Operation Management

Payment terms are a critical aspect of hospitality procurement due to the cash flow issues that are common in this industry. Typically, the terms are quite generous, with payment negotiated for 90 to 120 days after receipt. End of life management is an ongoing challenge in the hospitality industry. Equipment is generally replaced within a two- to three-year time frame, and may be shorter in higher-end facilities. The need to continually refresh the look results in a range of products with useful life remaining after being replaced.