The hotel procurement process, step by step.
From the chef's request to the supplier's payment: the steps, the documents, three-way matching and the controls that stop overpaying.
By the Tivuzo team · Updated
The hotel procurement process runs from need to payment: a department raises a purchase request, a manager approves it above an agreed limit, purchasing gets quotes or uses the agreed supplier price, a purchase order is sent, the storekeeper receives the delivery against the order and records a goods received note (GRN), the supplier's invoice is matched to the order and the GRN (three-way matching), and only then is it paid. Separating who orders, who receives and who pays is the most important control.
The process, step by step
- Identify the needStores below reorder level, a chef's list for the weekend menu, a housekeeping request for amenities, a repair.
- Purchase requestThe department head writes what, how much and by when. Better in the system than on a scrap of paper.
- ApprovalAbove a set amount (for example, KSh 50,000) the GM or owner approves. Below it, the purchasing person can proceed.
- Supplier and priceUse the agreed supplier and price list, or get two or three quotes for anything new or large.
- Purchase orderSent to the supplier with items, quantities, prices, delivery date and place.
- Receiving and GRNThe storekeeper checks the delivery against the order, counts or weighs it, rejects poor quality and records what was received.
- Invoice matchingThe supplier's invoice is checked against the PO (price) and the GRN (quantity).
- PaymentApproved bills are paid on their due date, by bank, mobile money or cash, and recorded.
Three-way matching
| Document | Proves | If it doesn't match |
|---|---|---|
| Purchase order | What you agreed to buy, at what price | Price on the invoice is higher than agreed. |
| Goods received note | What actually arrived | Invoice charges for items that never came or were rejected. |
| Supplier invoice | What the supplier is asking for | Hold the payment and query it. |
This one check stops most overpayment: duplicate invoices, short deliveries billed in full and quiet price increases.
Controls that matter
- Separate people order, receive and pay
- An approval limit written down, and kept
- Agreed price lists for regular suppliers, reviewed every few months
- Deliveries checked at the door, not "signed now, checked later"
- No payment without a matched invoice
- Petty cash for small, urgent buys, with receipts
For remote properties
Lodges and camps far from town add lead time and transport to the picture. Set reorder levels that cover the time to the next supply run, consolidate orders by supplier and route, and plan for spoilage on the way. A missed item can mean a week without it. See lodge and camp software.
Numbers to watch
| Number | Why |
|---|---|
| Spend by category (food, beverage, amenities, maintenance) | Where the money goes. |
| Price change on top 20 items | Creeping prices are the silent margin killer. |
| Short or rejected deliveries by supplier | Who to talk to, or replace. |
| Orders waiting for approval | Bottlenecks that cause emergency buying. |
| Bills due this week | Cash planning. |
In Tivuzo
Department heads draft requests, orders above your limit wait for approval, suppliers' price lists fill in prices, deliveries are received against the order into the right store, and bills are checked against what was received before payment. See Tivuzo procurement and hotel stores control.
Hotel procurement questions
What is a GRN in a hotel?
A goods received note: the record of what was actually delivered and accepted, made when stock is received. See the glossary.
Who should approve hotel purchases?
The GM or owner above an agreed amount; department heads within their budget for routine items.
How many quotes should a hotel get?
Two or three for new suppliers, large orders and capital items. Regular items run on agreed price lists, reviewed periodically.
What is the difference between procurement and purchasing?
Purchasing is placing orders. Procurement is the whole cycle: need, approval, supplier choice, order, receiving, invoice matching and payment.
Last updated by the Tivuzo team.