Case Study: When Evaluating Hospitality GPOs, Operational Value Matters Most
Key Takeaways
1. Hospitality procurement success depends on execution, not just technology. Oldham Goodwin found that while procurement platforms and pricing are important, responsive account management, problem resolution, and operational support have the greatest impact on property performance.
2. Centralized procurement drives visibility, consistency, and adoption. Using Avendra's iBuyEfficient™ platform and support resources, Oldham Goodwin achieved purchasing participation above 96% while improving reporting, controls, and supplier coordination across its portfolio.
3. Strategic procurement partnerships create measurable operational value. Beyond sourcing savings, Avendra helped improve supplier performance, reduce purchasing disruptions, streamline FF&E projects, and support more consistent hotel operations.
In hospitality, operational excellence is often won behind the scenes. Guests may never see a purchasing platform or supplier agreement, but they notice when products are unavailable, projects are delayed, or hotel teams are distracted by operational challenges.
For Oldham Goodwin, a hospitality company specializing in the development and management of premium select-service hotels, consistency is a competitive advantage. To ensure its procurement strategy was supporting that goal, the company spent two years evaluating hospitality GPO providers to determine which partner could deliver the strongest combination of value, support, and operational expertise.
The process ultimately reaffirmed its long-standing relationship with Avendra International.
"We evaluated each partner based on total value, not simply technology or headline pricing," said Cole Baker, Vice President of Hotel Operations at Oldham Goodwin. "Avendra stood out because it combines a strong technology platform through iBuyEfficient™ with experienced, accessible people who understand hospitality procurement."
The evaluation reinforced an important lesson.
"Technology alone does not resolve a delivery issue, correct a billing discrepancy, improve supplier performance, or help a general manager navigate an urgent operational need,” said Baker.
Before recommitting to the collaboration, Oldham Goodwin identified several opportunities to improve program performance, ranging from distributor billing terms and credit limits to program alignment for more complex properties. According to the company, Avendra responded with a collaborative, solutions-focused approach.
"They listened carefully, established clear ownership, and worked with us until the issues were resolved," said Russell Graham, Director of Corporate Support, Oldham Goodwin.
The result was greater confidence among property leaders and stronger participation across the portfolio. Today, Oldham Goodwin consistently achieves purchasing participation above 96%.
A key driver has been iBuyEfficient, Avendra's centralized procurement platform. With more than 90% of participating suppliers connected through integrated ordering workflows and punchout catalogs, the platform streamlines purchasing while providing greater visibility, approval controls, and reporting.
"iBuyEfficient allows us to manage procurement as an integrated business process rather than a collection of disconnected property-level transactions," said Graham.
Beyond technology, the collaboration has helped improve supplier performance and simplify sourcing across the portfolio.
Working closely with Avendra's account management team, Oldham Goodwin strengthened coordination with its mainline food distributors through pricing reviews, inventory solutions, and dedicated escalation support. The result has been improved inventory continuity, stronger supplier relationships, and fewer emergency purchases.
"When the right products arrive accurately and on time, hotel teams can remain focused on serving guests rather than resolving procurement disruptions," said Graham.
The company has also leveraged Avendra's FF&E expertise to simplify replacement and project-related purchases. By quickly identifying brand-approved options and streamlining the sourcing process, property teams can move projects forward more efficiently. In one recent project, that approach generated more than $15,000 in savings within a single product category.
For Oldham Goodwin, the experience reflects a broader industry shift. Procurement is no longer simply a purchasing function; it has become a strategic tool for improving consistency, controlling costs, and supporting portfolio performance.
"A GPO should be evaluated on more than contract pricing,” said Baker. “The real question is whether the partner can help your organization implement the program, support your properties, improve supplier performance, adapt to changing market conditions, and consistently convert purchasing scale into operational value."
Explore more client success stories in the Fall/Winter 2026-27 edition of Edge Magazine – North America. Download your copy here.
CASE STUDY: WHEN EVALUATING HOSPITALITY GPOS, OPERATIONAL VALUE MATTERS MOST
FAQs
What should hotel management companies look for in a hospitality GPO?
Hotel management companies should evaluate a hospitality GPO based on technology, supplier network strength, program implementation, account support, operational expertise, and the ability to drive measurable cost savings and portfolio-wide performance.
How can a hospitality procurement platform improve hotel operations?
A hospitality procurement platform helps streamline purchasing, improve spend visibility, automate approvals, strengthen compliance, and connect hotels with preferred suppliers, enabling property teams to operate more efficiently.
How do hospitality GPOs help hotels reduce costs and improve efficiency?
Hospitality GPOs leverage purchasing scale, supplier relationships, procurement technology, and operational expertise to help hotels control costs, improve supplier performance, simplify sourcing, and reduce procurement-related disruptions.
