Interview with Austine Jarome, Director of Purchasing, Al Faisaliah Hotels – Al Khozama Management Company

Do you believe that the management needs to be more involved in the procurement function from a strategic point of view?

I would rather say that the management should see the strategic importance of procurement function. The procurement function is considered as an expensive stream. The modern procurement methodologies of vendor managed inventory, cyclic buying, are not practiced across the business units. Maverick buying should be discouraged. On the other hand planned, managed procurement should be encouraged. Irrespective of direct or indirect buying, project or regular procurement all spend should be brought under management system.

What is the difference in operating in Saudi Arabia and what are some of the procurement challenges specific to this part of the world?

In fact, it would be like, me explaining, how the watch works.

Operating in Saudi Arabia, more of a manual job is involved.

It is not a very technology driven market here at Saudi Arabia, people rely more on the paper work, and standards at customs and ports could be interpreted as one wish so.

Lack of established, credible supply base is another issue.

How much of e-procurement techniques are you using for your day to day needs?

At present, 80% of the procurement process is done through, software and using other e-techniques, like cloud computing etc. 

How do you keep the different stakeholders happy, keeping in mind the cost concerns of the owners and quality concerns of the end user?

Well, in fact, quality is a perspective thought; it could be replaced by identifying what product could serve the purpose. For example, if an end user wishes to have a laptop, that could be addressed by buying a HP, which is not that costly compared to a Sony, see, which is easy.

The million dollar question is will HP serve the purpose or you wish to get a feature rich, sleek and astonishingly great looking Vaio?

In the other case, it comes with the price. But if your buying objective is meant to serve the purpose, then you will not feel the pinch of high cost.

What do you expect from the Hospitality Business Conclave 2016 in Jeddah? Do you think these meetings with world class suppliers helps you in your procurement process?

In fact, I am a good listener, so I wish to listen to what the experts have to share.

Second, getting a platform to introduce one’s view is important, so as for me and I consider this event as a great platform.

Hoteliers are known as more of an innovation seeker, having said that, knowing about new technology and networking with peers and supplier are the other ways that I wish utilize this opportunity. 

Austine Jarome was interviewed by the team at Information Exchange Group ahead of their upcoming event Hospitality Business Conclave 2016.