My team is responsible for the procurement of many items at the hotel. When people hear the terms “Purchasing,” “Procurement,” and “Buyer,” they tend to think of food and beverage purchases. Some people are surprised when they learn that we also procure medical supplies, salon equipment, beauty supplies, health gear, etc. The majority of our items come through traditional procurement distribution channels. Other items are not always available through the traditional channels so we must look elsewhere. One of these avenues is online. I used the term web (as in the World Wide Web) above. It seemed to fit the blog title, but now I’ve dated myself. Maybe for my next blog I will talk about purchasing rotary phones?

From trinkets to Twinkies, Snickers to Snuggies (even the Leopard Skin Snuggies), the web has it all. On any given day, our team could be online multiple times purchasing needed items. Typically, online purchases are for unique and/or retail-type items. Many people make general assumptions about online purchases. Most may be true but not always:

Assumption: You can’t find deals online.
Reality: Not always true. We purchase flat screen TVs online. Not only can you find good pricing online, but some companies already have shipping built into the price. Companies from certain states do not charge tax when shipping to other states. Once you start purchasing a few televisions, the savings can add up.

Assumption: We pay the same price online as anyone ordering the same product from their home.
Reality: Again, not always true. Didn’t you see some of my previous blog posts? Purchasing Power = Purchasing Power. If your operation is purchasing multiple units, then price breaks are typically built in. Also, if you call the online company, they are sometimes willing to give you additional discounts to boot.

Assumption: You cannot find quality products online.
Reality: What is it with all of these assumptions? Just hold on a second, my friend. A number of manufacturers that produce products for wholesale distribution channels also produce products for retail distribution channels. While there are plenty of examples of residential grade products online, there are also plenty of commercial grade options available. Some manufacturers make identical items. In some cases, one item just happens to get better looking paint and a pretty label so they can sell it through retail channels.

Assumption: When I buy products online, they are either discontinued or become obsolete.
Reality: I should have quit while I was ahead. I’m sorry to say that this assumption and reality are typically the same. Online sites are retail driven. This means that product availability changes with the seasons. A style of shirt you purchased in the spring will probably be unavailable in the fall. This is a battle we deal with constantly since our outlets love to purchase retail apparel for their uniforms. A computer you purchased this year has probably been replaced by a newer version (or two) the following year.

In summary, there are deals to be found for your operations on the web, so use it as a tool in your arsenal when shopping for needed items.