avendra overview · 2017-05-05 · proprietary & confidential information of avendra, llc...
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Proprietary & Confidential Information of Avendra, LLC ©2016
Avendra Overview
Proprietary & Confidential Information of Avendra, LLC ©2016
Quick Stats
o 570 clients including 17 of the top 25 hotel
management companies*
o 7,000+ customer locations
o Client retention rate of 99.5%
AVENDRA OVERVIEW
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History Avendra is an independent procurement
company formed in 2001 by some of North
America’s most successful hospitality
organizations
Value Proposition
Cost Savings
Supply Chain
Assurance
Customer Support
Innovation
Strategic Sourcing Expertise
o $4 billion in spend leveraged to achieve best-
in-class pricing
o More than 800 national and local supplier
agreements and millions of products and
services offered
o Strong contractual terms to provide enhanced
service, mitigate risk and limit liability
*Based on Hotel Business’ list of the Top 2015 Management Companies, ranked by gross annual revenue, December 2015
Proprietary & Confidential Information of Avendra, LLC ©2016
AVENDRA’S COMMANDING MARKET PRESENCE Brand Owner # Sample Brands
Best Western 79 Best Western
ClubCorp 148 ClubCorp
Choice 241 Comfort Inn, Econo Lodge
Fairmont 46 Fairmont, Swissotel
Hilton 1,143
Doubletree, Embassy Suites, Hampton Inn,
Hilton Hotels, Homewood Suites, Waldorf
Astoria Collection
Hyatt 415
Andaz, Grand Hyatt, Hyatt Hotels, Hyatt
House, Hyatt Place, Hyatt Regency, Park
Hyatt
InterContinental Hotels 450
Candlewood, Crowne Plaza, Holiday Inn,
Express & Select, Hotel Indigo, Staybridge
Suites
Marriott 2,764
Autograph, Courtyard, Fairfield Inn, Gaylord,
JW Marriott, Renaissance, Residence Inn,
Ritz-Carlton, SpringHill Suites, TownePlace
Suites
Starwood 188 Aloft, Element, Four Points,
Le Meridien, Sheraton, Westin
Wyndham 133 Baymont, Days Inn, Ramada, Super 8,
Wingate Inn, Wyndham Hotels
Independent/Other 1,826 Four Seasons, La Quinta, Loews, Mandarin
Oriental, Esperanza Auberge, Golf Clubs
Customer Locations 7,433
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Proprietary & Confidential Information of Avendra, LLC ©2016
SAVINGS ARE COMPELLING
We continuously perform cost comparison analyses to ensure price
competitiveness. Results demonstrate Avendra cost advantages
Average 10.5% savings across a variety of segments
This table includes cost comparison studies performed by Avendra from January – December 2015.
Market Segment
% Savings
Total Studies Master Food Distributor
Other Food Non-Food Overall
Luxury Hotels 16 11% 5% 15% 9%
Full Service Hotels 32 15% 13% 9% 11%
Select Service Hotels 39 9% 17% 10% 11%
Golf Clubs 18 11% 11% 13% 11%
Gaming 4 14% 9% 21% 14%
Other 19 8% 5% 13% 8%
Grand Total 128 11% 10% 11% 10.5%
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Proprietary & Confidential Information of Avendra, LLC ©2016
INDUSTRY-LEADING SUPPLIERS Gain access to over 800 best-in-class national and local
supplier agreements
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Strong contractual terms and conditions to
enhance service, mitigate risk and limit liability
Proprietary & Confidential Information of Avendra, LLC ©2016
Avendra contracts at every level of the supply chain,
from raw materials to distribution, to maximize savings
and provide increased supply chain protections for our
clients
SOURCING STRATEGIES DELIVER SUPERIOR BENEFITS
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Raw Materials Manufacturer Distributor
Proprietary & Confidential Information of Avendra, LLC ©2016
FOOD & BEVERAGE
o Full Restaurant
o Linens and Uniforms
ROOMS OPERATIONS
o Terry and Linens
o Amenities
ENGINEERING
o Tools and Supplies
o Elevator Services, energy
management, fire and safety
ADMINISTRATIVE
o Office Supplies
o Overnight Delivery
CLEANING CHEMICALS
& SANITIZING SYSTEMS
o Pest Elimination
o Pool Chemicals
GROUNDS & AGRONOMY
o Turf Care Products
o Equipment and Parts
SPA EQUIPMENT & SUPPLIES
o Terry and Linens
o Skin Care Products
PURCHASING PROGRAMS
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GIFT SHOP/RETAIL
o Convenience Items
o POS Supplies
GOLF PRO SHOP
o Apparel, Equipment
and Accessories
REPLENISHMENT
o Furniture, Fixtures and
Kitchen Equipment
INNOVATIVE CONCEPTS
o Boutique Wine Program
Proprietary & Confidential Information of Avendra, LLC ©2016
AVENDRA’S MASTER FOOD DISTRIBUTION NETWORK PROVIDES EXTENSIVE COVERAGE
DMA
USF
Sysco
GFS
Independent
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Proprietary & Confidential Information of Avendra, LLC ©2016
WIDE RANGE OF SERVICES MEET OPERATIONAL NEEDS
o Elevator Maintenance
o Landscaping/Snow Removal
o Night Cleaning
o Window Washing
o Carpet/Tile/Marble Maintenance
o Power Washing
o Sanitation Services (Pest, Pool, etc)
o Fire Safety Systems Maintenance
o Uniform Rental Services
o Handyman Services for Electrical,
Plumbing, HVAC, etc.
o Interior Plant Rental & Maintenance
o Valet Parking
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o HR Services: Background Checks &
Drug Testing
o Scent systems
o Music systems
o Tree Removal Service
o Exhaust Hood Cleaning
o Temporary Labor
o Energy Management
Proprietary & Confidential Information of Avendra, LLC ©2016
ASSURING QUALITY AND SAFETY
Our expert QA team works closely with suppliers and clients to audit product quality and standards
Avendra’s QA Team
Avendra’s Quality Assurance Capabilities
• Culinarians
• Food Scientists
• Microbiologists
Avendra’s QA Supplier Audit Program
o Regular, proactive audit plan driven by ongoing
risk assessment
Customer Advisory Management
o Product Recalls
o Advice on major food issues such as limiting
Trans Fats, Rising Cost of Food, and more
Other QA Services Available
o Property-based Food Safety Operational
Reviews
o “Meet The Truck” audits (Delivery/Receiving)
o Food Safety Education Seminars
o Custom Corporate QA Audit Program
Development
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Proprietary & Confidential Information of Avendra, LLC ©2016
ONGOING PRICE ASSURANCE SUPPLIER AUDITING
o Review distributor internal controls for pricing
administration
o Calculate expected price using cost, freight, markup
and additional fee information
o Issue audit reports summarizing findings:
• Pricing errors and their root causes
• Credits to be issued from testing
• Control issues identified and
recommendations for resolution
o Pricing Validated
o Credits Issued
o Process Improvements Recommended
o Follow Up Audits Scheduled
Purchase Usage Reporting System (PURS) Captures $4 billion in spend data
$2 Billion audited
Automated Audits Field and Desk Audits
o Test all eligible cost-controlled products in selected period
• Monthly audit of 50% of all US Master Food spend
o Calculate expected price using cost, freight, markup and
additional fee information
o Transactions with variances sent to distributors for review
and credit issuance
o Distributors required to submit proof of credit issuances to
Avendra Price Audit
o Consistent price error rate of less than 0.2% of audited
spend
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Proprietary & Confidential Information of Avendra, LLC ©2016
o Acts as first tier of support to property-level resources for
information regarding Avendra’s programs
o Manage full lifecycle of issues (open -> document -> action
plan -> close) related to Avendra programs
TRANSITIONING AND SUPPORTING YOUR BUSINESS
Account Management
Field Support and
Outbound Customer
Service
o A single point of contact to interact with client HQ to manage
all aspects of the strategic relationship and represent client’s
interests, business imperatives and objectives within
Avendra
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Your business is unique. We work collaboratively to define and
then achieve your goals.
Implementation Support o Dedicated team that assists in on-board client properties to
the Avendra programs and connecting locations to suppliers
Inbound Customer
Service
1-866-AVENDRA
o First tier of support at unit-level with resources and
information regarding Avendra’s programs
o Interacts with unit-level personnel to support client’s interest
and initiatives through targeted call campaigns
Proprietary & Confidential Information of Avendra, LLC ©2016 13 Updated 1/16
www.avendra.com
866-AVENDRA
FIELD SUPPORT & CUSTOMER RELATIONS
Territory #2
Kris Cahill
Sr. Director–West
Cust Care: Cheryl Hopson
Territory #4
Kristina Zakaryan
Manager – Denver
Cust Care: Marcia DeSouza
Territory #6
Mark Washburn
Director – Southwest
CC: Marcia DeSouza
Territory #18
Greg Lanier
Sr. Director- Midwest
Cust Care: Margaret Hansen
Territory #8
Christine Petersen
Manager – Chicago
Cust Care: Marcia DeSouza
Territory #9
Jep Street
Manager – Detroit
Cust Care: Grafton Layer
Territory #15
Eileen Herzog
Manager - New England
Cust Care: Grafton Layer
Territory #16
Brett Angstadt
Manager – Manhattan, Long
Island, NJ
Cust Care: Grafton Layer
Territory #14
Kate Roberts
Director – Northeast
Cust Care: Grafton Layer
Territory #13
Sharon Farmer
Manager – Raleigh
Cust Care: Grafton Layer
Territory #5
John Krebsbach
Manager – St Louis
Cust Care: Marcia DeSouza
Territory #3
Rodney Culwell
Manager – San Diego / Cochella Valley /
Inland Empire / Newport Bch &
surrounding cities
Cust Care: Cheryl Hopson
Territory #17
Carter Kamana
Manager – Hawaii
Cust Care: Cheryl Hopson
Territory #7
Todd Haggerton
Manager– Houston
Cust Care: Marcia DeSouza
Territory #19
Galen Rash
Manager - DC, MD, N.VA
Cust Care: Grafton Layer
Territory #20
Rob Bailey
Director – SE US
/Caribbean Islands
Cust Care: Margaret Hansen
Territory #12
Bob Snoddy
Manager – S. Florida /
Charleston / Hilton Head /
Savannah Area
Cust Care: Margaret Hansen
Territory #21
Melissa McCormack
Manager – Pacific Northwest &
Western Canada
Cust Care: Cheryl Hopson
Territory #22
Afsar Khan
Director - Toronto
Cust Care: Nora Cornish
Territory #1
Greg Young
MGR - San Francisco
Cust Care: Cheryl Hopson
Territory #23
Paloma Berumen
Market Manager – Mexico and
Latin America
Cust Care: Margaret Hansen
Territory #11
Jess Hayden
Manager – Tampa
Cust Care: Margaret Hansen
Territory #24
Norman Sikaffy
Manager – Huntington Bch N to Morro Bay/
E to Pasadena area
Cust Care: Cheryl Hopson
Territory #10
Maisha Richardson
Manager – Atlanta
Cust Care: Margaret Hansen
Territory #25
Ronald Wilson
Manager – TN, AL, MS
Cust Care: Margaret Hansen
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Proprietary & Confidential Information of Avendra, LLC ©2016
Provides customers with spend reports, supplier information,
expertise and more
Enhanced Search Capabilities
o Find the best supplier for your
unique needs
o Search by program, supplier,
product, category, or key word
Reporting
o Improve transparency and optimize
savings with company and
property-level reports:
• % Participation & Opportunity
• Master Food IMPACT
• Bracket Reporting
Communications
o Supplier updates, recall notifications, commodity
reports, market trends, expertise and much more
o All users opt-in to relevant emails
CUSTOMER PORTAL - MYAVENDRA.COM
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Participation & Opportunity Report
Proprietary & Confidential Information of Avendra, LLC ©2016
HOW THE PROGRAM WORKS
Maintain the transactions and relationships you have
with suppliers
AVENDRA
• Order Processing
• Product Inventory & Availability
• Product Recommendation
• New Product Introduction
• Order Placement
• Service/Delivery Expectations
• Product Needs Assessment
• Develop Product Specification
Feedback Loop
• Manage supplier agreements and
corporate relationships
• Product/Service Issue Resolution
• Specification Development Assistance
CUSTOMER SUPPLIER
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Proprietary & Confidential Information of Avendra, LLC ©2016
AVENDRA MODEL: PROGRAM PARTICIPATION
Participation-Based Purchasing
o Customers commit to buy at least 80% of annual eligible purchases
through Avendra contracted suppliers for the Purchasing Programs in
which they enroll
• Purchase up to 20% of goods and services from non-Avendra suppliers
• Flexibility to meet your requirements for:
o Brand Specification
o Quality
o The 80% participation commitment
• Provides the stability suppliers need to remove costs from the supply chain
and operate in a more streamlined manner. These savings and efficiencies
are then delivered directly to customers in the form of discounted pricing.
• Allows Avendra to dedicate resources, provide the desired levels of service,
invest in unique products based on customer specifications, and much more.
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o Service
o Price Competitiveness
Proprietary & Confidential Information of Avendra, LLC ©2016
PROCUREMENT MODEL
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No Fee
• Client participates in Avendra program at no cost. All supplier allowances are retained by Avendra.
• Client and its properties enjoy aggressive Avendra pricing for contracted goods and services.
• Avendra assumes risk of client’s property compliance with Avendra programs which produces allowances
Proprietary & Confidential Information of Avendra, LLC ©2016
THANK YOU
If you have any questions, please let me know.
JILL RIGSBEE, DIRECTOR – BUSINESS DEVELOPMENT (919) 435-7171
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