The Procurement System that Gives Radisson Better Control and Increased Efficiency Across Scandinavia
After many years of success with the Millum procurement system in Norway, the Radisson hotel chain decided to implement the system in all its hotels across Scandinavia. The benefits of a shared procurement system across the Scandinavian countries include increased control, more efficient processes, and more economical purchases across borders.
Increased Control Over Procurement
With a total of 39 hotels in Scandinavia, Radisson has a lot of purchasing to manage daily. Large procurement volumes bring challenges in maintaining control.
With an efficient cross-Scandinavian procurement system tailored for hotels, restaurants, and staff restaurants, this becomes much easier. A procurement system that consolidates all supplier agreements in one place with a single login provides better opportunities for centralized control. This makes it possible to compare purchases between countries and develop a comprehensive procurement strategy for the entire region.
By ensuring that all hotels follow the same standards and guidelines for procurement, Radisson can also more easily ensure consistency in the products and services they offer guests, regardless of where in Scandinavia they are. This will create a more unified brand experience and can increase customer satisfaction and loyalty for the hotel chain.
Streamlining the Procurement Process
A shared procurement system can streamline the procurement process across Scandinavia. By entering into centralized procurement agreements, each hotel avoids spending time and resources on negotiating contracts. At the same time, automating routine tasks such as orders, approvals, and invoice processing reduces administrative work and the risk of errors. This saves significant amounts of time and allows employees to focus on more rewarding tasks.
Economic Benefits
The increased control and efficiency in the procurement process lead to economic savings, while better oversight and data provide improved logistics, which in turn reduces inventory costs and waste.
Additionally, access to consolidated data on all purchases and suppliers makes it easier for Radisson to identify areas where they can negotiate better deals and prices.
The ability to consolidate orders and make larger volume purchases also gives the hotel chain better negotiating power, potentially leading to lower prices or discounts.
Not to mention that reduced administrative work also means lower administrative costs.
Other Benefits of a Cross-Scandinavian Procurement System
One of the main reasons Radisson chose to implement Millum's procurement system in all its hotels in Scandinavia was that the system could easily integrate with their global ERP system, SAP. Millum demonstrated this integration in a successful pilot project with the hotel chain. The fact that the procurement system could connect to the ERP system, which is used in all Radisson hotels, was a significant advantage.
A shared procurement system for all hotels in these three countries is easier to maintain and reduces complexity and the need for employee training in different systems. In short, a shared procurement system contributes to a more efficient and profitable business.
