HSM Insights

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Supplying Expertise: Who is HSM?

January 2021

Hilton Supply Management is a global procurement powerhouse, leveraging our size and reach to drive economies of scale to forge partnerships with best-in-class suppliers and negotiate industry-leading prices on the products and services your business needs most. When it comes to supply chain partnership, we are the experts. Wondering how HSM became the industry authority in supplying expertise? Well, you are in the right place.

The scale of HSM is in a category of its own when it comes to size, savings, service, solutions and experience. While HSM is the world’s only truly global hospitality procurement organization, we are well-equipped to service both hotel and non-hotel businesses. Backed by more than 11,000 properties around the globe using our programs, HSM leverages billions in spend power and supplies 120+ brands in 121 countries. We also have a vast network of more than 1,100 suppliers that go through a rigorous qualification process and must meet our sustainability and due diligence standards. With an award-winning Supplier Diversity program, HSM has partnered with more than 4,500 businesses owned by women, minorities, veterans and LGBTQ individuals. We believe in the power of relationships.

Partnering with HSM can benefit your business through extensive savings, unparalleled support, anywhere analytics and sourcing in every major category. Historically, HSM customers have experienced up to 15% savings across categories. We also offer a dedicated help desk, strategic account management and field resources to ensure our customers are well-cared for and taking full advantage of our services, like supply chain-savvy software. Leading-edge technology and our cloud-based eProcurement platform allow our customers to monitor trends, access real-time project reports and simplify the purchasing process at any time from anywhere. And when it comes to sourcing, we negotiate the best possible deals in every major category and offer 60+ service contracts, from elevator maintenance to waste management and pest control.

So, who is HSM? We are your friendly experts in the procurement industry who are here to offer unparalleled value, solutions, support and service to those in the hospitality business and beyond. Supplying Expertise – it’s what we do.



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HSM Supplier Diversity Summit: Connections and Community

December 2020

On December 10, Hilton Supply Management hosted the second annual Supplier Diversity Summit to bring together Hilton leadership, industry experts and our diverse supplier community. To kick off the event, HSM President and Global Head, Anu Saxena, highlighted the fact that underneath all of the major disruptions of 2020 – the global pandemic, natural disasters, social and political unrest – there have been opportunities for growth concerning diversity. This is also most certainly true within the supply chain.

In today’s business, a corporate commitment to diversity is essential if we want our supply chains to reflect those who live and work in the communities we serve, especially within the hospitality industry. The purpose of the Supplier Diversity Summit is to bring together those who are already a part of our diverse supplier community and those who are committed to furthering the important work of moving supplier diversity forward. This included engaging sessions, panels and breakouts with CEOs, senior vice presidents, founders and general managers from across the industry. HSM was also fortunate to partner with the Women’s Business Enterprise National Council (WBENC) to bring the summit to life, as well as the WBE Pacific Northwest Cookie Company who provided sweet treats that accommodated multiple dietary restrictions.

Hosting events like the Supplier Diversity Summit underscores HSM’s commitment to engaging, supporting and creating business opportunities in the local and global communities where we work and travel. HSM’s Supplier Diversity program is a large part of this priority. In the past 10 years, we have cultivated relationships with more than 3,000 women-, minority-, veteran- and LGBTQ-owned businesses, and our supplier spend with these types of businesses has reached more than $593 million. Our Supplier Diversity program has evolved into its own unique brand under HSM, not only buying from diverse suppliers, but also guiding, mentoring and empowering them. In 2020, these initiatives led to Hilton being ranked #1 for Supplier Diversity by DiversityInc.

It is not only important to us that we’ve been successful so far, but we want to continue, to evolve and to strengthen the work we are doing towards increasing supplier diversity. To do this, we will continue to innovate and work closely with our suppliers to identify how we can best serve and empower them. The CleanStay initiative was Hilton’s response to cleanliness and safety concerns that had to be addressed for guests to feel comfortable returning to hotels. The program, from inception to launch, relied heavily on the innovation, flexibility and partnership of suppliers.

While numerous big events from the past year have caused severe disruptions within the supply chain, they have also forced us to innovate and rely on important relationships within our networks of suppliers. These events have also presented us with opportunities for strengthening these networks to be more representative of the local and global communities we serve. HSM is committed to furthering supplier diversity through building strategic partnerships, empowering diverse suppliers and hosting meaningful events, like the Supplier Diversity Summit. It is our fundamental belief that by working in partnership, making connections and building community, together we can make a difference.



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HSM Helps Activate History of Hotel

December 2020

Built in 1882, the Tudor-style Hotel Roanoke has long been a gem of the city’s quaint and bustling downtown. Part of the Hilton Curio Collection, this property has historical ties to the Virginia Tech Foundation and the City of Roanoke and is listed on the National Register of Historic Places. So when talk of renovation began, there was an understanding that changes were needed to provide guests with contemporary comforts while celebrating the historical significance of the property. The hotel soon brought HSM on board to help achieve this exciting and momentous task.

Working with hotel ownership, designers and suppliers, HSM procured furniture, fixtures, and equipment (FF&E) for the “1882 Lobby Bar” renovation. This piece of the project included multiple commodities, including custom upholstered softgoods, custom casegoods, custom mirrors, light fixtures, patio furniture and custom drapery. Leveraging its purchasing power, HSM was able to secure incredibly aggressive pricing while ensuring the integrity of the design which in the end provided significant cost savings.

In addition to sourcing products and securing savings, HSM offered value in managing the process to the property team by providing tracking and support. With daily monitoring, HSM managed all orders to ensure that they were placed on-time, approved by the customer and delivered without any surprises. HSM also provided pre- and post-delivery support, presented the owner with weekly summaries and was available for all questions that arose throughout the project.

Translating the design of the “1882 Lobby Bar” for an incredible re-opening, HSM successfully delivered cost savings that exceeded expectations by leveraging their hospitality supplier relationships. The project was completed on time and under budget and successfully achieved the desired balance of history and modernity. With beautiful millwork and a metal canopy, the space reminds guests of a 19th century railway ticket station. The ceiling is painted to resemble a night sky from that era, and the locally sourced cocktails and dishes bear names from days gone by.

Hilton Supply Management’s FF&E Project Procurement team was honored to be a part of this project, which helped to restore a legendary property that makes a significant impact on the city of Roanoke and is special to both local residents and visiting guests.

Curious to see how the project looks today? Take a video tour here.



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Driving Responsible Sourcing: Sustaining Our Commitment to the Planet

November 2020

As our founder Conrad Hilton once said, “It has been, and continues to be, our responsibility to fill the earth with the light and warmth of hospitality.” And 101 years later, Hilton and HSM realize that a big part of keeping that promise involves helping to protect our shared planet. That’s why through the Hilton Travel with Purpose program and HSM’s newly-formed Global Responsible Sourcing Advisory Group, we are committed to helping the world remain healthy and vibrant for future generations.

As responsible partners to the communities in which we live and work, Hilton is redefining responsible travel by driving social and environmental change across its operations, supply chain and community through its Travel with Purpose program. This initiative represents Hilton’s corporate responsibility strategy to drive responsible travel and tourism globally. With it, we have set 2030 goals to halve our environmental impact throughout our value chain by conserving resources in our hotels, reduce the environmental footprint of our supply chain and collaborate with our local communities to invest in projects that contribute to environmental stewardship and resiliency.

HSM recognizes that sustainable practices at hotels often begin with responsible sourcing within the supply chain. That's why we are constantly looking at ways to become more environmentally friendly, whether that means investing in sustainably sourced seafood and cage free eggs or developing alternatives to plastic straws and delivering them to thousands of hotels around the globe. As the innovation and logistics center of Hilton, HSM plays an integral part in delivering on Hilton’s promise to Travel with Purpose. Under this program, we are focused on both our environmental and social impact—not only helping our hotels drive improvements in how they manage energy, water, and waste, but also catalyzing economic opportunities, promoting human rights and investing in people and local communities.

To further this work, HSM recently launched the Global Responsible Sourcing Advisory Group to identify gaps in existing efforts and to execute new opportunities to advance our broader sustainability goals. The cross-functional responsibilities of this group include establishing foundational policies, external reporting, technology integration, communication alignment and corporate responsibility. Through Travel with Purpose and the creation of this new advisory group, HSM seeks to create positive environmental and social impact across our operations, supply chain and communities. We will continue to pursue best-in-class operational excellence, engage our guests and Team Members and use our innovation and influence to make meaningful differences in the destinations and communities in which we operate.



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How can HSM Strategic Accounts Benefit You?

November 2020

HSM’s Strategic Accounts team is like having your own personal supply chain entourage. We provide customers with a trusted, strategic team of advisors to help make sure that your business is taking full advantage of all of the programs, technologies and customer support that HSM has to offer. If the entourage metaphor isn’t working for you, think of Strategic Accounts as consulting partners, offering your business both top-level, strategic planning and individualized, property-specific support. 

At the above-property level, Strategic Accounts offers support for owners and management companies that includes reporting, updates and portfolio-level support. Our business reviews supply in-depth, per-property spend analysis to help ensure compliance, provide accurate performance reporting and drive deeper savings. Our customer alerts offer real-time updates on commodity cost outlooks, product and commodity supply alerts, food safety alerts and new supplier bulletins that provide a high-level overview of newly-signed contracts. Sharing these alerts, along with new product development and testing, can be especially important during highly volatile times.  

Our property-level tactical support for hotels starts with HSMx as a first point of contact for all things ordering- and supplier-related. This includes quotes for guestroom appliance and kitchen equipment, OS&E and Protective Equipment resupply, help identifying cost savings opportunities, FF&E renovation project procurement and serves as an escalation point for supplier opportunities. Each of our customers is also assigned a geographically-focused account manager to leverage opportunities for targeted supply chain solutions, provide unparalleled service, add procurement expertise to your portfolio and drive value through engagement. In relation to purchasing, we also offer support for our eProcurement system, which offers one-stop shopping with digital supplier catalogs, easy access reporting and the ability to add additional modules, such as inventory, accounts payable and receipt management. 

As you can see, the “strategy” in Strategic Accounts is evident. Our team can help yours with both strategic and tactical support to ensure that you not only have access to the programs, technology and support you need, but also to the assistance that will help you optimize HSMs services and maximize your results. 



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Protective Equipment: Can Healthy Supply Chains Help Keep People Safe?

October 2020

It’s not news that in early 2020 protective equipment (PE) was in short supply, with numerous industries trying to secure limited quantities of products. Manufacturers of items like face masks, disposable gloves and hand sanitizer simply can’t keep up with the demand. With priority being given to healthcare and government institutions, it has become even more difficult for hotels to get their hands on the important items that help safeguard employees and guests. HSM has responded to these challenges by doing what we do best – leveraging supplier relationships, negotiating premier pricing and sourcing the items our hotels need most.

The immediate and far-reaching disruption COVID-19 has caused to the PE market presents two big challenges for procurement, increased prices and decreased supply. At the onset of the pandemic, there was a frenzy to obtain protective equipment, and as a result, prices soared. Since then, disposable face mask pricing has fallen considerably as supply becomes more readily available. However, for disposable gloves and sanitizer product refills, demand continues to outpace production capabilities; therefore, prices are still high and products are scarce. The globally constrained glove supply is projected to continue through Q1 of 2021, and consumers will experience higher glove prices compared to the past six months. While PE supply constraint and price escalation are likely to be ongoing problems, HSM is using strength and strategy to help hotels get what they need to ensure the well-being of team members and travelers.

With industry-leading initiatives like Hilton CleanStay in place at hotels, HSM understands and is responding to the urgent need for protective equipment products. We have built a strong and resilient supply chain to procure various PE supplies, including face masks, gloves, disposable protective wear, eye protection and hand sanitizer.  To establish a robust, long-term sustainable supply chain, we carefully evaluated manufacturing and distribution capabilities, pricing and commercial terms, and additional criteria, such as financial stability, experience and clientele, adherence to specifications and overall quality. As a result, HSM has partnered with multiple established suppliers for each product category, yielding significant savings for our properties.

Within our PE supply chain, HSM customers are already enjoying positive outcomes, and we are continuing to monitor the market to provide sourcing solutions. While the worldwide demand for protective masks and respirators is at an all-time high, manufacturers have responded by increasing production, resulting in ample supply in the marketplace and significantly reduced pricing compared to the onset of the pandemic. HSM offers multiple options for cloth reusable masks, as well as disposable masks, at competitive price points. HSM has also identified sources of refillable sanitizer dispensers, along with accompanying bulk sanitizer gel product, and continues to monitor the disposable glove marketplace to capture the most competitive pricing available.

During this time, HSM is working hard on behalf of owners to lessen the impact on their hotels, to provide regular updates with details of all terms negotiated with our suppliers and to offer resources for other COVID-19-related supply chain information. We understand the importance of sourcing PE items because they play a key role in keeping people safe. HSM will continue to focus on the health of your supply chain, so our customers can focus on safeguarding the health of their teams and guests.

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