BirchStreet Best Practices: Omni Hotels Takes Control of Spending with BirchStreet

In his role as Vice President, Strategic Sourcing for Omni Hotels, Jim Kuthy is well-versed in the ins and outs of purchasing practices.  As a BirchStreet customer, Omni has automated all of its purchasing processes into one centralized, streamlined solution – and is reaping the benefits.

Omni works with hundreds of distributors and manufacturers to procure everything for their entire luxury hotel portfolio.  With distributors constantly changing pricing on goods to reflect market shifts, Jim needed a technology solution to ensure that the hotels received the products and prices that were originally contracted.  In other words, Jim needed to ensure better compliance, and BirchStreet provided the answer – enabling near 20/20 visibility into Omni’s spend – with a guarantee of real-time pricing.


Omni and BirchStreet have worked together to deploy functionality that enables Omni to take a credit from suppliers when products are delivered at a higher price than contracted.  For example, if Omni places an order on a Thursday, the order details, including UOM and pricing, are transmitted from Omni to the distributor and then from the distributor to Omni’s BirchStreet platform. This functionality provides insight and accountability. Even if the distributor’s system updates the price before delivery to Omni, Omni only pays the price given at the time of purchase.

Jim states that this functionality has prevented hundreds of thousands of dollars in discrepancies and overage charges.

In addition to streamlining the procure-to-pay cycle, Omni’s system, and its built-in data warehouse, provides real-time visibility and analytics across all of their properties, as well as top-down control over product choices, brand standards, supplier contract compliance and purchasing procedures and controls.

Now that’s what we call purchasing best practices!

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