Dukes The Palm, a Royal Hideaway Hotel operated by Barceló Hotel Group, is positioned on the Palm Jumeirah and is well-liked by both visitors and locals of the emirates. Popularity brings a colossal name to manage, which necessitates effective supply chain management. Here is everything you would like to know about managing this opulent property…
- What are the primary considerations for logistical operations to ensure the hotel runs smoothly?
Effective logistical operations play a pivotal role in the success of the modern-day hospitality industry in achieving operational efficiency. The vital function of logistical operations is to meet customers’ needs by optimising the movement of products and services. The primary considerations for effective logistic management are accurate planning, supplier selection criteria, frequency of deliveries, and the ability to carry out emergency deliveries.
- What operational difficulties are you presently encountering?
We have a complex supply chain that requires regular procurement of a wide range of products and services daily, and the disruption in the supply chain may have a moderate or significant impact on our operations.
Other key challenges are uncertainty and price volatility. In this part of the globe, we depend heavily on the rest of the world. At Dukes, The Palm, over 50 % of food and more than 85 % of non-food and beverage products are imported from outside UAE, especially Europe and Far East countries. With Brexit and Covid-19, many supply chains have been disrupted or shut down, which resulted in price fluctuation.
- How do you concentrate on the alignment of procurement as a business activity, given that multiple restaurants are on the property?
Procurement is a strategic process to ethically purchase quality goods and services to meet the organisational objective of competitive pricing, reduced lead time, and significantly offer added value. It is imperative to align the procurement process with the business activity. If aligned, procurement may focus its efforts on the right areas.
Given that there are multiple restaurants on the property, we always take the time to understand the needs and goals of the restaurant before making a procurement decision, especially when the season goes from high and low, and factoring in any further changes we must adapt to accordingly.
- What factors are considered to ensure a seamless supply chain across the many sectors the hotel works with?
Dukes The Palm is an ISO-certified hotel, and we have stringent control procedures established, from vendor selection to the food served to our valuable guests. We consider the following factors to ensure a continuous supply chain: pre-qualified suppliers and a diversified database.
We have over 300 active suppliers in our database who have passed through a customised pre-qualification process, which supports us in guaranteeing logistical success. Selecting suppliers who have been audited and certified leads to higher performance and increased confidence.
At the same time, having multiple backup plans is crucial. We have several suppliers backed up in our database in the same category, ensuring we can overcome unexpected supply and service disruptions.
- At what point does a supplier become a partner?
Specific attributes fortify genuine partnerships, including honest and transparent, regular and robust feedback, and extending relationships based on confidence and credibility. In short, a supplier becomes a partner only when both parties are in a mutually beneficial situation, and each interaction you have with your suppliers and vice versa is an opportunity to build trust.
- How do you schedule the inventory distributed across the several seasons?
Due to the seasonal nature of the region, we experience peak and off-peak periods and manage our inventory by adjusting par levels. Short seasons are controlled by placing advance orders. We also collect seasonal requirements by forecasting demands based on historical data.
- How did the property handle operations during the FIFA World Cup held in Qatar last year?
Procurement plays a vital role in the success of hotel operations. Especially when global events such as FIFA World Cup 2023 happened in our neighbourhood with high demands of products, a well-organised procurement management plan helped us to ensure that we addressed key points with suppliers and service providers to meet stakeholders’ expectations.