Challenge:
A leading hospitality company, despite efforts to motivate staff and enhance guest experience, faced consistently low Net Promoter Scores (NPS) and Guest Satisfaction Survey (GSS) . This indicated a disconnect between guest expectations and their actual experience.
ProVal's Approach:
ProVal experts conducted a comprehensive analysis of guest touch points within the hotel. While core services appeared satisfactory, several seemingly minor issues were consistently mentioned in guest feedback. These included:
- Breakfast items running out and taking excessive time to refill.
- Luggage carts were often unavailable, causing delays in the retrieval of guests’ belongings
- Essential items such as linen, towels, and other supplies were frequently running out, affecting guest comfort and satisfaction.
Identifying the Root Cause:
ProVal identified the underlying issue as a reactive inventory management system. Reordering of supplies typically occurred only when existing stock depleted, leading to occasional shortages. This resulted in frustration and inconvenience for guests, impacting their overall experience.
Solution and Implementation:
ProVal implemented a multi-pronged solution:
- Kanban System: Introduced visual dashboards to track inventory levels across departments, fostering communication and transparency in stock management.
- Proactive Procurement: Defined reorder points to ensure timely replenishment, eliminating stockouts and ensuring guest needs were consistently met.
- Bulk Purchasing: Leveraged the hospitality group’s combined purchase power to negotiate favorable bulk discounts with vendors.
- Three-Tier Backup System: Implemented a system with three layers of back-up stock:
- Individual hotel reserves.
- Centralized warehouse inventory.
- Vendor readily available stock.
Results:
- Improved Guest Experience: Streamlined inventory management minimized stockouts, leading to a more positive and seamless guest experience.
- Cost Savings: Bulk purchasing and optimized stock management facilitated cost savings of $150,000 annually.
- Enhanced Communication: Kanban system ensured efficient communication and coordination between departments, eliminating stockout emergencies.
Conclusion:
This case study demonstrates the significant impact of data-driven inventory management on guest experience and profitability. ProVal’s strategic approach transformed a seemingly minor issue into a major contributor to guest satisfaction and cost reduction, resulting in a significant improvement in the hospitality company’s NPS.
Project Details
- Category: Hospitality
- Client: Leading Hospitality Chain
- Location: U.S.A
- Duration: 4 months
- Results: The optimized procurement processes resulted in substantial cost savings for the client, amounting to $150,000 annually per hotel.