Former GE CEO Jack Welch once said: “In a company, procurement and sales are the only two revenue-generating departments, and any other department is the management fee.” As the procurement is important in the enterprise，how to make enterprise procurement save money, worry and improve efficiency has become a concern of every enterprise manager.
 

Today, we will review the new book launch conference of Digital Purchasing Wave and share the digital procurement experience of the multinational hotel management company Colife. See how Colife can make breakthroughs in innovation and realize cost saving and efficiency improving in corporate procurement.
 

New Book Launch of Digital Procurement Wave
 

Experience sharing of Colife

Wang Gao General manager of Colife Hotel Management
 

Introduction of Colife
 

Colife Hotel brand originated from Singapore. It is a multinational company integrating hotel brand innovation and management. It is committed to providing global owners with a range of services related to hotel management. Its brands include: Colife Hotel, Colife Resort, Colife Apartments and Colife boutique hotel, which represent the best of the hotel in hotel markets.
 

Opening ceremony of Colife Hotel in Puning

Colife Hotel in Puning has 182 deluxe rooms, 1 banquet hall which can accommodate more than 600 people, Chinese and Western restaurants, tea bars, happy world and other facilities. At that time, one purchasing manager and I had to complete 11 million procurement budgets within one month before the opening of the business, including 22 bidding projects and 7 inquiry projects. Colleagues who have made purchases should know that it is very difficult to complete such a large number of purchases within one month, but in the end we still completed the procurement before the node, and it only cost more than 7 million, which saved about 3 million.

Opening ceremony of Colife Hotel in Bozhou

There are 237 deluxe rooms, 1 banquet hall which can accommodate more than 800 people, Chinese and Western dining, gym, heated swimming pool, yoga room, tea bar, dry/wet steaming, chess room and other supporting facilities in Bozhou Colife hotel. The configuration of Bouzhou Colife hotel is higher than Puning Colife, and the procurement business has increased. In view of Puning's experience, we did not increase the overall budget of 11 million, but the actual cost took only about 8 million and saved almost 3 million.

Digital Procurement Experience of Colife
 

There have been several significant changes in the digital procurement practices of Colife Hotels over the past year:

The first is the cost reduction. The purchases of Puning and Bozou have saved about 3 million to 4 million respectively compared with the budget. Besides, the labor cost, time cost, and management cost have also been reduced accordingly. The same workload but less procurement staff. The same time but more the processing volume.
 

The second is efficiency. The efficiency is reflected in the multi-project synchronization. All tenders can be sent out in one day, and the bidding documents and quotation information system are automatically sorted out. If there are any omissions or problems, the system will promptly remind us. The digital model is not limited by time and space. For example, the Puning project is carried out in Shenzhen. We shared information through the system, which improve the efficiency of communication and execution.
 

Another point is the transparent. All procurement processes and data are documented, and strictly confidential of course. The system can use the sealed-bid to ensure the fairness; quotation and evaluation online can effectively avoid the appearance of the together-conspired bidding.
 

The cooperation between Colife Hotel and Entroyi is only a starting point for the innovation and development of hotel procurement. After that, we will continue to maintain good strategic cooperation and win-win development!
 

Guest questions
 

Q1: The savings you get from hotel purchases today are mostly compared with the budget. Is there a case comparing with historical prices?
 

Wang Gao: The two hotels are purchasing according to the standard of 4 stars or above. We visited a local five-star hotel and the grade is not as good as Colife. For a large-scale star-rated hotel, the purchase budget of 11 million is actually not much. The budget and the actual course will certainly fluctuate, but what we did not to expect is that the savings are more than 300-400 million. It is not a casual budget. We had referred to the historical price. One price comparison that has impressed me a lot is the purchase of air conditioners, and the cost is also reduced by 12% compared to historical prices.
 

Of course, in addition to the savings in purchasing prices, there are also hidden costs, such as labor, site, operations, and so on. Insiders all knows that the hotel will make money one day earlier when it opens, and the operating costs will be relatively low. Especially for hotels that do not own their own business premises. Dragging a day means wasting a day's rental costs. Therefore, it is practicable to help hotel procurement reduce costs and improve efficiency by using the Entroyi procurement system.
 

Q2: The Puning Colife that you share today has 180 rooms, including Chinese and Western food, banquet halls, children's world and other facilities. The quantity and scope of purchases are relatively large, how is it done in one month?
 

Wang Gao: I just mentioned that Entroyi procurement platform is a online collaboration system and is a tool to help us manage procurement projects. As a tool，we can publish more than a dozen bids at the same time within one day, so that we can save time to deal with many things and improve our efficiency. After receiving the bid, how to evaluate the bid, how to screen the sample, how to choose the right supplier still need a professional staff to judge. If you find a newbie who don't know anything about the market, I believe that it can't be done in a very short time even with the help of the tool.
 

Conclusion
 

Thanks to the Colife Hotel for sharing in the new book launch conference of Digital Purchasing Wave and thank partners for their long-term support and trust in the enterprise. Adhering to the concept of win-win cooperation and complementary advantages, Entroyi has always focused on intelligent supply chain management services, using digital technology as a means, integrating international advanced concepts, leading the way for corporate procurement to digital, and working together to create new procurement.