Crown Resorts Limited
Embedding Quality in Procurement
IN ASSOCIATION WITH
© Donaldytong
DIGITAL REPORT 2020
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Embedding Quality in Procurement DECEMBER 2020
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CROWN RESORTS LIMITED
Thomas Tuszynski, Head of Procurement – Goods at Crown Resorts, about how the company adds value for its customers by ensuring curating quality throughout its supply chain
F
ounded in 2007, Crown Resorts consists of a mix of hotels, events, conferencing, theatre, gaming, and restaurants across
two properties in Perth and Melbourne. With a mission statement around “creating memorable 147
experiences”, the company instills its core values at every level of the business, particularly as it gears up to open Crown Resorts Sydney in the next 8-12 months. According to Thomas Tuszynski, Head of Procurement – Goods, the company aims to bring value to the community. “There has to be a level of local provenance,” he explains. “My team and I are making regular trips to Sydney to find the suppliers who can bring that uniqueness to the property and a sense of community.” Tuszynski has over 20 years’ experience in the procurement field, with the last seven at Crown Resorts. “One thing I like about procurement is you don’t realise how much value you add to the community and the industry,” he says. “I love
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CROWN RESORTS LIMITED
“ We visit manufacturers ourselves to validate and get a sense of where the item is coming from” — Thomas Tuszynski, Head of Procurement – Goods, Crown Resorts
continues Tuszynski. “We invest that time to go meet the producers and understand their practices.” Crown Resorts ensures quality by taking advantage of the assets it already has available. “Crown has given me great opportunities to innovate in a procurement function,” states Tuszynski. “It has more flexibility and
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negotiating terms that are mutually
creativity than most companies.”
beneficial and create value.”
When Tuszynski first started at the
Tuszynski says that, in partner-
company, its two properties oper-
ships, he looks beyond transactional
ated on a decentralised procurement
supplier-customer relationships,
model. Within nine months, his team
seeking parties interested in grow-
shifted into a centralised procurement
ing alongside Crown Resorts. “One
division, leveraging the common-
thing we manage is very good supplier
alities in supplies between Perth and
relationships, trying to go deep,” says
Melbourne. “We were finding new
Tuszynski. He is confident in the value
ways of delivering value rather than
of face-to-face interaction. “When
thinking in isolation,” he continues.
there’s an opportunity to go see a
With over 40 restaurants across
producer in another country, I take it,”
DECEMBER 2020
two properties, and more to come
Crown Towers Awarded Forbes 5 Star Rating CLICK TO WATCH
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1:34
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E X E C U T I V E P R O FILE :
Thomas Tuszynski Title: Head Of Procurement – Goods
Industry: Hospitality
Location: Greater Melbourne Area A visionary procurement leader with over 15+ years experience in working across various categories in the Automotive, FMCG & Casino industries. Areas where I’ve added value to organisations are in building high performing teams, implementing solutions to balance operational business priorities and strategic category outcomes, negotiating long term sustainable supplier agreements, establishing formal processes to improve supplier relationships/value and creating innovation in the supply chain whilst reducing overall business risk. busi ne ssc hi ef . a s ia
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CROWN RESORTS LIMITED
once Sydney opens its doors, Crown Resorts optimises spending by buying in bulk and consolidating brands for base kitchen ingredients. “We work with our chefs to choose the most premium ingredients, then go for critical mass and volume to negotiate prices,” Tuszynski says. When an innovation opportunity crops up, Crown Resorts takes it. It is working alongside its chief stakeholders to find a solution for a food quality problem: employing a chef on the load153
ing dock for all quality assurance (QA) inspection at its Melbourne property. The role reduced quality issues by 66% and ended up replicated for the Perth and Sydney locations. Crown Resorts has also been able to
tempers by being compliant and risk driven. With a catalogue of over
minimize food waste by taking advan-
30,000 items, the company relies
tage of opportunity buys to feed its
on technological tools. Changing
12,500 members of staff, which it does
to barcode scanning has allowed it
complementary. “We have to be on our
to “take the supply chain to the next
toes to ensure we take advantage of
level.” Force to Pay (F2P) systems
opportunities when they occur,” says
let the company do due diligence for
Tuszynski. “But also when something is
its supply partner onboarding pro-
about to hit us and have a risk manage-
cess and manage its contracts and
ment plan to execute.”
spend analytics. “The tool has given
The food industry can be extremely volatile, something Crown Resorts DECEMBER 2020
us good data and lets us effectively manage our catalogue,” Tuszynski
154
says. Its supply relationship tool
work actively on their own brand’s
develops a score for all suppliers
marketing and activation on premise,
based on performance. “We have
growing supply volume in a way that
that record forever,” he continues,
is mutually beneficial.
“we can look at performance over
Partners also bring expertise. M&J
time and reward suppliers who per-
Chickens approached Crown Resorts
form consistently.”
seven years ago to propose supply-
Considering the food industry’s
ing all the company’s poultry, which
volatility, partners like global consuma-
was previously provided by its meat
bles supplier Huhtamaki, which bring
suppliers. As a chicken expert, M&J
assurances around pricing and quality,
was able to connect with chefs to
are extremely valuable. Meanwhile,
improve servicing, and work alongside
innovators like partner Byron Beer
Crown Resorts to solve challenges busi ne ssc hi ef . a s ia
SAME AGAIN Yep, every single time. At M&J that’s what we pride ourselves on. Every delivery, every chicken cut, every order. As the chicken supplier with all the quality accreditation you need, our chickens ALWAYS meet our strict quality standards. So you, and your customers, can rest easy. Same chicken…again. LEARN MORE
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A little something we made
IT’S THE LITTLE THINGS THAT MAKE A DIFFERENCE
“ We have to be on our toes to ensure we take advantage of opportunities when they occur, but also when something is about to hit us and have a risk management plan to execute” — Thomas Tuszynski, Head of Procurement – Goods, Crown Resorts around pricing and product availability. Searching for quality can often come at a high cost. As such, Crown Resorts values premium relationships like the one with sourdough bread manufacturer Noisette, which can produce high-quality bread using traditional methods in the large volumes the company requires. “As a five-star property, quality is something that has to be at the forefront of everything we do, from ingredients to service,” Tuszynski
says. To ensure this, Tuszynski’s team runs fortnightly meetings with the stakeholders at Crown Resorts who deal directly with customers, collaboratively planning ways to enhance customer value. Part of this bid for quality includes embedding the supply chain with ethical sourcing and best practice. Crown Resorts goes through extensive due diligence when onboarding new suppliers, enquiring about environmental status and compliance with modern slave labour legislation. It does random QA checks at the docks to ensure
2007
Year founded
$368mn + Revenue in Aud dollars
30,000
Items in the company catalogue busi ne ssc hi ef . a s ia
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CROWN RESORTS LIMITED
“ We were finding new ways of delivering value rather than thinking in isolation” — Thomas Tuszynski, Position and company 157
Live a Little Merrier CLICK TO WATCH
DECEMBER 2020
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0:15
158 proteins meet specifications. It also
few years, the company is looking into
meets regularly with top suppliers and
how it can ensure it continues to add
risk suppliers, discussing innovation
value through that. “Crown is going
and improvement to create greater
from strength to strength,” concludes
transparency along the supply chain.
Tuszynski. “We have the right mix of
“We visit manufacturers ourselves to
people, leadership, and strategy to
validate and get a sense of where the
make our vision happen. The next five
item is coming from,” he explains.
years represent a very exciting time
Over the next three to five years,
for Crown.”
Crown Resorts is looking to optimise its opportunity buys by making a freezer into a warehouse; this will allow it to increase storage capability and reduce how much food goes to landfill. As food inflation rises over the next busi ne ssc hi ef . a s ia
LEVEL 3 CROWN TOWERS 8 WHITEMAN STREET SOUTHBANK VIC 3006 T +61 3 9292 8871
www.crownresorts.com.au
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