and available 99 % -plus of the time . COVID and its challenges have shown how tightly ‘ wired ’ the supply chain was and how a few bottlenecks can have material effects throughout the supply chain .
Zeitner : Just a good reminder that every time you think you have seen it all , you are reminded how quickly things can change . I have been in the hospitality business for over 30 years and never seen the current challenges we are all experiencing in freight movement .
H : Any silver linings ? Long : The willingness of owners to look at a total delivered cost rather than just the initial purchase price of an item has increased . Because the supply chain was so overwhelmed , owners were willing to look at options they had previously considered too expensive . This has opened the door for manufacturers to creatively propose solutions to problems created by shipping bottlenecks . We have found that some of those solutions will continue to be beneficial even after the shipping challenges subside .
McIntyre : Decision-making across the supply chain has become much quicker and more agile . Decisions that may have required a few weeks of deliberation now need to be made in just a few hours to help customers .
We ( Avendra , our suppliers , our customers ) have learned to engage and get the work done while working remotely . We look forward to meeting in-person , but it is nice to have the engagement that Zoom or Teams calls brings .
Zeitner : Every experience is a learning opportunity . How we have navigated this challenge will make us better at problem solving and communication in the future .
Slaw : Nope ! I ’ m curious to hear how manufacturers respond to this . For example , since we ’ re seeing many vendors open manufacturing plants in new locations , are they finding that diversification a good long-term business strategy ?
Shahid Javed : Supply chain challenges have brought ownership groups , hotel brands and operators closer and has enabled even better coordination .
H : Any final comments ? Long : The supply chain issue has put a severe strain on the hospitality project industry . The supply chain disruption highlighted a lack of project expertise . Over the last decade talented designers , purchasing agents , and project managers have left the hospitality industry for other industries . Just like in operations , the project side of the hospitality industry is playing catchup on developing new talented leaders .
Owners and operators also need to be very careful about their vendors . Hotel companies had a year and a half of severely depressed occupancy and rate and have had to make severe cuts in order to survive . The vendors are still in financial trouble because project volume and orders are lagging behind the return of guest travel . Vendors that are heavily reliant on the hospitality industry still have not recovered are pose a risk financially .
Zeitner : Our industry is really a just-in-time industry . Even ‘ standard ’ products are not just sitting on a shelf somewhere , but need to be produced , shipped , warehoused , installed , etc . Everything along this journey has a major impact on a project .
DECISION-MAKING ACROSS THE SUPPLY CHAIN HAS BECOME MUCH QUICKER AND MORE AGILE . DECISIONS THAT MAY HAVE REQUIRED A FEW WEEKS OF DELIBERATION NOW NEED TO BE MADE IN JUST A FEW HOURS TO HELP CUSTOMERS .
CHIP MCINTYRE