Birch Street Further Strengthens Credibility in Market Further strengthening its credibility in the hospitality market, Birch Street recently hired two long-time industry veterans John F. Davis III as CEO, and David Chestler as senior vice president of sales and marketing. These recent executive additions punctuated a year of strong growth and customer penetration in 2008.
Overall customers and the total purchasing spend processed were up 35 percent in 2008, ending the year with 28,000 registered users, who processed more than $1.5 billion in purchasing transactions via the Birch Street System. New customer signings and implementations in 2008 included the Intercontinental Chicago O’Hare; the Crowne Plaza Colorado Springs; 250 Carlson’s Country Inns & Suites; six Moscow properties for Interstate Hotels and Resorts; and dozens of new Hilton properties, including several hotels in Egypt and France, bringing the total number of Hiltons using Birch Street to nearly 700.
Success at Hilton in Egypt and Paris Hilton’s first hotel in Egypt to implement the Birch Street online eProcurement system was the Hilton Sharks Bay, in Sharm El Sheikh, Egypt.
With that successful implementation, spend capture more than doubled for the property while at the same time consolidating the total number of suppliers from 422 to 183, and the time taken to process one grocery order was reduced from three man days to one. The property’s internal purchasing department headcount was reduced by 10, and the annualized savings to date is more than $1 million. With Birch Street’s help, the property expects projected cost savings/cost avoidance for the remainder of 2009 to be three percent to 10 percent of total spend, compared to hotel centric purchasing.
Hilton’s Egyptian success came on the heels of another Birch Street successful implementation at the Hilton Paris La Defense. The property immediately saw a positive impact – in one week alone, it identified an annualized savings of $18,400. The resulting supplier adoption process and enforcement of price regulation led to immediate savings that included, for example, a 21 percent price reduction in the cost of photocopy paper, $57,000 savings in hotel stationery, and a two percent savings on the meat supplier’s catalog. This property realized that it had rolled out “more than just a tool,” but rather an all-encompassing easy-to-implement purchasing process that provides transparency and uniformity.
Birch Street’s P2P Solutions Birch Street Systems offers solutions that can be run on a single site or as an enterprise-wide solution to help hotels, restaurants and country clubs identify ways to leverage their collective buying power, as well as enforce IT and brand standards.
Birch Street’s P2P solutions provide comprehensive tools that drive consistent business processes by measuring, predicting and controlling spend. The Birch Street application suite includes e-procurement and RFQ; budget tracking and workflow; recipe management, alcohol monitoring and menu engineering; inventory and receiving; AP automation; spend analytics; and FF&E/capital projects management. Birch Street delivers its solutions over the Internet, using the software as a service (SaaS) model, which reduces the total cost of ownership compared with the traditional method of buying and maintaining enterprise software.
LATEST HOTEL and HOSPITALITY TECHNOLOGY NEWS and TRENDS
Hospitality Upgrade by Siegel Communications, Inc. Located in Roswell, Georgia
Siegel Communications, Inc. | Hospitality Upgrade 678.802.5300 | 70 Mansell Court, Suite 225, Roswell, GA