33% of procurement use no management system

Hotelier Middle East's Hospitality Procurement Report 2016 reveals that procurement management systems in the Middle East are mostly outdated, or even not being used at all

The use of procurement management systems in the Middle East is believed to be significantly outdated
The use of procurement management systems in the Middle East is believed to be significantly outdated

According to respondents surveyed for Hotelier Middle East’s Hospitality Procurement Report 2016, one third reported that their business currently does not use any procurement management system.

This third accounted for respondents from both international chains, and local operators. The report is available to download in full now.

The report also highlighted that the majority of procurement professionals who respondent that their business used some form of procurement management system also admitted that this involved a “self-made spreadsheet based system”, used to record all aspects of the procurement process.

Further research and interviews conducted for the Hospitality Procurement Report 2016 suggest that the use of procurement software is not only lacking in the region, but also significantly outdated in comparison to elsewhere in the world. 

Inside the report, D.ream director of purchasing Brendan Johnston estimates that procurement systems used in the Middle East are as much as five years behind software being used in the US and Europe.

Talking to Hotelier Middle East, Jumeirah Etihad Towers procurement manager Radha Valiathan suggested that within the Middle East, the UAE is less significantly affected by this issue. “I believe, in the UAE we are using updated systems, especially at the five star properties,” he told us.

At Jumeirah Etihad Towers, he added, the procurement team uses a software based management system called ADACO.

Another issue covered in depth in the report, is the room for growth in the region regarding the use of e-procurement.

To access the Hospitality Procurement Report 2016 in full, click here.

 

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