Shaner Hotel Group
Paul Francisco, Senior Vice President, Operations
Dipi Sawhney, Director of Operations
Shaner Hotel Group, founded in 1983 with one franchise hotel, has grown to include 23 hotels with 4,000 rooms in 15 states representing seven hotel brands, including Hilton, Radisson, Intercontinental and Marriott. In addition, Shaner Hotel Group owns and operates Shaner Business Solutions that provides financial reporting and payroll services to owner-operated and growing companies looking for practical and cost effective accounting solutions.
The management staff at Shaner quickly understood the value proposition of Avendra. As North America’s largest hospitality purchasing organization, Avendra negotiates contracts with leading suppliers totalling almost $3 billion in annual volume. Avendra customers deal directly with the suppliers and manage their own purchasing process - offering a level of control not available with other purchasing groups. Since all of the Shaner hotel properties purchase autonomously, Avendra’s expertise in the various brand offerings was attractive. It provided both a level of quality control and a form of convenience for property purchasing staff.
In the end, the group found Avendra’s offering stronger overall. Not only was the pricing more competitive, “We felt like Avendra’s experience with two of our major brands formed a critical link,” says Paul Francisco, senior vice president.
Seeing Results
Projections for cost savings were realized through Avendra over the next year. In 2002, the Shaner Hotel Group saw a significant drop in purchasing expenditures. According to Dipi Sawhney, Director of Operations, “We were very pleased with the results in the food & beverage category, company-wide.”
Another area that provides an example of the value Avendra brings is the back office category - administrative services and supplies.
While Shaner was accustomed to working with the price and delivery advantages of a national account, Avendra’s prices in office supplies have exceeded their expectations. Shaner has realized a 15% savings category-wide, and a 30% savings in toner and computer supplies when compared to the prices previously paid under their pre-Avendra national account for office supplies.
Has the transition been challenging? “All changes are challenging,” comments Paul; “however the bottom-line effect of using Avendra makes the change justifiable and superior to our old way of purchasing.” In addition, Dipi appreciates the hands-on attention from the Avendra staff. “I talk to them almost every day. They are so concerned that we are getting what we need to make the most of our relationship with Avendra and the Avendra suppliers.”