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Overcoming Shortages Through Supplier and Labour Management Strategies

Overcoming Shortages Through Supplier and Labour Management Strategies

Hospitality businesses in Australia are now catching up from the impact of lockdown and uncertainty during the pandemic. While some recovery has brought improved revenues, significant industry-wide labour and supply shortages have hampered operations and guest sentiment.

To overcome these factors, organisations must take advantage of every opportunity to attract and retain workers through savvy labour management tactics while maintaining strong supplier relations.

Managing Supplier Relations

Choosing suitable suppliers and negotiating good purchasing deals are just as crucial as managing ongoing relationships, particularly regarding receiving and paying for goods.

The theory is simple: ensure you get and pay for exactly what you ordered. This means checking you’ve received the right quantity of the right product in the right condition and within the use date – and especially that the delivery note and invoice match the order.

Thankfully, you can take steps to make it second nature. First, set specific days of the week for deliveries where possible. Accepting and checking deliveries should be part of the routine rather than ad hoc.

You should have a copy of the order on hand to check against items and quantities. Use three-way matching to make sure you are in line with any pricing agreements. This means ensuring that the invoice matches the goods received note, original order, and any amendments you have recorded at delivery – not just quantities, but price differences too. By automating the three-way matching process with the right purchase-to-pay solution, you can set up your deliveries so you only deal with exceptions, saving crucial time.

There is an element of labour management in supplier relations. Operating as a company vendors want to do business with creates mutual trust and promotes long-term efficiency. Maintain clear and advanced communications, make ethical decisions to honour your contracts, and pay on time.

Further nurturing skills over the long term through ongoing training programs helps ensure even tenured employees better understand their jobs. Over time, upskilled employees become perfect candidates for management positions.

Attracting Talent

Effective labour management begins weeks before a first shift. An engaging and stress-free hiring process attracts more applicants, allowing managers to find the best candidates in the labour pool. With the proper applicant tracking system, candidates have a short and engaging application process.

Once an offer is extended, managers need to emphasise new-hire onboarding to ensure employees are set up for long-term success in their positions. Training throughout the past two years has involved much more trial-by-fire learning than managers would otherwise prefer, but developing short and engaging training materials can partially mitigate this.

Further nurturing skills over the long term through ongoing training programs helps ensure even tenured employees better understand their jobs. Over time, upskilled employees become perfect candidates for management positions.

Retaining Current Talent

The labour shortage likely has some of your teams in a pinch, and overburdening them with extra responsibilities will only drive further burnout. To keep these employees passionate and engaged, you’ll need to consider changing tangible benefits and work-life balance.

You’ll need to think outside the box to retain burnt-out workers in a tight labour market. Adding traditional benefits may do the trick, but many operators do not have the extra budget to commit to this long-term.

Instead (or in addition), look for effective, easy-to-adopt perks that bolster your labour management and incentivise employees to stay on. Increasing hours for part-time workers, allowing more PTO days, offering paid sick leave, and advanced scheduling notice are just a few perks employers have adopted to ensure talent remains bought-in.

With supply chain and labour shortages holding up operational efficiencies, operators need every tool to drive adequate revenues. Fourth empowers your teams to maximise revenue and minimise costs by providing a full range of back-office tech solutions under a single sign-on.

Schedule a demo today at https://www.fourth.com/en-au/request-demo/ or email apacenquiries@fourth.com to see which solutions best fit your business.

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