Hospitality Logistics Solutions

The term “hospitality logistics” can describe part of the overall supply chain management for hotels, motels, resorts, and similar facilities. More specifically, it can refer to facilitating the flow of furniture, fixtures, and equipment (FF&E) as well as toiletries, food, linens, and more for ongoing hospitality operations. Hospitality logistics is a broader phrase than “hotel logistics,” though, also encompassing the food and beverage industry, event management, and travel.

As part of hospitality logistics, inventory can be stored and managed in warehousing, efficiently and cost-effectively transported from wholesalers and more to the stops along the supply chain using optimal modes.

The best hospitality logistics programs are transparent, allowing companies high visibility into where their FF&E and other products are located every step of the way. Plus, high quality hospitality logistics—when referring to hotel logistics—contribute significantly to the guest experience, allowing them to have the necessities and amenities needed for an enjoyable stay. When hospitality logistics is referring to other components, such as the food and beverage industry, high quality services meet the needs of customers.

The terms of “hospitality supply chain management” and “hospitality logistics” are often used interchangeably but there are nuances between the two. Information found in Supply Chain Logistics Managementdescribes supply chain management as a collaborative network that connects manufacturers, suppliers, and other partners—and, in the case of hospitality facilities, with hotels, motels, and resorts and their guests. Ideally, supply chains are managed efficiently in ways that provide value with supply chain management serving as the “operational framework within which logistics is performed.”

“Hospitality logistics,” meanwhile, is a key component of overall supply chain management for hospitality centers. Michigan State University cites the Council of Supply Chain Management Professionals when they describe logistics as the portion of the supply chain that “plans, implements and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customer’s requirements.”

Returning to Supply Chain Logistics Management, they define logistics by the activities engaged in such as “transportation, warehousing, packaging and more—that move and position inventory and acknowledge its role in terms of synchronizing the supply chain.”

So, although all of hospitality logistics would fall under the umbrella of hospitality supply chain management, the inverse is not true. Not all supply chain management falls into the category of logistics.

Hospitality management is a broad term that encompasses the oversight of a hospitality industry business, administratively and operationally. This could include constructing and maintaining buildings, providing reception and concierge services, and so forth. Hospitality logistics provides these businesses and buildings with what they need to satisfy guests or other customers. In the case of a hotel or resort, hospitality logistics would manage the process of getting the location of the FF&E they need along with food, linens, spa products, and much more. Even the finest hotels can’t provide people with the experiences they desire without efficient hospitality logistics that get products where they need to go: accurately and on time.

The seasonality of the hospitality business can create supply chain management challenges. During peak seasons, demand can be quite high, and getting enough supply transported and delivered to satisfy current needs can be challenging. When demand surges are unexpected, then seamlessly managing the hospitality supply chain can become tricky—especially when solid backup plans have not been created.

To ensure quality supply chain management, transportation strategies must be successfully implemented. Even the best laid plans, when it comes to hospitality logistics, can go awry when transportation difficulties arise such as unexpected detours or other delays or bad weather. Food, drink, and other perishables need special transportation, and international shipping can add additional steps and complexities to the hospitality logistics process, including customs requirements and appropriate documentation. Other challenges focus on regulatory compliance issues, lack of transparency along the supply chain, quality control issues when multiple suppliers are used, and so on.

Logistics’ best practices are time-tested procedures that are used to accomplish the chosen goal: getting desired products to the end users’ locations.

It can be quite complex to ensure that freight is consistently transported and delivered to the appropriate places on time. This involves strategic forecasting, warehousing, and more before choosing optimal modes of transportation that fit the company’s timelines and budgets.

Negotiating volume discounts and otherwise obtaining the best pricing available is also a crucial element of cost-effective best practices. Using applications that provide full visibility into the supply chain via today’s advanced technologies is a modern best practice to optimize the supply chain—and use of this technology highlights the importance of clear, regular communication from the start of the process to final mile delivery.

Third-party logistics companies are businesses that specialize in providing professional logistics services, freeing up companies to focus upon their own growth and core competencies. Third-party services that NXTPoint provides includes:

• 3PL Warehousing, Distribution, and Fulfillment Services
• Logistics Project Management, including hotel and resort FF&E
• Transportation and Freight Management
• Final Mile Delivery

When your company is looking to partner with an experienced third-party logistics company for domestic and/or international supply chain needs, please reach out for a consultation with one of our experts.

First, because of the increasing complexities of logistics today, it’s important to select an experienced partner. NXTPoint leverages more than a century of logistics experience to meet or exceed the requirements of each of our customers. You’ll also want to ensure that the third-party logistics company offers the services needed by your business and that your needs dovetail with the strengths of the logistics company. Do they provide services in geographic areas you require, domestically and internationally? Does the third-party logistics company have experience specifically in the hospitality industry? Ask to see licenses of the potential logistics partner and check their reviews.

For a professional consultation with one of our experts, reach out. We’ll listen carefully to your specific needs and can design a customized program that meshes with your requirements.

Contact us online to discuss your unique needs. Our expert team will design a personalized program for your particular requirements. Thank you!