Case Study
Hospitality Giant Realizes Huge Savings and Gains Efficiencies with Major Digital Transformation
CHALLENGE:

A global leader in the hospitality and vacation ownership industries was spending exorbitant amounts storing more than 3,000 marketing and promotional items in a large, centralized warehouse. The company relied on multiple providers for procurement and distribution management, which only added to the problem; resulting in greater inefficiencies and higher costs—purchases were spread out among supply sources with limited opportunities for higher volume discounts or negotiated rates. Managing its inventory was another costly issue, with lack of control and high obsolescence. There was no centralized, online repository of assets; making it difficult to keep track of items and fulfill orders from its individual resorts. Additionally, there was limited flexibility in the existing business model to accommodate customized orders from resorts wanting to add a personalized touch to printed standard items such as, resort marketing materials, posters, and business operation materials such as, TV guides and menus.

SOLUTION:

It was clear that a major transformation was desperately needed. The company sought the expertise of a seasoned strategic partner with established supplier connections and advanced digital transformation capabilities to clear the way for a shift in its current business model. It realized that relying on the services of multiple providers for warehousing, procurement and fulfillment was both costly and inefficient; switching to one provider to manage it all was the best option. Once Exela was chosen, the hard work began. The first step towards transformation was to introduce a new print on demand system; which meant moving over all of the items currently being stored in the warehouse. An automated procurement system replaced the old way of managing the supply chain; providing a streamlined, web-based platform for selecting vendors; securing quotes; and tracking jobs. And, because it’s vendor agnostic, Exela was able to integrate all third-party applications into its own e-bidding platform to enable supplier categorization, recognized savings methodologies and reporting for the different levels of the procurement process.

Next, to provide the individual resorts with greater ordering flexibility and more options for customization, Exela implemented an intelligent marketing solution featuring a digital storefront for online print and promotional item ordering. Utilizing variable data composition engines, this platform allows for personalized, targeted communications. Now, resorts would be able to choose from a menu of templates and design options to create unique marketing assets for a better customer experience.

RESULTS:

By shifting towards a more digitally-enabled business model, the company realized significant savings, while creating a more personalized, engaging experience for its customers. Through the deployment of its on-demand fulfillment application, it was able to reduce its physical inventory by approximately 70%. And, by consolidating its supply chain management and procurement services, and automating its strategic sourcing operations it was able to reduce the excessive costs incurred every month. The company no longer had to rely on several providers to procure items and secure the best rates from suppliers. With Exela’s bid management capabilities and online procurement system, the company was guaranteed competitive pricing. In fact, within the first year; the company realized a savings of $1.4MM. With the implementation of Intelligent marketing applications, individual resorts (a total of 1,500 end users) benefited from greater ordering flexibility and personalized design options.

Other notable accomplishments include:

  • Development of a powerful web-based solution for the company to access printed communication and promotional items
  • Optimization of the supply chain; resulting in a 25% savings on promotional material for the resorts
  • Reduction in enterprise print spend, translating into significant cost savings for each resort
  • Utilization of intelligent communications to enhance customer experience
  • The procurement of a 10.1” tablet for the resort’s membership program resulted in a savings of $930.000 (35%)
  • The provision of two on-site buyers that are able to react to any immediate need
  • Corporate sponsorship of the company’s flagship golf tournament

By utilizing a cloud-based approach, we were able to provide transparency, while delivering significant cost savings across the company’s enterprise. In all, the company successfully transformed its business by leveraging digitalization and automation for more efficient processes, significant costs savings, and a more advantageous market position.