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Save a million on purchases

A new feature of the Tillypad XL automation system allows us to control the purchase price of products at the stage of creating stock-in records, therefore discouraging corrupt practices among restaurant staff.
The development of this feature was initiated by AMAKS Hotels & Resorts, one of Russia’s largest hotel chains (25 hotels and spa resorts in 20 cities). For a holding of this size, the management of purchase prices is vitally important. This is why the new feature was for the first time tested in the AMAKS Golden Ring resort in Vladimir with eight operating restaurants. After it had been tested in-situ, AMAKS implemented it in almost all of their venues.
How does it work?
The central office located in Moscow creates a Planned Cost Record, in which they specify the maximum possible price for a stock item in a given group of stores. If the storekeeper tries to enter a higher price into the stock-in record, the Tillypad XL system will display an error message. In this case, the store worker will need to send an internal note to Moscow explaining the reasons for purchasing items at a higher price.
If this purchase is affected by force majeure (e.g. special order or season article), the central office employee who has access to this function registers this stock-in record. The Planned Cost Record remains unchanged and continues to limit the purchase price. The Tillypad XL system keeps a record of all stock-in records with over-the-limit prices and sends a corresponding report to the central office at the end of the business day.
As a result, the central office has a clear control over the purchase prices onsite but can also be flexible in special cases. This feature eliminates the risk of a deliberate price boost on the part of the staff wishing to pocket the difference, as employees have to provide a justification for each example of such cases.
Dmitry Nikonov, Development Director of restaurants and entertainment centers at AMAKS Hotels & Resorts said:
"This is a very advantageous solution, which we have implemented in 14 cities where our hotels are located. At the start of next year, we are going to launch it in two more cities: Omsk and Izhevsk. This feature prevents any misuse and helps us to keep prices within acceptable limits. After having implemented this feature, we have seen a 3% decrease in expenses, which for a chain of our size means about one million roubles (over $30 000) every month."