Process Jan 2022 (smart phone) – Robert Dunn Hotel Procurement

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6,7&8

Procurement Process (OS&E).

To be adapted to the needs of the project.

Process and Scope

Process-Summary of how it works.

Step 1 Client provides hotel configuration eg by completing the area questionnaire.

download example

I provide preliminary proposal.

Step 2 Client agrees the scope of purchases..

We agree the purchasing contract.

Step 3 I create the OS&E Masterlists… Client reviews and agrees the quantities.

Step 4 I advise on best suppliers and standards… Client tenders to the suppliers.
I analyse the offers and present the best deals to Client.

Alternatively for some projects I can organise one quotation from my current ‘Preferred Suppliers/Manufacturers’ who have recently provided competitive prices, products to five star hotel standards and excellent service.

Step 5 Client agrees terms with the suppliers, places the purchase orders, and pays the supplier invoice.

Step 6 Where required I make pre-shipment check at suppliers’ warehouse in EU… Client organises logistics, local clearance, delivery to warehouse.

Step 7 Hotel receives the goods into the hotel.

Who does what?

I normally work with the Clients’ local team and focus on the Front end Activities:

Master lists/BOQs; Advice on Product Standards/ Brands/ Suppliers; Analysis of Quotes.

The Client manages the Local Activities – Purchase Orders; Invoice Payment; Logistics, Delivery and Installation.

Step 1 Kickoff (by Robert/Client)

The procurement process begins with a review of the project brief. I then prepare a preliminary proposal.

Request a preliminary procurement proposal.

Email the following information to robert@robertdunn.eu and I will prepare a proposal.

Download, complete and return area questionnaire (if you have this information).

Step1-2-Area-questionnaire-New 2019 v2

Alternatively if you don’t have this information send the number of guest rooms, restaurant/bar outlets, meeting rooms, ballroom and any other relevant areas.
The standard of hotel.
Name of hotel operator if you have one.

Proposal Includes.

Proposal includes:

OS& E scope document.
Time line of process.
Scope of work.

Client provides such information as follows to allow me to evaluate their needs:

Project brief.
Expected opening date.
Standard of hotel.
Operator’s name and brand.
Number of guestrooms and restaurants.
Location of hotel.

Scope of OS&E

What is in the OS&E Procurement Package?

OS&E is short for Operating Supplies and Equipment.

It is the small equipment which is manufactured off site and most if it does not require any installation. Most of it is “off the shelf” and chosen from websites, catalogues and brochures. In brief the term includes equipment for:

Guestroom
Conference and banqueting
Restaurant and bar
Buffet
Front of house
Public washrooms
Room service
Security and control
Office and training
First aid
Housekeeping
Back of house
External areas
Uniforms -(Not in the OS&E package) Usually specified and purchased by hotel .

FF&E is not in the OS&E Package

What is FF&E ?

FF&E is short for Furnishings, Fixtures and Equipment. It includes the following:

Casegoods (bedroom headboard, side table, coffee table)
Loose furniture eg Chairs Tables
Decorative Lighting
Chandeliers
Mirrors
Artwork
Curtains
Blinds
Bed covers
Carpet and rugs
Beds
Signage
Plants

Not in OS&E or FF&E Package

Kitchen, buffet and laundry heavy mainly fixed equipment
IT /systems/software
Consumable supplies such as food, drink or paper products
Wall coverings, hard floor finishes, wall tiling
Plumbing fixtures such as faucets,washbasins, baths or wcs
Built-in millwork such as the reception desk
PABX systems and handsets
Computer cabling.

Step 2 Agree Contract.

Contract to be agreed with Client.

Terms of contract to be agreed.

Scope, time & contract. (Robert/Client)

Procurement of OS&E by Robert.

Does not include FF&E which is by Client or other.

Agree scope of purchases.
Agree scope of work.
Agree milestones.

For refurbishments service also includes:

Audit OS&E in hotel.
Prepare report on condition of equipment.

Scope of OS&E.

Order batches and time.

Step 3 Product standards, master-lists, budgets, BOQs.. (By Robert)

This stage requires input from the hotel, the operator, Client and the designer.

Master-list process - more info.

The process includes:

Client to send: floor plans, layout, room matrix.
Review of the above.
Review of the hotel’s operating policies (if available) in terms of OS&E eg F&B policy, guestroom, minimum standards, recommended suppliers.
Propose products to compliment design brief.

Client has use of in house online product showcase where ‘project product moodboards’ can be created.
Prepare scope of purchases.
Identify which products are locally procured by Clients local partner and or hotel. (eg photocopier.)
Crosscheck with other scopes eg FF&E , kitchen, plumbing, AV to ensure no nil or double counts.
Prepare detailed OS&E Master lists with quantities and generic specs
Alternatively review the Clients own OS&E lists in terms of par coefficients and quantities and ensure operators brand /supplier requirements are met.

Guidance on suppliers and standards.
Identify products that may need to conform to local regulatory standards eg electrical, fire, safety, health and hygiene.
Establish which (if any) national accreditation body (eg UKAS, SONCAP) governs standards and if they have their standards/certificate to which goods must conform.
Establish which third party accredited standards agency can be used (eg SGS) to provide appropriate certification.
Agree which processes and procedures to prepare. eg order/invoice approval process, delivery process.
Guidance on quality assurance process eg sample approval and pre-shipment quality inspection .
Review the detailed OS&E Master lists with the Client and hotel operations. (often through skype)
Update final lists.
Prepare the bills of quantities (BOQ).
Prepare the hotel product spec/standards control book for main items in each project (OS&E).
Agree the shortlist of suppliers (normally already pre-qualified) with Client and operator.
Check colours and finishes with designer.

Step 4 Competitive tender process. By Client.

Selection of suppliers and products is normally through competitive tendering (normally 2-3 per main bid package)

Tender process - more info.

Service ensures best quality and value for money. Local project’s needs, terms and conditions are met, including delivery & installation dates. Pre-qualified suppliers are tendered to .

Preferred suppliers are those that have recently provided competitive prices, products to five star hotel standards and excellent service. I prepare lists /BOQs /Standards /One Quote from one competitive supplier. Client places their own order, pays invoice and origanises logistics /delivery and installation.

If all other factors are similar (price, quality, service, maintenance and resupply etc), a local supplier may be chosen over a remote supplier as the reduced level of transport represents a positive environmental benefit. In addition suppliers normally conform to my Green Policy.

Agree suppliers with Client/operator for tender purposes.
Agree schedule of samples with Client and Operator.
Organise samples for the final presentations of equipment including the table top presentation, banquet furniture presentation, model room samples presentation, for operations.
Final presentation coordinated by Client.
Hotel approves samples for quality control purposes.
Prepare batch priorities for the tender/order e.g. batch 1 longest lead time items like bed linen.
Timing as per project timetable.
Prepare and agree tender documents.
Tender to suppliers.
Ensure “devil in the detail” analysis of quotations.
Negotiate terms and prices, to ensure value for money.
Ensure local spare parts and resupply availability.
Ensure goods conform to local codes.
Value engineering.
Suggest potential cost savings solutions eg using (equal and approved) suppliers.
Hotel coordinates the testing of quality e.g. laundering of bedding, towels and uniforms.

About Suppliers and Manufacturers.

A network of international pre qualified and trusted suppliers provide high-quality, cost competitive products and services. Criteria as follows:

Provide high-quality, cost competitive products.
Reliable services.
Financially secure.
International network providing centrally negotiated prices.
Most conform to third party certification eg ISO standards (9001 & 14001) & use western managed quality control systems.
Proven reliability and history of successful projects / references.
Green in manufacturing process in terms of water usage, energy efficiency, sustainability of materials and effect on environment. ISO, EMAS, FSC, FISP

About Products and Brands.

Many products direct from international manufacturers.
Conform to operator’s brand and product standards.
Conform to international five star hotel standards.
Conform to local & national standards, codes and regulations.
Conform to fire, safety, health and hygiene and electrical standards BS EN ISO ANSI or local equivalent.
Green in terms of water usage, energy efficiency, and recycling reusing.
Balance of design, functionality and durability

Procurement Due Diligence.

The ‘Procurement Due Diligence‘ process is normally finalised at the pre-tender and tender stage. The process includes:

Analysis of suppliers’ financial position.
Review of suppliers’ environmental policy.
Risk assessment and protection.
Confirm suppliers’ references including proven history of projects.
Confirm suppliers’ commitment to quality including 3rd party certificates.
Establish suppliers’ test certificates.
Factory visit if required by Client.
Ensure products conform to international hotel standards as well as local and national standards including- fire, safety, electrical, food, local standards.
Agree warranty terms and payment terms.
Maintenance services.
Confirm lead time.
Confirm contract law (normally English).
Other information which will be required includes – installation services, geographical coverage and currency terms.

Step 5 Orders.

Purchase order and payments(by Client).

Order process - more info.

Once all offers have been analysed I provide the Client with the best offer for them to place the purchase orders. The process includes:

Provide Client with purchase recommendation (PR) with the quotation, terms and conditions, including warranties.
In the case where local hotel operations have still to make a decision provide Client with PR-TBF (to be finalised by Client with Hotel). (to be discussed)
Client finalises terms with suppliers e.g. payment terms and delivery schedule.
Client places their purchase orders direct with suppliers according to the purchase recommendation from us (PR). The contract is between Client and the supplier.
Client pays invoice(s) as per agreed terms with supplier.
Reports to be agreed with Client (BSPAU) : Budget, spend, pending, actual to date, under/over.
Advise on standard terms and conditions.
Goods are then manufactured/packed and prepared for shipment.
Monitor -production and preparation for shipment.
Payment procedures implemented by Client e.g. advance payment (if agreed), L/C, bank guarantees, payment bonds etc

Step 6 Logistics

Pre-shipment inspection. (by Robert for EU/UK and or third party inspector)

Logistics. (by Client) who appoints freight forwarder whose services includes:

Logistics - more Info.

Ensure correct documentation for local importation. Check with Client’s Local Team.
Ensure cargo insurance.
Ensure appropriate packaging.
Packing lists and pickup address provided by suppliers to freight forwarder/ local customs broker, Robert, Client/Client’ Local Team(importer).
Packing list will be by pallet, and include the following details in English: supplier details, contact details, email, country of origin, country of supply, customer address, delivery address, pallet reference, hotel name, purchase order number, invoices number, weight,volume , number of pallets.
When the shipment is ready the supplier advises the freight forwarder to pick up the goods and transport to the freight forwarder’s warehouse for onward shipping to local warehouse then hotel..
Client makes invoice payment (according to terms) to suppliers before shipment.
Client monitors the logistics, tracking and deliveries
Freight forwarder provides status reports to Client/Client’s Local Team(importer) and Robert …

Step 7 (G) Import/Clear goods; Receipt of Goods (coordinated by Client’s local team) through freight forwarder/local customs broker

Installation (by Client’s local team/Hotel).

It is essential that a strict control be exercised on the delivery of material to the project.

Import goods - more info.

Client’s local import team coordinates importation and logistics, normally through freight forwarder/local customs agent/qualified broker. Services include:

Shipment cleared at port.
Organise quality control, testing/certification that entitles importation,and any other local documentation.
Shipment warehoused until successful clearance.
Shipment transported to local warehouse or hotel.
Goods unloaded at warehouse or hotel.
Delivery checked with packing list.
Discrepancies and or defective items identified and suppliers advised.
If goods stored at warehouse then hotel requisitions goods by call off from warehouse to hotel.

Delivery - more info.

Phase 7 Delivery and installation at hotel (by Client’s local team/Hotel operations site team).

Goods delivered to hotel.
Goods unloaded at hotel.
Delivery checked with packing list. ( Client’s local team and hotel operations)
Quality control for discrepancies and or defective items identified and suppliers advised. ( Client’s local team and hotel operations)
Unpacked and placed ( Client’s local team in coordination with hotel operations).
Items labelled as per agreed Asset Management system.
Goods entered into hotel timing schedule, agreed with the hotel.
Distribution within hotel by assigned personnel.
To help with transporting to guestrooms, equipment can be packed in linen trolleys Alternatively packed into room boxes. Each box has a packing list and room number corresponding to room schedule of OS&E.
Sign out of any non-requisitioned equipment to hotel stores.

Step 8 Finalisation process. (by Client’s local team)

This stage is required to verify quality and ensure that the procurement process is completed and any issues satisfactorily resolved.

Finalisation process - more info.

Final invoice payments by Client.
Carry out snagging , identify missing or damaged items and arrange for delivery or repair as appropriate
Prepare complete handover document for each area or room upon completion of installation.
Prepare final procurement manual of -inventory list, purchase orders, warranties/guarantee, fire certificates, maintenance and technical details, suppliers lists,
Review on site main OS&E in terms of quality.
Help with invoice approvals/invoice reconciliation and insurance claims.
Assistance with invoice approval and assistance in resolving vendor disputes.
Obtain all necessary standards certificates eg electrical, fire and safety and forward onto Client.