Case Study

Digital Transformation Strategy Helps Save Costs for Hospitality Giant

Learn how a leading hospitality business benefited with XBP Europe’s digital transformation strategy.

Challenge

A leading company in the hospitality and vacation ownership industries faced significant expenses due to the storage of over 3,000 marketing and promotional items in a large warehouse.

To exacerbate the issue, the company relied on multiple providers for procurement and distribution management, resulting in inefficiencies and increased costs. Purchases were fragmented across various suppliers, limiting the opportunity for volume discounts or negotiated rates. Managing inventory proved to be another costly challenge, with a lack of control and high obsolescence rates.

Furthermore, the absence of a centralised online asset repository made it challenging to track items and fulfil orders from individual resorts. The existing business model had limited flexibility to accommodate customised orders from resorts seeking to personalise printed standard items such as resort marketing materials, posters, TV guides, and menus for their specific needs.

solution

XBP Europe offers a holistic digital transformation strategy

Recognising the urgent need for a major transformation, the company decided to seek the expertise of a seasoned strategic partner with established supplier connections and advanced digital transformation capabilities. It became evident that relying on multiple providers for warehousing, procurement, and fulfilment was both costly and inefficient, prompting the company to opt for a single provider to handle all these aspects. Once XBP Europe was selected as the partner, the arduous task of transformation commenced.

The first crucial step in this journey was the implementation of a new print on demand system, which involved transferring all the items currently stored in the warehouse. This system brought automation to the procurement process, replacing the outdated methods with a streamlined, web-based platform.

The platform facilitated vendor selection, secured quotes, and tracked jobs efficiently. Being vendor agnostic, XBP Europe integrated all third-party applications into its own e-bidding platform, enabling supplier categorization, recognized savings methodologies, and comprehensive reporting at different levels of the procurement process.

To offer individual resorts enhanced ordering flexibility and a broader range of customization options, XBP Europe introduced an intelligent marketing solution featuring a digital storefront for online print and promotional item ordering. Leveraging variable data composition engines, this platform allowed personalised and targeted communications. Resorts gained access to a menu of templates and design options, empowering them to create unique marketing assets that would contribute to an improved customer experience.

Benefits

Benefits with XBP Europe’s digital transformation strategy

The company achieved substantial savings and improved customer experience by transitioning to a digital business and embracing a new digital transformation strategy. Implementing an on-demand fulfilment application reduced physical inventory by around 70%.

Consolidating supply chain management and procurement services, along with automating strategic sourcing operations, reduced monthly costs. XBP Europe’s bid management capabilities and online procurement system ensured competitive pricing, resulting in a savings of $1.4MM in the first year. Intelligent marketing applications provided 1,500 resorts with ordering flexibility and personalised design options.

Other achievements include:

  • Web-based solution for accessing printed communication and promotional items
  • 25% savings on promotional material through optimised supply chain
  • Significant cost savings for each resort through reduced enterprise print spend
  • Enhanced customer experience with intelligent communications
  • $930,000 (35%) savings through the procurement of a 10.1″ tablet for the resort’s membership program
  • On-site buyers to address immediate needs
  • Corporate sponsorship of the flagship golf tournament

Leveraging cloud-based solutions, the company achieved transparency and significant cost savings, positioning itself advantageously in the market through digitalization and automation.

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