Procurement & Supply Chain Management for Hotels | with Walt Sheffler

Summary

In this episode of The Modern Hotelier, Walt Sheffer, CEO of Avendra International, discusses his journey from studying accounting to leading a company specializing in procurement services for the hospitality industry. He highlights Avendra's unique approach to hospitality procurement, focusing on personalized service for hotels across all price points. Walt talks about the challenges facing the industry, such as labor shortages, and how Avendra helps solve them through supply chain optimization. Additionally, he explains the company's commitment to sustainability and future global expansion, offering clients innovative solutions and career advancement opportunities.

Takeaways

• 😀 Walt Sheffer, CEO of Avendra, shares his background, from studying accounting at Penn State to shifting into hospitality, ultimately becoming a manager at Marriott.
• 😀 Walt enjoys working in hospitality because of the upbeat environment and the opportunity for associates to have fun while serving guests.
• 😀 Avendra is described as a professional procurement services company, working closely with clients to provide customized product and service options based on their brand goals.
• 😀 Hospitality procurement differs from traditional procurement by focusing on specific needs of hotel clients, aligning products and services with their brand objectives and segments.
• 😀 Avendra serves various segments of the hospitality industry, from luxury to economy, by providing tailored solutions with a focus on both service and product quality.
• 😀 The company has a unique service model with 'at property' and 'above property' teams to ensure a deep understanding of hotel brands’ needs and goals, improving communication and service delivery.
• 😀 Avendra helps hotel clients address challenges like food safety and sustainability by offering products that support these priorities, such as metal straws and sustainable alternatives to plastic.
• 😀 One of the biggest challenges in hospitality procurement is the labor shortage, and Avendra helps by optimizing the supply chain, such as outsourcing labor-intensive tasks like steak cutting.
• 😀 Sustainability is a growing focus, and Avendra helps clients achieve their ESG and CSR goals by offering sustainable alternatives (e.g., metal bottles) and providing tools like dashboards to track progress.
• 😀 Avendra’s customer care is distinguished by its 'hotel people serving hotel people' approach, with field-based experts who truly understand the daily operations of hotel staff and their needs.

Q & A

Who is the guest featured in this episode of The Modern Hotelier?

The guest is Walt Sheffer, the CEO of Avendra International.

How did Walt Sheffer begin his career in the hospitality industry?

Walt attended Penn State University, initially majoring in accounting. Due to limited accounting job opportunities, he transitioned to the hotel school and started as a management trainee with Marriott after graduation.

What does Avendra International specialize in?

Avendra International is a professional procurement services company that works with clients in the hospitality industry to provide sourcing options, product alternatives, and procurement strategies aligned with brand goals.

How does hospitality procurement differ from traditional procurement according to Walt Sheffer?

While traditional procurement often focuses on commodities, hospitality procurement considers the overall guest experience and brand objectives, ensuring that the products and services support each hotel’s unique positioning.

What distinguishes Avendra’s approach to service in the hospitality industry?

Avendra’s team consists of former hotel professionals who understand hotel operations. They provide both 'at property' and 'above property' support, ensuring alignment between hotel brand goals and property-level execution.

How does Avendra assist hotels in dealing with labor shortages?

Avendra evaluates the supply chain and may recommend redistributing labor, such as shifting tasks from hotel staff to suppliers—like using pre-cut steaks from vendors instead of preparing them in-house—to optimize efficiency.

What role does Avendra play in supporting sustainability initiatives within the hospitality industry?

Avendra provides sustainable product alternatives, such as metal bottles instead of plastic, and uses tools like AI and labeling to track and measure clients’ sustainability progress through detailed dashboards.

What is meant by Avendra’s 'at property and above property' service model?

It refers to Avendra’s dual approach: working with corporate hotel leadership to understand brand objectives ('above property') and supporting individual hotels on-site ('at property') to ensure consistency and execution.

What does Walt Sheffer identify as the biggest challenge in the hospitality industry today?

He identifies labor shortages and the difficulty of maintaining adequate staffing and expertise as the industry’s biggest challenge.

How is Avendra expanding globally, and what impact does this have on its team?

Avendra, supported by its parent company Aramark, is expanding internationally by establishing operations in multiple global markets. This expansion provides career growth opportunities for employees and enhances Avendra’s expertise.

How can individuals or companies get in touch with Avendra International?

The best way to contact Avendra is through their official website, where potential clients or partners can reach out for collaboration opportunities.

What does Walt Sheffer emphasize about the hospitality industry’s atmosphere and culture?

He highlights that the hospitality industry is an upbeat, people-oriented environment where both guests and associates can have fun and enjoy their work.