Avendra Plans Major ’02 Expansion, GoCo-op Launches Upgraded Software

NEW YORK— Avendra LLC plans to put a major emphasis on its e-procurement application, powered by GoCo-op, within the next year and told HOTEL BUSINESS® that by the end of first quarter 2002, the company should have a significant number of its founding members using the Procura platform. Recently upgraded to Procura 5.1, Avendra currently has only a small percentage of its clients using the purchasing software, however, that “should change in 2002,” according to Dennis Baker, president/COO of Avendra. Baker noted that since the company’s inception in March, Avendra has been heavily focused on integrating its founders— Marriott International, Hyatt Hotels Corp., Club Corp USA, Bass Hotels & Resorts, and Fairmont Hotels & Resorts— and integrating its own organization and operations. “Next year, we plan to continue to focus on our founders, but also to go after other non-founder business,” he said. “Our founding group put us together. But I think we’ve been able to establish ourselves as an independent company and and we’re looking beyond our founders now.” Avendra expects to sign on a number of new clients next year and is currently targeting the nation’s top 300 management companies. “Now is a great opportunity to go after management companies, and we’re currently beefing up our sales team to go after new customers,” said Michael Pusateri, svp/sales and customer management for Avendra. In the past eight months, Avendra has grown its client base to 950, consisting of 3,100 properties, with 625 suppliers and 1.2 million line items. Of its more than 3,000 property locations, about 1,000 are not affiliated with Avendra’s founding members. Meanwhile, Avendra’s new e-procurement software is part of the Procura 5.1 rollout by GoCo-op, launched this month, which includes new templates and food and beverage distributors— marking a first for the GoCo-op platform. “Previously the functionality to offer F&B was not there. We did not have the technology to order and receive it,” said David Dresner, president/CEO of GoCo-op. Most hotels order food by a unit of measure and pay depending on weight. Until Procura 5.1, GoCo-op did not have the technology to verify and track the weight of food products ordered versus the amount received and paid for. In addition, GoCo-op has installed easy-to-use food and beverage templates with real-time integration into major national distributors and more than 200 regional food and beverage suppliers. The templates also enable users to select minimum orders to ensure that the hotel’s purchaser buys products in the quantities required to receive specific bulk discount rates.