How Hospitality Purchasing Software Fixes Hospitality Hurdles

Although hospitality purchasing software won’t be able to fix all your hurdles, it can be helpful to make your hospitality business run more efficiently.

What does this mean? In short, hospitality purchasing software is a tool that allows managers to easily keep track of various supply needs. People and processes are what makes hospitality supply chains productive. In fact, researchers Xinping Shi & Ziqi Liao of Hong Kong Baptist University believe that inter-organizational trust is what makes hospitality procurement work (2011).

Inter-organizational trust can be defined as the trust between separate functional departments that believe in each others ability towards making an activity successful. However departments do not talk to other departments, similar to companies are not in charge of talking to other companies. People within departments talk to other departments.

Which means improving a hospitality service providers supply chain performance relies on people and processes. Hospitality purchasing software simply makes this process easier and more effective.

Part of establishing trust between interdependent organizations/departments involves methods of reducing risk and mitigating opportunistic behavior. The people involved must believe that their key partners will not try to cheat or act upon opportunistic possibilities. Team members between interdependent organizations need to commit to cooperation, communication, planning, negotiation, coordination, and problem solving (Shi & Liao, 2011).

By committing to the above actions companies can build trust, and trust is a significant key to supply chain operations between multiple partners. If you were interested in implementing hospitality purchasing software, trust would expedite the adoption of this software.

Hospitality Best Practices

Here are three hospitality best practices that service providers can enact to facilitate trust, optimize their supply chain performance, and manage their budgets.

1. Good staff selection. Firms should focus on empowering staff members to make good decisions, take responsibility, and align their decisions to firm priorities (Shi & Liao, 2011). Communication and problem-solving skills are imperative to the success of inter-organizational activities.

2. No trust, no cooperation. Trust is difficult to build and easy to destroy. Firms should aim to be cooperative and diplomatic in sensitive issues to create an environment for trust (Shi & Liao, 2011).

3. Freedom to choose. Firms should not be afraid of selecting suppliers outside their current supply partners. Instead firms should focus on developing core services to strengthen their corporate reliability (Shi & Liao, 2011).


Shi, Xinping, and Ziqi Liao. “Managing supply chain relationships in the hospitality services: An empirical study of hotels and restaurants.” International Journal of Hospitality Management 35 (2013): 112-121.