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Proprietary & Confidential Information of Avendra, LLC ©2016 Avendra Overview

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Page 1: Avendra Overview · 2017-05-05 · Proprietary & Confidential Information of Avendra, LLC ©2016 Quick Stats o 570 clients including 17 of the top 25 hotel management companies* o

Proprietary & Confidential Information of Avendra, LLC ©2016

Avendra Overview

Page 2: Avendra Overview · 2017-05-05 · Proprietary & Confidential Information of Avendra, LLC ©2016 Quick Stats o 570 clients including 17 of the top 25 hotel management companies* o

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

Page 3: Avendra Overview · 2017-05-05 · Proprietary & Confidential Information of Avendra, LLC ©2016 Quick Stats o 570 clients including 17 of the top 25 hotel management companies* o

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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Page 4: Avendra Overview · 2017-05-05 · Proprietary & Confidential Information of Avendra, LLC ©2016 Quick Stats o 570 clients including 17 of the top 25 hotel management companies* o

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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Page 5: Avendra Overview · 2017-05-05 · Proprietary & Confidential Information of Avendra, LLC ©2016 Quick Stats o 570 clients including 17 of the top 25 hotel management companies* o

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

Page 6: Avendra Overview · 2017-05-05 · Proprietary & Confidential Information of Avendra, LLC ©2016 Quick Stats o 570 clients including 17 of the top 25 hotel management companies* o

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

Page 7: Avendra Overview · 2017-05-05 · Proprietary & Confidential Information of Avendra, LLC ©2016 Quick Stats o 570 clients including 17 of the top 25 hotel management companies* o

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

Page 8: Avendra Overview · 2017-05-05 · Proprietary & Confidential Information of Avendra, LLC ©2016 Quick Stats o 570 clients including 17 of the top 25 hotel management companies* o

Proprietary & Confidential Information of Avendra, LLC ©2016

AVENDRA’S MASTER FOOD DISTRIBUTION NETWORK PROVIDES EXTENSIVE COVERAGE

DMA

USF

Sysco

GFS

Independent

ggg

g

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Page 9: Avendra Overview · 2017-05-05 · Proprietary & Confidential Information of Avendra, LLC ©2016 Quick Stats o 570 clients including 17 of the top 25 hotel management companies* o

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

Page 10: Avendra Overview · 2017-05-05 · Proprietary & Confidential Information of Avendra, LLC ©2016 Quick Stats o 570 clients including 17 of the top 25 hotel management companies* o

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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Page 11: Avendra Overview · 2017-05-05 · Proprietary & Confidential Information of Avendra, LLC ©2016 Quick Stats o 570 clients including 17 of the top 25 hotel management companies* o

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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Page 12: Avendra Overview · 2017-05-05 · Proprietary & Confidential Information of Avendra, LLC ©2016 Quick Stats o 570 clients including 17 of the top 25 hotel management companies* o

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

Page 13: Avendra Overview · 2017-05-05 · Proprietary & Confidential Information of Avendra, LLC ©2016 Quick Stats o 570 clients including 17 of the top 25 hotel management companies* o

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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Page 14: Avendra Overview · 2017-05-05 · Proprietary & Confidential Information of Avendra, LLC ©2016 Quick Stats o 570 clients including 17 of the top 25 hotel management companies* o

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

Page 15: Avendra Overview · 2017-05-05 · Proprietary & Confidential Information of Avendra, LLC ©2016 Quick Stats o 570 clients including 17 of the top 25 hotel management companies* o

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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Page 16: Avendra Overview · 2017-05-05 · Proprietary & Confidential Information of Avendra, LLC ©2016 Quick Stats o 570 clients including 17 of the top 25 hotel management companies* o

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

Page 17: Avendra Overview · 2017-05-05 · Proprietary & Confidential Information of Avendra, LLC ©2016 Quick Stats o 570 clients including 17 of the top 25 hotel management companies* o

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

Page 18: Avendra Overview · 2017-05-05 · Proprietary & Confidential Information of Avendra, LLC ©2016 Quick Stats o 570 clients including 17 of the top 25 hotel management companies* o

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

[email protected]

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