ospitality Supply Chain
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• Total Supplier Management • Sourcing • Procurement Management • Inventory Management
A STORY OF SUPPLY CHAIN TRANSFORMATION
• Capital Project Accounting • Recipe/Menu Management • POS Management Portal
P RO J EC T PA R T N E R
• Mobile Approval Workflow
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P RO J EC T S P O N S O R S
A STORY OF SUPPLY CHAIN TRANSFORMATION Written by Catherine Sturman Produced by Charlotte Clarke 3
VICE PRESIDENT OF SUPPLY CHAIN LISANNE BOGLE DISCUSSES HOW THE TEAM THINKS ‘OUTSIDE THE BOX’ IN THE DELIVERY OF OKADA MANILA’S PROCUREMENT SOLUTIONS IN THE PHILIPPINES
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kada Manila is a US$2.4bn development that is the largest and most expensive property in Entertainment City, in Manila, Philippines. Set in 44 hectares of prime land, it is positioned as an integrated resort with features that cater to different kinds of people, yet it mainly stands for one thing: entertainment. While it has a casino and gaming area— the largest in the country in terms of size and gaming options—it has a rich array of unique and world-class amenities that truly spoil its guests with choices on how they would like to spend their time, from relaxation to shopping to dining and other kinds of entertainment. Its most iconic feature is the US$30mn The Fountain, which brings select music to life through a fantastic choreography of light and water. Aimed to become Manila’s main tourism icon, this fountain is designed and developed by WET, the same team
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Lisanne Bogle, VP of Supply Chain.
Hair and Makeup by Ms. Maria Consuelo Toreda
Facilitating the Entire Hospitality Supply Chain RedRock Software provides a comprehensive supply chain
• Total Supplier Management
management system for the hospitality industry. Its revolutionary
• Sourcing
source-to-pay product was developed from the ground up using
• Procurement Management
Microsoft.Net and SQL server technology. The Sourcing and
• Inventory Management
Materials Management System (SAMMS) offers all the necessary
• Capital Project Accounting
sourcing, procurement, and cost control means specific to
• Recipe/Menu Management
hospitality using web-based technology and offering a wide
• POS Management Portal
variety of options for large or small enterprises, including cloud
• Mobile Approval Workflow
based hosting. The system is designed to be the supply chain component of any ERP system and provides a modern POS Management Portal to manage and integrate with any point-of-sale system.
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SUPPLIERS BUYERS
RedRock Procurement System • Requisitions • P.O.s • Inventory & Materials • Catalog • Item Master • Warehouse • Recipe / Menu Management • Retail / Outlet Module
BIDSHEET BIDS/QUOTES P.O.
Supplier.Bid eSourcing RFx System • RFx (RFI, RFQ, RFP) • Bids and Auto-Bids • Potential & Existing Suppliers • Bid Evaluation • Sourcing Planning • Global Sourcing • Contract Tracking
SQL Supplier.Bid Supplier Management System • Supplier Registration - Application / Update - Supplier Diversity - Certification Tracking • Supplier Performance Scorecard • Reporting Tools • Email Notifications • Supplier Development Solutions
VENDOR SETUP/MAINTENANCE ERP • A/P Vendor Master • A/P (payments to vendors) • Others
Okada Manila Supply Chain and Supplier Management Fully Integrated System Contact Tom Ren - tom@globalxlr.com
behind the world’s most popular water features in Las Vegas and Dubai. Okada Manila is also home to the country’s first-ever indoor beach club and nightclub, Cove Manila. Enclosed in a glass dome, 100m in diameter and 30m in height, Cove Manila features artificial white sand and can host up to 3,000 guests. Okada Manila is being built against a backdrop of how the Philippines has become a hotbed for investment and one of the fastest growing economies in the world. The government’s sixyear “Build Build Build” construction and infrastructure initiative is set to further attract new and upcoming services here, such as the launch of integrated resorts that contain hotels, retail outlets, spa and leisure facilities, traditional gaming services and much more. Moreover, developers are now catering to an increased
consumer desire to seek a complete experience, rather than spend money on one area of entertainment. “The different kinds of tourists, such as families, are not going to be encouraged to come here if there is no variety of exciting and worthwhile things for them to do,” explains Lisanne Bogle, Vice President of Supply Chain for Okada Manila. “That’s why integrated resorts give an all-encompassing answer: they provide something for everyone. “There are four integrated resorts in Manila: Resorts World, City of Dreams, Solaire and Okada. Traditionally, gaming has been popular with tourists from various Asian countries and Las Vegas used to be the draw. With the advent of gaming in Macau and southeast Asia, the number of tourists to these destinations has increased, especially VIP guests who provide
“Integrated resorts give an all-encompassing answer: they provide something for everyone” LISANNE BOGLE VP of Supply Chain for Okada Manila
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a strong backbone to the entire industry of entertainment and travel. “The region’s economy has grown and expanded in the last several years, which also means an increase in disposable income. Citizens from many countries are able to travel more and explore many sought-after destinations.” Changing attitudes Operated by Universal Entertainment Corporation subsidiary Tiger Resort,
The Deluxe Twin suite at the Okada Manila Resort
Leisure and Entertainment Inc., Okada Manila houses a number of diverse food and beverage outlets, retail, leisure, sports and spa facilities and, of course, traditional gaming services which are open 24-7. Although it is mostly complete, there is still some ongoing construction, and Okada Manila’s procurement team faces a number of challenges in its daily operations. Its vast team is split into three areas to cater for these demands:
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business processes, procurement Thinking outside the box and strategic sourcing, and “We’ve been gradually adding more warehouse, receiving and logistics. real estate to our operations, so In order to ensure competency in we’re in a very hybrid situation,” all areas of the business, there is an Bogle continues. “Not only are we increased need for versatility in both processing the fit out requirements thought and action, as Bogle explains: for the hotel and restaurants, “All members of the procurement team but we are managing the daily need to understand each step in the operational requirements for the procure to pay process and the existing operations.” impact of logistics; whether With such complexity, it is the customs clearance ‘thinking outside of process, the specific the box’ has become items that require the norm for Okada The number paperwork for Philippine Manila. When of integrated Amusement and Gaming ordinary software resorts situated Corporation (PAGCOR) lacked the adaptability in Manila approval and also those required to satisfy its items that have been approved everyday needs, the team by the Philippine Economic Zone looked at alternative solutions. Authority (PEZA) and what additional The implementation of hospitality documentation may be needed once software RedRock has become the order has been placed. There is a essential within its procure-to-pay need for speed, urgency and a lot of solution, which also manages communication to ensure shipments Okada Manila’s growing inventory are not delayed. A small misstep could and is supported by Microsoft result in a delay in handover of an area Dynamics AX for the financials. or a direct offer program not meeting With a campus of this size, the expectations of the guests.” efficiency is important and Okada
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Pre-Opening Logistics Management
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Post-Opening Logistics Solutions
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Asset Registry
TKHS is the market leader in providing logistics services for Integrated Resort developments. The Group specialises in purely catering to the challenging and dynamic pre and post opening needs of the luxury gaming and hospitality industry. www.tkhsgroup.com
Manila maintains onsite warehousing for over five hundred items, including operating supplies and also food and beverage items. The warehouse team manages over 500 SKUs, many of which have different weights and expiration dates. “We’re dealing with many products that do not have a fixed case weight,” Bogle says. “As these cases go into inventory, we need to be able to record the actual incoming weights, the costs and subsequently the average inventory cost to
The Retail Area at the Okada Manila Resort
correctly and accurately calculate the food costs and the recipes. “When we order beef, it doesn’t necessarily come in a fixed case weight, but in an average case weight. However, we get charged by the kilogram, not by the case. You may say that a case is an average of 25kg, but there are times we receive 24.7kg, then the next time we receive 25.3 kg. We have to have a system that manages the ability to calculate the true cost, and also to manage
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WE HELP PEOPLE BE THEIR BEST IN THE MOMENTS THAT MATTER Motorola Solutions is a global leader in businessto-business communications and technology solutions for emergency services and commercial organizations, encompassing both hardware equipment and software applications. As a high-tech company with a global history of 89 years, Motorola Solutions has 14,000 employees in over 60 countries, including the Asia Pacific region where we have been present over the past 40 years with 31 offices in the region including Philippines. Today, our solutions are being deployed throughout the Philippines in sectors including public safety, transportation, oil and gas and hospitality. With innovation ingrained in our DNA, our advanced technology can help organizations to service clients with reliability and security, keep industry workers safe as well as enable hotels and retailers to provide guests with memorable experiences. “Although you won’t always see our technology in the foreground, it’s always in use, helping
emergency services and commercial organizations to work more safely, as well as increase productivity and efficiency,” says Jane Coo, Country Manager, Motorola Solutions Philippines. Okada Manila, an integrated resort covering over 44 hectares of prime land has recently implemented Motorola Solutions TETRA digital two-way radios and WAVE work group communications to connect employees working across diverse operations, such as security, food and beverage outlets, retail, leisure, sports and spa facilities, and 24/7 traditional gaming services. “Digital radios help our staff to enjoy clear, crisp and uninterrupted communication over our vast premises. With such extensive operations, connectivity is crucial to ensure that we provide quality service to our customers. In addition, WAVE helps to link up employees using two-way radios with colleagues at desktop machines, mobile phones, tablets or any other communication device to enable wider coverage”, says Lisanne Bogle, Vice President of Supply Chain, Okada Manila.
www.motorolasolutions.com
our inventory based on what we call catch weight variances,” she adds. “Most large ERP solutions have not been successful in providing a solution for this specific requirement. Additionally, we now utilise a new bolt-on solution to RedRock that has allowed us to increase the efficiency of our supplier registration and accreditation via an electronic supplier portal. Initially, the use of that portal is for our vendors to undergo vendor registration and accreditation. Vendors are provided with a username and password and a link to access the portal. They complete an online application providing us with required information on their company, and
they upload pertinent licenses, permits, insurance documents and financials. The business process team will then verify for authenticity, work with risk management on the financial assessments and conduct background investigations. This online portal has saved us a significant amount of time reducing the process from nearly three weeks to a matter of days. Then, the second part of this solution will allow us to do electronic RFIs, RFQs and RFPs, as it actually ties in with RedRock. All processes within one framework reducing the volume of excel spreadsheets and tender documents and paper files.” “Identifying the right software
“Identifying the right software solution is never an easy task; ensuring it meets the operations’ requirements is key. Technology should work for us, and not the other way around” LISANNE BOGLE VP of Supply Chain
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solution is never an easy task; ensuring it meets the operations’ requirements is key. Technology should work for us, and not the other way around.”
across multiple outlets where possible. This has consequently become vital to restaurant operations to ensure food costs are controlled without endangering the quality and uniqueness of each menu. “We may Reducing product costs use pork belly in multiple restaurants, As more restaurants open, food and and each chef is likely to ask for a beverage requirements increase different specification – bone-in, dramatically. In addition to skin-on, skin-off or boneless preparing meals for more or a combination,” Bogle than six thousand says. “By standardising team members on the specification, we are a daily basis, each able to ensure that we The year that kitchen under Okada have the right volume to Okada Manila Manila prepares its leverage negotiations was founded own menus for its with suppliers. restaurants. The number “Cost reductions come of ingredients slowly grows in many forms, however, we and the specifications become can only take so much cost out of varied. Okada Manila’s Supply Chain the product, so we get creative in is now tasked with not only sourcing looking at different ways of procuring all of these different products but products. Maybe we reduce the also managing costs. Optimisation number of deliveries; the vendor of product specification is an saves on freight and logistics approach that has led the company cost and we can then share those to dive deep into all specifications savings. It’s really thinking outside and work with the F&B department the box and collaborating with in discovering synergy of product vendors; understanding how they
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The Executive Suite at the Okada Manila Resort
do business, how we do business, and how we can work to eliminate some of that excess cost that is added into the cost of goods.” Systematic processes The integrated resort sector in the Philippines is still in its infancy and that means that experienced resources are sometimes limited. Training is key, and finding the right individuals with the right attitude and potential is the starting point at
Okada Manila. As a result, it continues to be committed to undertaking an ongoing talent development drive and deliver extensive training across its operations. “We spend a lot of time working with our teams, whether it be on an individual basis or whether it be in a group setting, to really get them up to speed,” Bogle explains. “If you clarify why things are done, you then get the support which in turn brings a better result.”
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OKADA MANILA
“It’s really thinking outside the box and collaborating with vendors; understanding how they do business, how we do business, and how we can work to eliminate some of that excess cost that is added into the cost of goods” LISANNE BOGLE VP of Supply Chain
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In addition to training, ensuring transparency is something that Bogle stresses is of utmost importance within Okada Manila’s procurement functions. Transparency of vendor selection, the tender process, the award are all non-negotiable. Processes and controls are also vitally important to the success of Supply Chain within the organisation. “We educate our BUs on our SOPs, we are constantly evaluating our SOPs as the business changes to ensure that we are covering all angles,” Bogle notes. “We do not want to strangle the operation, but we need to ensure that all processes are adhered to. Accountability, visibility and responsibility are buzzwords for the supply chain team. Strict regulations have also ensured that compliancy continues to be an essential area of focus within Okada Manila’s procurement team.”
Red Spice at the Okada Manila Resort
Long-term growth There are more exciting times ahead for Okada Manila and the Supply Chain team. Nonetheless, despite the challenges, Bogle is enthusiastic about the growth of integrated resorts and Okada Manila’s long-term potential. “Our guests are not looking to sit at a table for 24 hours nonstop. They’re looking for entertainment,” she concludes. “They’re looking for that experience, and that is something that we will give them.”
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New Seaside Drive, Entertainment City, ParaĂąaque City, 1701, Metro Manila, Philippines Tel: +63 2 888 0777 www.okadamanila.com