Long Waits, High Shipping Costs: The Impact of the Global Supply Chain on Hotels

Costs and Delays Drive Innovation and Creativity in Facing Challenges

17 September 2021
costar

Like many industries, hotels are at the mercy of the delays in the global supply chain.

Sarah Churchill is a senior manager of business development for Benjamin West, a procurement company that spends $1.5 million daily on furniture fixtures and equipment and operating supplies and equipment. She said global supply chain issues have produced issues with freight and logistics to the point of delays and higher costs.

“This is the most challenging climate we’ve seen in the industry,” Churchill said.

Hotel operators agree this is a time unlike any other as far as obtaining goods and supplies.

Rob Auerbach, senior vice president of purchasing for Island Hospitality Management, said the procurement situation is “much worse than usual” with inventories low and freight more expensive.

Philip Bates, CEO of TMC Hospitality, agreed that the procurement situation is “much worse than usual.” For instance, a contractor approached TMC Hospitality toward the end of a contract in an attempt to retroactively recoup material cost overages backdated to March 2020.

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