Invisible Systems
Inge, Jon. Invisible Systems. Hotel Technology Magazine. Fall 2006. http://www.hospitalityupgrade.com/_files/File_Articles/HUFall06Inge_InvisibleTechnology_Fall06.pdf
SUMMARY
The article "Invisible Systems" brought to light the fact that there are several intergration systems in the hospitality industry that significantly contribute to the a property's bottom line aside from your standard PMS, POS, reservations, etc. New systems such as inventory and purchasing are proven to "deliver real ROI" according to the author of the article, Jon Inge. Inge suggests that despite it's invisibility to the guest, I/P systems should not appear the same way to property managers, as more considerable capital investment towards these new technologies is being over looked.
Purchasing manages the ordering and receiving of products, it is most often found in food + beverage but can also be used in other aspects of an operation (ex: retail stores in casinos). Inventory controls and maintains stock at the most efficient levels, and handles transfers from storeroom to the kitchen or outlets, and can also track spoilage and loss. Other features you may find are menu cost control and recipe upgrades.
New systems such as Adaco, Moreton Bay, and Red Rock have managed to have a higher level of integration despite a seemingly improved ease of use. Being user friendly is not the only new trend found in these systems. Other trends include an increased use of invoices, electronic bids from reverse auctions, and more precise re-ordering (factoring in # of guests, season, business trends). However, perhaps the biggest trend in inventory (RFID Tags) are still being put on hold by the hospitality industry. Owners feel that the system is still too expensive, and has flaws such as difficulty reading tags in deep freezers, reading metal cans with fluids, etc. Though Inge seemed to think that RFID tags will still play a big part in the vastly improving field of IT in the Hospitality Industry.
REFLECTIONS
I feel that in this modern era of hospitality, and all business for that matter, it is imperitive to remain knowledgable of advancements in technology. This especially stands true when discussing return on investments. Though new integration systems for inventory and purchasing may not generate income like day to day operation systems such as PMS, or POS systems, they can however, drastically reduce costs in the long run. These new systems take such an accurate inventory that they have led to physical checks occuring less frequently. The physical checks have also been simplified due to advancements in PDA's, and handheld barcode scanners. These systems are also remarkably accurate, reporting less than 1% in errors according to the article. This precise inventory management places direct and appropriate accountability on employees, produces low bidding wars from vendors in reverse auctions, increases the speed of a transaction through invoices, and maintains a stronger means of business-vendor communication. With such obvious advantages presented by these new and improved I/P systems (these were just some of the key examples) it amazes me that there is this apparent negligence in making a financial commitment to purchasing new systems.
SUMMARY
The article "Invisible Systems" brought to light the fact that there are several intergration systems in the hospitality industry that significantly contribute to the a property's bottom line aside from your standard PMS, POS, reservations, etc. New systems such as inventory and purchasing are proven to "deliver real ROI" according to the author of the article, Jon Inge. Inge suggests that despite it's invisibility to the guest, I/P systems should not appear the same way to property managers, as more considerable capital investment towards these new technologies is being over looked.
Purchasing manages the ordering and receiving of products, it is most often found in food + beverage but can also be used in other aspects of an operation (ex: retail stores in casinos). Inventory controls and maintains stock at the most efficient levels, and handles transfers from storeroom to the kitchen or outlets, and can also track spoilage and loss. Other features you may find are menu cost control and recipe upgrades.
New systems such as Adaco, Moreton Bay, and Red Rock have managed to have a higher level of integration despite a seemingly improved ease of use. Being user friendly is not the only new trend found in these systems. Other trends include an increased use of invoices, electronic bids from reverse auctions, and more precise re-ordering (factoring in # of guests, season, business trends). However, perhaps the biggest trend in inventory (RFID Tags) are still being put on hold by the hospitality industry. Owners feel that the system is still too expensive, and has flaws such as difficulty reading tags in deep freezers, reading metal cans with fluids, etc. Though Inge seemed to think that RFID tags will still play a big part in the vastly improving field of IT in the Hospitality Industry.
REFLECTIONS
I feel that in this modern era of hospitality, and all business for that matter, it is imperitive to remain knowledgable of advancements in technology. This especially stands true when discussing return on investments. Though new integration systems for inventory and purchasing may not generate income like day to day operation systems such as PMS, or POS systems, they can however, drastically reduce costs in the long run. These new systems take such an accurate inventory that they have led to physical checks occuring less frequently. The physical checks have also been simplified due to advancements in PDA's, and handheld barcode scanners. These systems are also remarkably accurate, reporting less than 1% in errors according to the article. This precise inventory management places direct and appropriate accountability on employees, produces low bidding wars from vendors in reverse auctions, increases the speed of a transaction through invoices, and maintains a stronger means of business-vendor communication. With such obvious advantages presented by these new and improved I/P systems (these were just some of the key examples) it amazes me that there is this apparent negligence in making a financial commitment to purchasing new systems.
posted by Brian Grainer | 6:49 PM
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