HRI Properties Upgrades Procurement to Cover Portfolio Diversity Including Hotels & Multi-Family
A national real estate company with an expanding portfolio mix since 1982, HRI Properties owns and manages 64 properties—in categories ranging from luxury multi-family apartments and residential properties to upscale hotels and mixed-use urban developments. A strategy to expand HRI’s assets beyond current boundaries led to a search to replace an existing procurement provider with one offering broader programs, greater supply chain expertise, and support across multiple brands, franchises and a mix of property types. We talked to Brandon Goubler, HRI’s Corporate Procurement Manager, to learn how Avendra stood out and was able to deliver a new level of procurement satisfaction across the portfolio and to the corporate operations.
After a lengthy evaluation, HRI saw that Avendra could deliver not only better pricing but also enhanced support for future growth requirements. Avendra’s extensive contract coverage in services such as elevators, laundry, landscaping, etc., (traditionally a highly fragmented area of spend) provided yet another value-added reason to make the move.
Avendra presented more robust service contracts, modeled around current best practices in the industry, leveraging the company’s contract expertise in insurance, indemnification and warranty provisions—and introducing new supplier performance standards. HRI immediately saw the advantages of the extra coverage.
“Our property managers take comfort in knowing that Avendra suppliers undergo a detailed approval process testing products, services and quality assurance practices. This makes supply chain decision-making much easier, especially at the property level. Avendra’s e-procurement solution, iBuyEfficient, offers enough range to meet our specific brand needs, without overwhelming our property managers, and allows them to see decision impacts on their budget—right away.”
What Avendra capabilities stand out?
Brandon notes that the responsiveness of the Avendra implementation team made a big difference throughout the cutover from the prior provider. HRI Properties went through two on-boarding phases―the first of which targeted 26 lodging properties with a very short on-boarding timeframe of less than 30 days.
Avendra met the challenge head-on, conducting property-level training, educational webinars and a full communications initiative, followed by a face-to-face presentation at HRI’s GM conference.
The second phase integrated HRI’s multifamily properties, which were new to utilizing a procurement provider and related technology. This required additional hands-on training and support—made easier, again, by the expertise of Avendra’s implementation team.
“We are continually impressed by the resources Avendra offers, particularly their product comparisons, supplier directories and the commodity reports, which are invaluable. Their customer-care team is experienced and efficient, and just a phone call away for assistance. As HRI continues to grow, we are confident Avendra puts us in the best position to deliver best-in-class results.”
How has Avendra improved your reporting and analytics?
With Avendra, HRI Properties has access to vast amounts of performance data on-demand to help monitor participation and identify savings. As a result, business leaders like Brandon gain valuable financial insights to help clearly identify opportunities across the portfolio to optimize savings.
“For us, having access to a company snapshot, month-over-month or year-to-date, at any one time, is huge—especially compared to what our prior procurement vendor was able to provide. It’s a great accountability tool, because you quickly see the impact of every decision. Also, the reports are actionable, highlighting areas to realize the most value from Avendra’s programs.”