The problem no one sees
In most independent hotels I have audited, procurement is managed by instinct. You order when things run out, throw away when things expire, and never really know what stock is worth at any given moment. This approach has a cost, not a spectacular one, but a silent one that erodes margin every week. In a 40 to 60-room property, unstructured procurement management represents on average 3 to 8% of annual revenue in avoidable losses.
The 3 most common sources of loss
1. Untracked perishables. Without expiry date tracking and FIFO rotation applied, fresh products go in the bin.
2. Phantom stock. Products ordered but poorly received, stored in two different places, or "borrowed" without traceability. Real stock is below theoretical stock, and nobody knows it.
3. Non-optimised purchasing. Without consolidated volumes or supplier comparisons, you often pay 10 to 20% more than necessary on standard references.
Where to start
Three simple actions to regain control: a monthly valued inventory, a systematic purchase order with sign-off, and a loss tracking by category. Not complexity, method.