What is Hospitality Procurement?

It is focused on the purchasing of goods and services for the hotel, restaurant and resort industry. This industry has very specific needs that are not standard in any other industry.
Although just as hospitality can’t be limited just to these areas, it can also include any establishment that require purchasing of Furniture, Fittings and Equipment (FF&E).

What is included in Furniture, Fittings and Equipment (FF&E)?

• Office furniture
• Bedroom furniture
• Restaurant furniture
• Bed bases & mattresses
• Fridges, safes, electronic door locks
• Window treatments – Curtains & blinds
• Hard & soft floor coverings, Carpets, Vinyl and tiles
• Artwork & Decor
• Bathroom accessories & bathroom sanitary ware

Name the four primary aspects to Hospitality Procurement.

• Sourcing:

  Identification of suitable vendors to submit quotations after inspection of various manufacturing plants for quality and sustainable products.  The materials used must be highly durable and designed to be used by a wide range of people. 
  Quality is an issue with all products, but the primary focus in hospitality procurement is longevity and replacement that compliments the establishment’s design layouts.

• Negotiations:

  Being passionate about what you are negotiating for is key to making the best deal.  Through trust and relationship building, a confidence is built up between the vendors and the procurement specialist to be able to not only understand the client’s brief, but doing it in a great way to save money, avoid costs, establish agreements and discover value-added benefits.

• Payment Processes & Terms:

  To ensure the uninterrupted flow of Hospitality Procurement, payment terms need to be agreed on between the client, procurement specialist and vendor. 
  This balancing act task is managed by the procurement specialist that will guide all parties involved in the project.

• Operating circle of continuation:

  This is an ongoing challenge in the hospitality industry – the need to continually refresh the look and upgrade operating and specialised equipment (OSE). 
  A total new concept that includes changing layout, furniture, fittings and equipment can be proposed that will place the establishment above the competition.  Or if the budget doesn’t allow for a major upgrade only a soft refurbishment can be considered. 
  In renewing linen, curtains, carpets / flooring, paint colours and re-upholster furniture can breathe new life into any establishment that doesn’t need to interrupt business or upset the finances.

What is operating and specialised equipment (OSE)?

• Operating Equipment include:
  • Cleaning Equipment
  • Linen & Terry
  • Kettles & Hairdryers
  • Crockery, Glassware and Cutlery
  • Kitchen smalls and Bar smalls
  • Buffet equipment
  • Office equipment
  • Consumables – Amenities, paper products & stationary

• Specialised Equipment include:
  • Kitchen equipment
  • Laundry equipment
  • Audio visual equipment
  • Point of sale
  • In room entertainment

Name the common mistakes owners / managers make in self-procuring.

Every organisation makes mistakes, whether they realize they are making them or not.  Some of the mistakes can include going over the budget or not knowing the budget or what the proposed project will calculate to.
Going beyond the set budget can happen either because organisations purchase the incorrect items (either by design, practicality or operational requirement) and need to procure more suitable items.  This could also be due to owners / managers not having the available time to spend on concept designing, researching, sourcing and coordinating installation. 
Impulse buying, not negotiating or having supplier relationship that can give valuable information or advise on alternatives or new innovations to any the establishment’s emerging needs.

Why make use of a Hospitality Procurement Specialist?

Instead of researching for hours trying to find the right concept design and suppliers, a procurement specialist can tap into their established network of quality suppliers and manufacturers instantly.
Their skills and experience can support you in making decisions and buying exactly what your establishment require to ensure timely delivery of goods without the challenges of quantifying items, price negotiations, quality inspections, installation scheduling and payment processes.
Leaving you to do what you do best.