Hospitality Logistics: Benefits and Best Practices to Streamline Relocations/Renovations for Hotels
By Mike Steensma General Manager, Corrigan Logistics | January 26, 2014
With the hospitality industry on the upswing and a steadily improving economic outlook, the number of hotel renovations and expansions has picked up dramatically over the last year. In addition to the usual relocation and new project traffic, a large portion of the backlog of projects that were put on hold during the recessionary cycle is now coming back online. Subsequently, the need for professional logistics services to coordinate these complex improvement projects has reached critical mass.
With logistics professionals and renovation/relocation specialists in high demand, it is natural for hotel owners and operators to consider the question of how to select the right vendor. What should you look for in a logistics partner? What considerations should you factor into the equation when weighing the variables for your renovation, expansion, move or opening? Every commercial move or renovation is a complex endeavor, but hotel projects are particularly demanding. The nature of the industry makes the scale and scope of every renovation or relocation both literally and figuratively a big deal. Even minor missteps are magnified, and can carry a significant price tag. From transportation to warehousing and complete project management, a comprehensive logistics solution can save dramatic amounts of both time and money.
Understanding the true value of a logistics solution, and appreciating the range of service that an experienced logistics vendor can bring to the table is an important prerequisite to making an informed and strategic selection of a qualified logistics partner.
The Logistics Advantage
Whether it is project management, transportation services, or warehousing and distribution, the biggest logistics advantage comes from efficiency and accountability. The combination of expertise and resources displayed by the best logistics vendors streamlines many of the logistical difficulties inherent to hotel renovations or relocations, and introduces a level of accountability into a complex process with many moving parts.
The logistics advantage begins early. Because materials are typically purchased well in advance of actual construction, a logistics partner with the ability to have everything shipped to one central location that is close to the project-and delivered to the job site as needed-solves a number of potential problems and presents appealing efficiencies. Costly construction delays are minimized, and the ability to order in bulk-without regard for timing or delivery nuances-can save a significant sum of money. Because approximately 7-10% of product cost is directly related to transportation and delivery expense (and that can almost double when an order has to be broken up into multiple shipments), anything that reduces or simplifies the ordering and delivery process is a time- and money-saver.