We are all familiar with the procurement process and the jargons that come with it. However, when it is time for execution, it is never hassle-free!
SPEED IS THE ULTIMATE FACTOR IN PURCHASINGLet’s admit it; the procurement process is more than just phone calls, meetings or numbers. You are called upon to make countless decisions, from settling on an overall aesthetic with your designer to identifying the right solutions for your projects.
That’s where we come in - we have access to the best-in-class industry specialists across the globe.
Be it FF&E, OS&E or Turnkey operations – We have them all covered.
We blend our vast global and local expertise from our initiatives across the world to provide you and your team a remarkable depth and breadth of procurement capabilities at a terrific value.
Simply put, we are a one stop advisory to all your procurement related needs in the hospitality, residential, commercial, retail and SEZs arena.
Why IDE?One needs to ensure frequent and detailed reporting, have transparency in the FF&E & OS&E purchasing process, in case of a setback one needs to know how it will be resolved and make adjustments as needed, choose trustworthy vendors, consult the designers… the list is endless. Therefore it becomes crucial to approach this process with a strategy to maximize resources and prevent and prepare for the common roadblocks in procurement. An organized, efficient procurement consultant makes a massive difference in this process. The easiest and most effective option is to partner with a consultant who has an extensive library of established vendors, to carry out all of this. Our consultants at IDE are the best at what they do. We leverage our huge cache of knowledge, along with our ability to engage with the stakeholders to fully understand the existing market and its possibilities. We work closely with key decision makers to deliver the new vision.
Here are 3 timeless effecient practices we recommend to help you get to completion with the fewest pitfalls.
Best Practice # 1: Solid paper trail is key.
Ensure you create a detailed paper trail to help bring the project in on time, on budget. An average project will have at least 1000 different pieces of paper. Having a paper trail and knowing how to follow it can go a long way in preventing an ambush.
Scenario:Recently a 40 story residential project in Qatar seemed to be headed for disaster when the supplier notified that shipment the goods which were due were still in China. Not only would this delay the renovation by almost 5 weeks but the cost to reschedule installation teams would be extremely high in this market. The Purchasing professional produced the paper trail with original specs, approved sample, deposit check and the on-going communications reaffirming the agreed upon delivery date. When the supplier realized this, they took a drastic step of flying the products to Qatar without any additional cost to the owner in order to meet the installation deadline.
Best Practice # 2: Get the consultant involved right from the beginning
Get the consultant involved at the very beginning. Most consultants work on a flat-fee basis, so it doesn't cost any more to bring them in at the earliest project stage. In fact, it often saves money and headaches for everybody involved.
Scenario:With the recession long gone, the manufacturing delivery time frame has been reversed and is getting longer. So, an architect tells the story of a project in Chennai in which the owner had decided to do the purchasing in-house. When the project was nearing the ordering FF&E, a key vendor shifted his delivery from 6 weeks to 12 weeks. A procurement consulting firm was then brought in to find alternative to meet the original schedule.
Best Practice # 3: If you don’t have the time to get it right, you certainly won’t get it twice
Brand sign-off is just one of the thousands of items, where a purchasing professional adds value to the project. To make sure that you have a happy ending for your next hotel development or renovation project, make sure that you engage a procurement consultant who has the skills, systems and expertise to respond to today's rapidly changing environment.
With so many revisions occurring in hotel standards today, make sure that a brand vice president or higher, signs off in writing on the FF&E as soon as the specs are approved. Make sure to obtain the signature part of your paper trail. This small step will help avoid having to scrap a perfectly good product or becoming a victim of lengthy delays in delivery because the brand standards have changed. Based on recent projects our firm has been involved in, about one-in-three had incorrect spec books, due to multiple changes in standards. It is the owner's responsibility, as franchisee, to get the brand's sign-off on all FF&E. It is the purchasing professional's responsibility to make sure the owner gets that signature.