What are the benefits of joining a cooperative from a purchasing standpoint?
Today’s post is our SafeSourcing Archives.
Continuing with our series on cooperatives, today we are going to take a look into the hospitality industry by focusing on the Hospitality Services Group (HSG). This group, formed in 1989, provides small chain and independent hotels, restaurants, and retirement communities the purchasing power of a large company and is one of the most successful cooperatives in the United States.
The HSG is a fee based system that focuses on hospitality businesses in the northeast and touts some very useful benefits to its members that are 100% focused on the procurement process.
Industry focused expertise and planning – The HSG offers several tools, whitepapers and articles geared toward helping hospitality businesses plan for their most efficient and cost-effective operations. From menu planning and pricing to managing vendor agreements to a database full of product specific facts, the HSG is more than just a Buying Group.
High powered software – The HSG offers all of its members high powered software that allows them to track their costs, create recipes that allow for easier improvements in managed costs, and manage purchase orders from beginning to end.
Delivery & invoicing – By working with the HSG, companies have much less to worry about, as product is delivered straight to their building and the vendors invoice them directly. The HSG handles the relationships for their customers so that their customers can focus on running their business.
Research – Part of what the HSG offers its members in the way of purchasing is by researching new products, standards and technologies for producing the items they are purchasing to continually look for ways to reduce their customers cost-of-goods. This frees up the owners to be able to focus on their restaurants and hotels providing better service to their customers without worrying about staying current on everything in their industry from a procurement standpoint.
For more information on the retail industry’s cooperatives, the HSG or how your cost-of-goods can be positively affected, please contact a SafeSourcing Customer Service Representative.
We look forward to your comments.