In a significant move to modernise its procurement processes, Level5 Hospitality has adopted Reeco, an AI-driven procure-to-pay platform, across nine of its properties in the United States, with plans for further implementation in the future. This strategic decision comes as hospitality businesses face increasing pressure to enhance operational efficiency and streamline supply chain management.
Nathan Moffatt, Senior Vice President of Accounting at Level5, expressed that the motivation behind integrating Reeco stemmed from challenges associated with outdated procurement systems. “We initially turned to Reeco to solve some frustrating inefficiencies with our old procurement systems,” he stated. “But what we got was a total upgrade.” According to Moffatt, Reeco has not only modernised the procurement process but also significantly enhanced service levels, positioning the platform as a vital partner in their operations.
The Reeco platform provides comprehensive visibility and control over procurement activities, covering essentials such as food and beverage supplies and cleaning materials. This all-in-one system allows procurement teams to manage orders, inventory, and invoices through a unified interface, effectively streamlining operations and reducing the time spent on manual tasks.
Henrik Shimony, CEO of Reeco, highlighted the proactive nature of their technology, which illuminates previously unnoticed inefficiencies within procurement processes. “This visibility lets Level5 get ahead of problems instead of constantly reacting to them,” he noted. This shift allows Level5 to not only focus on operational excellence but also on fostering stronger vendor relationships and ultimately enhancing guest experiences.
The platform’s capabilities are underscored by its AI-powered Purchase & Receive and Accounts Payable modules, which ensure real-time updates on pricing and inventory. This technology greatly simplifies financial monitoring by automating tasks like general ledger coding based on historical patterns, thereby integrating seamlessly with existing accounting systems and significantly cutting down processing times and error rates.
Reeco’s expansion is not limited to Level5; the company has recently secured $10 million in funding, aimed at improving its platform further and expanding services. This investment is indicative of broader trends in the hospitality sector, where operators are increasingly adopting technology solutions to optimise procurement and reduce costs. With extensive backend capabilities, including intelligent matching of suppliers to orders based on price and availability, Reeco reports that clients can achieve average savings of 19% per order while reducing the time spent on procurement-related activities by up to 80%.
Moreover, Reeco’s strategic alliances are also shaping the landscape in hospitality procurement. For instance, the integration with M3, a provider of accounting and financial solutions, aims to enhance communication, visibility, and cost control within hotel procurement workflows. This partnership focuses on automating purchasing processes and improving financial tracking for hoteliers, which is critical for staying competitive in an industry characterised by rapid changes and operational pressures.
As Reeco continues to grow, its approach to utilising AI in procurement is setting a benchmark for the hospitality industry. With the promise of enhanced efficiency, better vendor management, and improved guest experiences, it appears that the future of hotel procurement may hinge significantly on such advanced technological solutions.
The hospitality sector’s reliance on outdated processes is rapidly being challenged, making way for innovations that promise to deliver smarter, faster, and more profitable operational methods.
In summary, Level5 Hospitality’s adoption of Reeco’s AI-driven platform exemplifies a broader shift within the hospitality industry towards embracing technology to streamline operations and enhance guest experience. As this technology continues to be adopted across more properties, it is likely to reshape procurement practices and vendor relationships for the better.
Reference Map
- Level5 Hospitality implements Reeco technology to modernize hotel procurement.
- Overview of Reeco’s growth and partnerships.
- Strategic alliances enhancing procurement efficiency in the hospitality sector.
Source: Noah Wire Services
