HOSPITALITY PROCUREMENT IN 2025: INDUSTRY INSIGHTS FROM NICOLE SCHMIDT

As the hospitality industry navigates an ever-evolving procurement landscape, industry leaders offer their perspectives on what lies ahead. Nicole Schmidt, CEO and founder of Source, recently shared her expertise in Hotel Business Magazine’s Green Book Purchasing Company Report. Joining a panel of procurement executives, Schmidt provided insights on key trends shaping the future of hospitality procurement in 2025, including the impact of new tariffs on global supply chains.

Industry Leaders Weigh in on Procurement Challenges

Each year, Hotel Business Magazine publishes its highly anticipated Green Book, a comprehensive report that highlights the most pressing issues in purchasing and procurement. The discussion centered around the potential implications of new tariffs and how procurement strategies may need to evolve in response.

Schmidt provided a clear-eyed perspective on the ripple effects that tariffs have across the supply chain. While the full scope of these policy changes is still evolving, she underscored the importance of proactive planning and budget optimization.

“The impact depends on how broadly and aggressively tariffs are applied,” Schmidt noted. “New tariffs tend to create a multifaceted disruption across global supply chains that has an effect over several years. While no one’s crystal ball is clear, we foresee likely implications regarding higher prices for raw materials and finished goods, longer lead times, and potential issues with ocean freight costs and availability.”

She emphasized that it is helpful for procurement professionals to track new tariffs as a distinct line item in the budget to measure their impact. It's also important to plan contingencies for freight, and work closely with vendors and clients to mitigate risks to the extent possible. By taking a strategic approach, businesses can better weather supply chain disruptions and maintain budget parameters.

Key Takeaways: The Future of Hospitality Procurement

Schmidt’s contributions to the Green Book reinforce Source’s commitment to staying ahead of industry shifts. As the global economy becomes increasingly complex, hospitality businesses must adopt adaptable, forward-thinking strategies. Some of the key takeaways from the report include:

• Tariff Implications: Procurement professionals must plan for cost increases, supply chain disruptions, and potentially longer lead times.

• Strategic Budgeting: Businesses should proactively hold contingencies for freight and logistics, ensuring that unforeseen costs do not derail projects.

• Diversified Sourcing: The need to explore alternative sources and strengthen domestic supply chains will likely grow in importance.

• Collaboration & Communication: Strong vendor relationships and clear communication will be critical in navigating uncertainties and optimizing procurement strategies.

As Source continues to support clients through a rapidly changing procurement landscape, Schmidt’s leadership ensures that businesses have the tools and insights necessary to make informed, strategic decisions.

Download the Full Report

Interested in learning more about Nicole Schmidt’s insights and the key trends shaping 2025? Download Hotel Business Magazine’s Green Book for the full report:

Hotel Business Magazine’s Green Book

Let’s face 2025’s challenges together—with innovative solutions, strategic foresight, and the collaborative spirit that defines Source.