Reducing Waste due to Errors and Delays in the Material Procurement Process in the Medium-Sized Hotel Sector in Thailand
Apisara Phuangjan, Panutporn Ruangchoengchum
The procurement process is a vital business operation that includes buying all the resources and items required to achieve the objectives of an entity. Particularly for the administration in medium-sized hotels in Thailand, the accuracy and timeliness of this process are the most worrisome. The current study set out to investigate what factors lead to wastage because of mistakes and delays in the process of material procurement, and to devise full instructions as to how the wastage could be minimized. The study was confined to medium-sized hotel businesses in Thailand. In this regard, the study was designed using a mixed-method approach involving a highly systematized data collection and analysis system both in the quantitative phase for the sample group of 100 respondents by administering questionnaires and in the qualitative phase for the 15 key informants through conducting interviews with open-ended questions and participant observation. The quantified data was examined using a linear regression technique, and for the qualitative data, the tree diagram in conjunction with the ECRS method was used. The findings further reveal elements of procurement management that contribute heavily to waste through errors and delays in the procurement process. The new ECRS technique drastically cut errors from an earlier level of 5.17% to 2.85% and delays in the procurement process from an ineffective 1.85 days to an effective 1.17 days. This result has given pragmatic guidance and useful insights for the industry, particularly for top management of medium-sized hotels.
Keywords: Waste, Errors and Delays, Procurement Process, Medium-Sized Hotel Sector, Thailand
