Wyndham International, Inc. (NYSE:WYN) has awarded Florida-based GoCo-op, Inc. a contract to develop and implement a comprehensive online procurement system that will enable its 300 hotels and resorts to conduct their purchasing via the Internet. Financial terms of the contract were not disclosed.
GoCo-op, a leading developer and host of Internet-based procurement systems, will create a customized private online procurement system, host the system on its servers, provide training, and make the system available to each of Wyndham`s owned, leased, managed and franchised hotels. The system is scheduled to be operational April 2000.
The procurement system will enable Wyndham hotel staff—who currently purchase more than $500 million annually—to buy operating supplies, equipment and services from thousands of approved suppliers. The system will handle all aspects of procurement, ranging from product selection to required shipping directions.
Unlike many other procurement solutions, the new GoCo-op online system will be rapidly deployed and seamlessly integrated with Wyndham`s SAP enterprise resource system, enabling various departments to coordinate accounts payable, purchase orders, goods receivables, and other functions, GoCo-op officials said.
“The innovative GoCo-op system is a major step towards our goal of improving operational efficiencies. Our new procurement system is expected to help ensure company-wide compliance with its national purchasing programs while reducing the administrative burden associated with purchasing and managing inventory,” said Fred J. Kleisner, president and chief operating officer of Wyndham. “This type of technology-based purchasing management is an important component of our strategy to streamline our operations while improving the speed in which we conduct such transactions.”
According to Aberdeen Group, a Boston-based Internet research group, online purchasing provides real saving benefits to the buying organization. Administrative costs are reduced by up to 90 percent, inventory costs by up to 25-50 percent, and purchasing costs by 15-25 percent or more by eliminating off-contract purchases and improving processing efficiencies. The hotel community currently spends $107 billion on procurement expenditures annually.
“Wyndham`s system will be one of the most comprehensive online procurement solutions in the hotel industry,” explained Chris Cogan, chairman and chief executive officer of GoCo-op. “We are using the unique combination of our purchasing background, technological expertise, and hotel industry experience to create a total solution that will greatly reduce the cost and time associated with Wyndham`s overall buying process—freeing up their resources for other more valuable hotel functions.”
Wyndham International, Inc. is one of the world`s largest hospitality and lodging companies. Through its proprietary brands and management services division, the company offers primarily upscale and luxury hotel and resort accommodations in the United States, Canada, the Caribbean, Mexico and Europe. Headquartered in Dallas, Wyndham International owns, leases, manages and franchises more than 300 hotels totaling more than 70,000 rooms. For more information, visit www.wyndhamintl.com.
GoCo-op develops and hosts Internet-based procurement systems and vertically integrated, business-to-business trading communities in the hospitality, food service, healthcare and Fortune 2000 markets. GoCo-op offers industry professionals a best-in-class, end-to-end purchasing solution, along with premium content and community features such as up-to-date global industry news, job listings, training opportunities, forums and bulletin boards, closeout sales and auctions, and the ability to post request for proposals (RFPs).