NATIONAL REPORT? Consolidation in the lodging industry is having a major impact on purchasing companies. ?It?s gotten more competitive because of consolidation, and some of the larger hotel groups are trying to make deals directly with the larger vendors,? said Douglas Parker, president of Leonard Parker Co. of Coral Gables, FL. ?When you have 50 or 100 properties, you have a lot of clout,? Parker added. Some hotel groups are using one room type for several properties, according to Parker. ?They are developing one program with the same case goods, the same carpet, and so on.? Designtex Enterprises has been ?caught in a stall? during the past year because of the consolidation of some of the major players in the industry, said Robert Algiere, president of the Dallas-based firm. ?Business has been steady but not in an upward spiral,? Algiere said. Sales in 1998 were $6 million ?which is low for us,? he said. The company anticipates doing $9 million this year, a level Algiere described as ?more reasonable.? In addition to consolidating the vendor base and standardizing products across the entire portfolio, there is a move by management companies and franchisors away from vendor rebates, according to Scott Foos, president/CEO of Parker Reorder Co. of Coral Gables, FL. ?Franchisees think it?s unfair for the parent company to be collecting rebates? it?s a very sensitive issue,? Foos said. On a more positive note, the purchasing agent is being brought in sooner than previously and working closely with the designer to achieve a common goal? what is best for the hotel owner. ?There used to be inherent conflict; it?s now more of a team effort,? said Alan Benjamin, managing partner of the Boulder, CO-based Benjamin West. ?We?re involved from day one, making the process much more efficient.? An executive at another purchasing company agreed. ?The sooner you can start on a project, the better,? said Chuck Joiner, director of purchasing for Middle Georgia Corp./Telerent of Jackson, GA. The role of purchasing agents has been changing in recent years. While they were always viewed as part of the team, they now have a more significant role in the lodging industry. According to Neil Locke, president of Neil Locke & Associates of Itasca, IL, purchasing agents are being consulted in areas where they previously did not have much input. ?Their advice is sought on suitability of product, the merits of suppliers? it?s not just price anymore,? he said. Hotel owners, developers and managing companies want ?a total solution,? noted John McDonald, executive director of business development of the Minneapolis-based Provisions. ?You must have partners? in freight management, general contractor services, project management? to provide a turnkey job,? McDonald said. He added that Provisions, the purchasing arm of Carlson, partners with The Gettys Group on various projects. The Gettys Group is taking the purchasing process one step further than it has in the past with a project implementation service, according to Julius van Heek, vp of the Chicago-based firm. ?We can get product to the loading dock but the hotelier needs to get it into the room. Project implementation services facilitate that process,? van Heek said. The Gettys Group has a Fast Track Solutions program where design and purchasing services are combined, van Heek said. There are no additional fees; the project cost includes the services. According to van Heek, Fast Track Solutions can save a considerable amount of time on the typical renovation project. The program compresses the standard seven-month purchasing, design and delivery process into a 60-day delivery timetable. ?Even though one of the main benefits of Fast Track is expedited delivery, we are still able to meet the needs of the market, owner and geographic location of the subject property,? van Heek said. The Gettys Group has also developed the Choice for the New Millennium program for Choice Hotels International. The progra
