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Hyatt Hotels Corporation Transforms Procurement with BirchStreet Solutions

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Hyatt Hotels Corporation, a global leader in hospitality since 1957, managing over 850 properties worldwide, sought to update its procurement function. With a revenue of more than $4.4 billion, Hyatt aimed to enhance operational efficiency, achieve better control over expenditures, and, of course, deliver world-class hospitality services.

The Challenge

Hyatt set key objectives:

  • Transition to a cloud-based procurement platform.
  • Implement a paperless Purchase Order (PO) system.
  • Centralize purchasing and accounting processes.
  • Improve spend visibility, control, and compliance.
  • Enable detailed reporting and product forecasting.

The Solution: BirchStreet Systems

Hyatt selected BirchStreet Systems for its hospitality expertise and comprehensive solutions. 

BirchStreet specializes in streamlining and automating procurement processes across hotel organizations. The company is dedicated to helping hotels maximize their procurement dollars by ensuring correct spend from the right suppliers. Recognizing the crucial role of procurement as the lifeblood of hotels, it provides a comprehensive system designed to automate and optimize day-to-day workflows, notes Paul St. John, Vice President, Sales Division, BirchStreet Systems. Its key features include:

  • Automated Procurement Workflow: This system follows the daily workflow of hotel procurement teams through modular automation, ensuring efficiency and accuracy.
  • Supplier Interaction: The platform facilitates seamless interaction between hotels and various suppliers. For example, for adopted suppliers, BirchStreet develops a portal tailored to their specific needs, fostering a well-functioning ecosystem.
  • Data Security and Privacy: It’s critical to prioritize the security of data and privacy. Paramount to their approach is a commitment to maintaining the confidentiality and integrity of the information processed through their platform.
  • Reporting and Automated Dashboard: The system includes robust reporting capabilities, complemented by an automated dashboard. This empowers hotels with the tools to analyze and visualize data, aiding in decision-making and strategic planning.
  • Inventory Management: Particularly crucial for large-scale clients like Hyatt, BirchStreet helps organizations manage their inventory effectively, maximizing on-hand counts and ensuring efficient stock control.
  • Global Reach: With solutions like AP-3 Way Auto Match designed for global organizations, it caters to the needs of businesses operating internationally. This aligns with the diverse portfolio and global presence of clients like Hyatt

BirchStreet's focus extends beyond providing a one-size-fits-all solution. The company understands that each brand or organization may have unique requirements. By offering flexibility and adaptability, BirchStreet ensures that its system aligns with the specific needs of its diverse clientele.

The Results

The implementation at Hyatt yielded significant results:

  • 40% Savings in Invoice Processing Labor Costs: Hyatt achieved a substantial reduction in the labor costs associated with invoice processing by utilizing shared services in the Accounts Payable (AP) department.
  • 2-5% Savings as a Percentage of Total Spend: Through optimized procurement processes, Hyatt realized a significant reduction in its spending, contributing to cost savings.
  • 20% Overall Purchasing Spend Reduction: Centralized and controlled procurement processes led to a notable reduction in overall purchasing spend, boosting the organization's cost-efficiency.
  • 70% Faster Invoice Processing Time: The adoption of BirchStreet's solutions enabled the Accounts Payable department to process invoices significantly faster, resulting in improved financial operations.
  • 80% Purchasing Compliance: The automated and centralized procurement system facilitated a remarkable increase in purchasing compliance, ensuring that budget allocations and procurement guidelines were consistently adhered to.

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