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NAI REA HOSPITALITY FFE & OSE PROCUREMENT SERVICE V3 Prepared - PowerPoint PPT Presentation

NAI REA HOSPITALITY FFE & OSE PROCUREMENT SERVICE V3 Prepared by Robert Dunn and Levan Vachnadze, January 2013 WE provide FF&E and OS&E advisory sourcing and procurement services for new hotel projects. Five thousand items


  1. NAI REA HOSPITALITY FFE & OSE PROCUREMENT SERVICE V3 Prepared by Robert Dunn and Levan Vachnadze, January 2013

  2. WE provide FF&E and OS&E advisory sourcing and procurement services for new hotel projects. Five thousand items delivered on time, within budget and to the correct standards. Over 500 international manufacturers and suppliers at your disposal

  3. Content ✓ 1 FFE & OSE – what is FFE &OSE? ✓ 2 CUSTOMERS – who requires FFE &OSE? ✓ 3 CHALLENGES & RISKS – what are the potential problems? ✓ 4 OUR SERVICE – how we help, what we do & how we do it? ✓ 5 OUR VENDORS ✓ 6 OUR PORTFOLIO ✓ 7 OUR ADVANTAGE Your Logo

  4. FFE and OSE Definitions FF&E – stands for Furniture, Fixture and Equipment A hotel without furnishings and equipment is just an empty building! Includes all the hotels’ furniture, furnishings 1 and depreciable equipment. Furnishings and equipments are split into two groups: FFE & OSE which together with the general contractor’s materials OS&E – stands for operating supplies and equipment are the soul and character of your property. Includes all the small equipment which is manufactured off site and most if it does 2 not require any installation. SO what is FFE and OSE in reality? It is the comfortable bed, the sumptuous chandeliers, the exquisite fabrics and the finest furniture. It is the fine crystal, the bone china, the silver candelabras GC– Other items (not FFE & OSE equipment ) and the softest linen. It is the best night's sleep, the perfect cocktail and that unforgettable meal. Items which are part of general/main 3 contract Ultimately, it is your guests' very first impression and most indelible memory.

  5. FFE and OSE Categories FFE OSE GC • Furniture • Glassware, • Bathroom Fixtures It is common to split FFE Chinaware and • Artwork • In room and OSE into categories, Silver technologies • Carpet and then into groups and • Kitchen Utensils • Hotel systems • Beds then further to break them • Guest Supplies • Alarm, Fire, PBX, • Fabrics down to generic items. • Guestroom UPS • Internal signage Equipment • Fit-out’s • Lighting • Bedding & towels. replaceable For full service hotels, • Heavy kitchen and materials • F&B Linen laundry equipment within the guestroom • Windows and • Cleaning Supplies • Bar and buffet there could be over 30 FFE Doors • Guest Amenities • Computers groups and over 100 OSE. • Wall, ceiling • Bathroom • Other equipment For the whole hotel there coverings accessories can be more than 5000 • Back of house. items in total. • Uniforms The Hotel FFE and OSE supplier market is very international and diversified. It is usual to deal with more than 50 suppliers located in different countries.

  6. FFE and OSE Per allocation area Back of Each FFE and OSE item is Guest Area Public Area house specific to a hotel area where it is allocated. FFE and OSE mostly have fixed Kitchen Front of house locations and their features Rooms are specific to that area . Technical Bars and restaurants Bathrooms Housekeeping Public WC Laundry Corridors Fitness centers Admin Conference and Other facilities Loading Bay banqueting Maintenance of FFE and control / supply of OSE is the responsibility of the particular hotel departments. Efficient management and control system starts with the creation of a streamlined asset register.

  7. FFE and OSE Hotels • Full Service • City Center • Select Service • Resort • The FF&E and OS&E scope and value varies • Apart Hotel • Regional • Condo • Suburban depending on hotel type, class, scale, • Boutique location and also local cultural needs of the country where the hotels are located. Type Location • For luxury hotels the cost of FFE and OSE can be over $40K per room, and for a budget hotel it can be less than 6k per room. Ownership Scale Hotels can be operated by an owner or branded or non branded management companies under franchise or management • Hotel Giants • Luxury contracts. • International Chain • Upper Upscale • Local chain • Upscale • Standalone • 4 star • 3 star / Economy

  8. Customers Type of Customers Hotel Owners The hotel management or lease contract usually states It is the owners’ responsibility to purchase the that it is the responsibility of the owner to furnish and correct standard of FFE and maintain it.. 1 equip the hotel and also to maintain and replace it. OSE is also the owner’s responsibility. International hotel chains often provide guidance on the FFE and OSE standards and procurement but do not do Hotel Operators the procurement themselves as they do not have the resources. They advise the owners to use reputable FFE operators and operators work together to ensure that standards are maintained. procurement agents with local representation . This is 2 OSE is often specifed by the operator . because owners do not normally have the in house expertise for this function. Hotel Developers The developer has to ensure that hotel FFE 3 complies with operators’ and the industry requirements and also national standards and regulations.

  9. Process Risks & Challenges Selection Delivery Legal Financial Facts: For large projects there are often 5000 items required, with • Product • Reliability • Import rules • High value over 400 purchase orders from • Vendors • Shipment • Proper RISKS many countries. experience Contracts • Proper Billing • Non-delivery All the products must conform • Disreputable to local, national and vendors international standards in terms of fire, safety, health and hygiene. Product Golden Ratio Conformity Procurement Selection between Risks team Risks if not properly managed • Diversity • Owner • Design • Experience CHALLNGES include: • Quantity • Operator • Operator • Vendor • Non delivery . standards Selection • Value • Designer • Delays. • Industry • Quality • Apartment • Unsafe products. Standards Owner • Conformity • Wrong products. • General • Guest • Safety Standards ISO • International 9001 nature of suppliers

  10. Our Service What we do Professional procurement expertise is essential to avoid a nightmare scenario of late deliveries, unsafe goods & serious over expenditure to meet the challenges and cover the risks of acquisition we offer customer our FLEXIBLE services Use any or all our services What do you require? FFE OSE GC Special Guidance Procurement services

  11. Our Services What we do Our services are divided into three groups - all available for OSE or FFE Procurement Special Services Guidance on • Planning, scope, process, 1 Hotel standards . 3 Pre-procurement Services: 2 time lines, schedules Arranging FF&E specialists Operator’s standards. /consultants • Budgets and lists . • Procurement companies. • Designers. Product brands. • Sourcing ,samples and • Kitchen consultants. • Laundry consultants. Trusted manufacturers, product research. • Signage consultants suppliers and their • Model guestroom. • Uniform designers. distributers. • Tendering ,quotations orders Post-procurement Services: • Delivery Control • Logistics & delivery • Establishing Fixed Asset register • Co ordination of installation

  12. Our Service How we do it – service pillars Represent Act Ensure Tailor • We represent the • In particular we act • Ensure that the goods • We offer a flexible interests of the on behalf of the are purchased within service tailored to the customer in matters Customer in the budget, to the correct needs of the Client relating to FF&E and acquisition of standards and on OS&E. merchandise for the time.. Clients' direct purchase. This will allow owners to save money; the Our procurement experience and expertise will allow operator will ensure that standards are Customer to leverage spend and also product and supplier appropriate and the guest will benefit from knowledge, not typically found in a procurement furniture and equipment which exceed department. expectations

  13. Our Service How we procure in the case of Georgia Select • design layouts. • tender • design specifications. • best deals Service Stages • line budget –FF&E and • scope of FFE . • final budget OS&E • initial budget. • placing orders • vendor search/selection • online sample catalogue • detail budget /timeline Analyze Procure Customer Overseas NAI REA – Vendors Tbilisi Office NAI REA Paris Office

  14. Our Vendors Geography and preferences Europe China Signage Furniture Carpet Lighting Glassware&porcelan Stainless Steel Minibars & safes Chinaware . Middle East India . Room Equipment bed Linen F&B equipment fabrics Guest Supplies towels East Asia UAE . TV sets Equipment Banquet furniture Furniture Luggage trolleys Audio-video . Our database contains ~500 tested and reliable vendors

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