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Hotel procurement:
25% lower operating costs across properties

We built a procurement platform for a hospitality franchise network that forecasts demand from live usage data and sends purchase orders to suppliers automatically. Operating costs fell 25%, and waste fell 18%.

Client: Sentinel NetworkIndustry: HospitalityService: AI & Automation

Lower operating costs
25%
Less waste
18%
Stock accuracy
100%

Overview

Project
at a glance

Industry
HospitalityA hospitality franchise network buying high volumes of consumables for 100+ sites, each with its own local demand.
How we worked
Dedicated product teamAn intelligent process automation (IPA) architect, 2 backend engineers and an ERP integration specialist worked inside the client's supply chain team.
Goal
Automate purchasingReplace manual, error-prone ordering by email with a platform that raises and checks purchase orders (POs) on its own.
What we built
Procurement automation platformLive stock tracking, demand forecasting and automatic POs, connected to the client's ERP, point-of-sale systems and vendors.

Client

Who we
built it for

Sentinel Network

Hospitality franchise network

About the client
A hospitality franchise network buying high volumes of consumables for 100+ sites, each with its own local demand.
What they needed
Replace manual, error-prone ordering by email with a platform that raises and checks purchase orders (POs) on its own.
Where they were
Franchise managers at 100+ locations ordered supplies through separate spreadsheets and emails. Reported stock was 15% out from what was actually on the shelves, which led to frequent emergency shipments and a lot of waste.

Engagement snapshot

Industry
Hospitality
Service
AI & Automation
Engagement
Dedicated product team
Delivered
Procurement automation platform
Headline result
25% · Lower operating costs

The challenge

What was getting
in the way

Franchise managers at 100+ locations ordered supplies through separate spreadsheets and emails. Reported stock was 15% out from what was actually on the shelves, which led to frequent emergency shipments and a lot of waste.

Orders were based on what managers could see and their own judgement. Turning a low-stock alert into a purchase order could take 48 hours, and head office had to hire more admin staff for every 10 new sites.

  • Emergency shipping costs

    Unexpected stock-outs meant last-minute deliveries at 3x the standard shipping rate.

  • Cash tied up in stock

    Over-ordering at 40% of locations tied up capital and caused high spoilage of perishables.

  • Frustrated franchise owners

    Franchise owners named manual ordering as their #1 pain point, and it was slowing the opening of new sites.

The solution

What
we built

  1. 01

    Live stock tracking from tills and scales

    We built one IoT connection that reads live usage data from point-of-sale (POS) systems and smart scales, keeping an up-to-date digital copy of each site's inventory.

    Type
    Event driven
    Protocol
    MQTT
    Response time
    Under a second
  2. 02

    Demand forecasting for each site

    AI models study past consumption, local events and seasonal occupancy to forecast what each site will need.

    Logic
    AI assisted
    Deployment
    Scales with new sites
    Accuracy
    96% Forecast
  3. 03

    Automatic purchase orders

    The system creates purchase orders and sends them straight to vendor APIs, with an automatic audit trail for every line item.

    Compliance
    SOC 2-ready
    Integrations
    Built into the ERP
    Verification
    Traceable logs

Key features

What made it
useful

  • DEMAND FORECASTING

    Predicts what each site needs

    AI forecasting models study past consumption, local events and seasonal occupancy to predict what each site needs, reaching 96% accuracy.

    Business impact

    96% forecast accuracy

  • AUTOMATED ORDERING

    Picks vendors and raises orders

    AI picks the best vendor per site, and purchase orders are raised and matched to invoices automatically.

    Business impact

    POs raised within 2 minutes

  • AI assisted

    Automatic vendor choice

    For each site, the AI picks the best vendor based on live prices, lead times and regional stock.

    Business impact

    Zero manual sourcing

  • Traceable

    Three-way matching

    POs, invoices and delivery slips are matched automatically, so invoice fraud and short deliveries are caught straight away.

    Business impact

    100% financial accuracy

  • Live updates

    Orders that follow bookings

    Order levels change as hotel bookings rise and fall, which stops overstocking when guests cancel unexpectedly.

    Business impact

    18% less waste

Before and after

How the work
changed

How orders are decided

Before

Best guess

Franchise managers ordered from visual checks and gut feeling.

After

Based on real usage

Forecasting models trigger orders from measured consumption.

Record keeping

Before

Scattered emails

Order records sat in different inboxes, with no central audit trail.

After

One shared ledger

Every PO trigger, vendor response and delivery is logged in one traceable ledger.

Growth

Before

More sites, more staff

Head office had to hire more admin staff for every 10 new franchise sites.

After

Same team at any size

The same system runs 100 or 1,000 sites without adding to head office operating costs.

Results

The business
difference

  1. Efficiency

    25% Operating Cost Reduction

    Operating cost savings

    Automation removed manual admin tasks and cut corporate procurement overhead by 25%.

    Before: ManualAfter: 25% Lower

  2. Sustainability

    18% Less Waste

    Inventory waste

    Matching orders to forecast demand reduced spoilage and over-stocking across the franchise network.

    Before: High SpoilageAfter: Optimised

  3. Reliability

    99.9% Fulfilment Rate

    Order fulfilment

    Orders are now fulfilled 99.9% of the time, and automated triggers raise a vendor PO within 2 minutes of stock running low.

    Before: < 10 MinsAfter: 2 Mins

Testimonial

What the client
says

“Purchase orders now go out within 2 minutes, matched against invoices and delivery slips. Forecasts of what each site needs are 96% accurate, waste is down 18%, and operating costs across the network are 25% lower.”
Kenneth EdwardsDirector of Procurement, Sentinel Network

Key results

  • 25% lower operating costs
  • 18% less waste
  • 96% forecast accuracy
  • POs raised within 2 minutes

Trust and control

How we kept it
safe and reliable

  • 01

    Secure vendor connections

    Every vendor API connection uses encrypted, scoped tokens, so no vendor can reach the client's database.

    Secure access
  • 02

    A reason for every order

    Each PO carries a data-origin tag that shows exactly which stock trigger caused it.

    Traceable
  • 03

    Room to grow

    The cloud setup can expand to 500+ sites without redesigning the system.

    Scales with new sites
  • 04

    You own the engine

    The client owns 100% of the automation engine, demand models and custom vendor connectors.

    100% owned

Faster delivery

Built on tested foundations

Reusing tested components saved about 8 weeks, which the team spent on demand forecasting and rules for each franchise.

  • Vendor API module

    Provided tested connectors and scoped access tokens for sending orders to supplier systems.

  • Inventory monitoring module

    Turned POS and smart-scale readings into live stock levels for each site.

  • Logistics monitoring platform

    Tracked each order from PO to delivery, so late or short shipments showed up quickly.

  • Procurement cost controls

    Checked each automatic order against budget before it went to a vendor.

FAQ

Straight
answers

Have a different question? Ask it on a 30-minute call.

Book a call

More than 100 sites ordered supplies through spreadsheets and emails from franchise managers. Reported stock was 15% out from real stock, so emergency shipments at 3x the normal rate were common. At the same time, 40% of locations over-ordered, tying up cash and spoiling perishables. Franchise owners called ordering their biggest pain point.

Take the guesswork out of ordering

If your sites still order by email and gut feeling, we can help you automate purchasing from real usage data and keep a full audit trail.