When running a hotel, finding reliable, cost-effective suppliers is key to maintaining smooth operations. More and more hotels in the Philippines are partnering with local suppliers for their linens, furniture, and other essentials. It’s not just about reducing costs—there’s a host of benefits that come with choosing local partnerships. In this article, we'll explore these benefits and provide practical tips to help hotel and resort owners build strong, lasting relationships with local suppliers.
The Benefits of Partnering with Local Suppliers
Cost Efficiency
Partnering with local suppliers can significantly cut costs, especially when it comes to shipping and handling fees. Importing goods from international suppliers can often inflate costs. When you choose local suppliers, transportation expenses are minimized, allowing for more flexible budgeting.
For example, one of our clients, a boutique hotel in Cebu, switched to purchasing linens locally from Allora Linen and saw a dramatic reduction in their operational expenses. Not only were they able to maintain high-quality standards, but they also had more room in their budget to focus on improving other aspects of the guest experience.
Faster Deliveries and Flexibility
With local suppliers, you don’t have to wait weeks or months for deliveries. This is crucial in the hotel industry, where supplies can run out faster than expected, especially during peak seasons. A local supplier can deliver what you need on short notice, reducing downtime.
We worked with a resort in Palawan that experienced unexpected linen shortages during the summer holiday rush. Because they had partnered with a local supplier, we were able to restock their inventory within days, ensuring that their guests never even noticed the shortage.
Supporting the Local Economy
One of the often-overlooked benefits of partnering with local suppliers is the positive impact on the local economy. By sourcing locally, hotels and resorts contribute to the growth of small businesses and promote sustainable community development. This is not just about financial support—it also enhances the hotel's reputation, particularly among guests who value businesses that invest in the community.
Many of our clients, like eco-friendly resorts in Siargao, proudly advertise their partnerships with local suppliers. It gives them a unique selling point, especially to eco-conscious tourists.
Access to Fresh and Authentic Products
Incorporating locally sourced products—such as native wood furniture, local crafts, or even fresh tropical flowers—gives your hotel a distinct flavour and authenticity that guests appreciate. Partnering with local suppliers ensures that you can offer these unique touches, enhancing the guest experience.
For instance, one of our partner resorts in Bohol worked with local artisans to create custom décor, adding an authentic Filipino touch to each room. It not only impressed their guests but also helped the resort stand out in a competitive market.
Environmental Sustainability
Sustainability is no longer just a buzzword—it’s something guests are actively looking for. By reducing your carbon footprint through shorter transportation distances and choosing eco-friendly products, you can attract eco-conscious travellers. Many local suppliers offer sustainable options, such as organic linens or reusable packaging.
When we worked with a hotel in Davao, they were able to cut down their carbon emissions significantly by sourcing both their linens and cleaning supplies locally, reducing their reliance on imported goods. It was a win-win for the environment and their brand image.
Tips for Partnering with Local Suppliers
Research Local Options Thoroughly
Before diving into a partnership, do your homework. It’s essential to research local suppliers thoroughly to find those that align with your hotel's needs and values. Look for recommendations from fellow hoteliers, or attend local trade shows to meet potential partners in person.
One of our clients found their ideal local supplier through a simple referral. They were struggling with inconsistent delivery times from an international provider, but after switching to a local partner, their supply chain stabilized, and their costs decreased.
Read our previous blog post on Local Immersion: Partnering with Filipino Communities to Elevate Your Resort Experience!
Negotiate Contracts Wisely
Once you've identified a supplier, the next step is negotiation. It’s important to be clear about pricing, delivery timelines, and quality standards. Having everything laid out in a contract ensures that both parties are on the same page and reduces the risk of misunderstandings down the line.
A hotel owner we worked with in Tagaytay negotiated favourable terms with a local supplier for bulk linens, allowing them to save on both costs and storage space. By establishing a clear schedule for deliveries, they were able to keep their inventory lean without risking shortages.
Ensure Quality Control
Quality control is critical when working with any supplier, especially local ones. It’s important to vet suppliers by reviewing their previous work or asking for client testimonials. Having clear quality standards in place ensures that your guests receive the level of service they expect.
For example, a hotel in Manila had a minor issue with the durability of their bed linens. After we stepped in to review their supplier’s practices, we implemented more rigorous quality control checks. This resulted in a higher satisfaction rate among guests, many of whom complimented the improved comfort and quality of the bedding.
You can read more about the importance of quality control in our previous blog post.
Build Long-Term Relationships
One of the keys to success in partnering with local suppliers is building strong, long-term relationships. These partnerships go beyond transactional exchanges—they involve trust and mutual benefit. Hotels that foster these relationships are often rewarded with better pricing, priority service, and customized products.
We’ve seen this firsthand with our long-term clients in Cebu, where local partnerships have allowed them to negotiate better terms over time, from discounts to exclusive product lines.
Challenges of Partnering with Local Suppliers (and How to Overcome Them)
Limited Product Variety
One potential downside of working with local suppliers is that they might not offer the same variety of products as international companies. However, this can be overcome by working with multiple suppliers or even discussing ways they can expand their offerings.
We worked with a resort that needed specific cleaning products not initially available locally. Through discussion, the supplier was able to expand their product range to meet the resort’s needs, ensuring they had everything under one roof.
Supply Chain Disruptions
As with any supplier, disruptions can occur. However, partnering with several local suppliers can mitigate this risk. Having backup plans and diversifying your suppliers ensures that your operations won’t come to a halt due to unforeseen disruptions.
One hotel owner in the Visayas shared how they avoided a major setback by having multiple linen suppliers lined up. When one experienced delays due to a natural disaster, they were able to quickly pivot to another local supplier, keeping their operations smooth.
Balancing Price with Quality
It can sometimes be tempting to choose a supplier solely based on price, but in the hospitality industry, quality should never be sacrificed. We’ve seen hotels make the mistake of going for the cheapest option, only to have to spend more in the long run due to poor product durability.
We always recommend working with suppliers that strike the right balance between affordability and quality, ensuring that your hotel remains competitive without compromising guest satisfaction. Allora Linen offers a variety of high-quality, hotel supplies, toiletries, and linens that help hotels in the Philippines achieve this balance.
Conclusion
Partnering with local suppliers offers numerous advantages, from cost savings to support the local economy, faster deliveries, and more. By carefully selecting, negotiating, and building long-term relationships with your local partners, you can ensure a smooth, successful partnership that benefits both your hotel and the community.
If you’re looking to make the switch to local, Allora Linen is here to help. With high-quality products and a commitment to excellent service, we’re dedicated to helping hotels across the Philippines streamline their operations and enhance the guest experience.
For more insights on managing your hotel supplies, check out our previous blog posts.
External Links:
For a broader understanding of sustainable hotel practices, visit Sustainable Travel International.
Learn more about building strong supplier relationships in hospitality at Hospitality Net.
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