- Front end Activities including: Master lists/BOQs; Product Standards/Brands/Suppliers; Tender Analysis;Best Deal Recommendations
- Local Activities :Local procurement;Tender;Purchase Orders; Invoice Payment; Logistics, Delivery and Installation.
Phase 1 Kickoff . Establish Hotel Configuration. (Robert/Client)
The procurement process begins with a review of the project brief. We then provide a preliminary proposal which includes:
- OS& E scope document.
- Time line of process.
Client provides such information as follows (if available) 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.
Phase 2 Establish scope, time & contract. (Robert/Client)
Procurement of OS&E by Robert.
Procurement of FF&E by Other.
- Agree scope of purchases.
- Agree scope of work.
- Agree milestones.
- Audit OS&E in hotel.
- Prepare report on condition of equipment.
- Agree purchases with Client.
Once the above has been agreed a contract is signed with the Client.
Client to send: floor plans, layout, room matrix.
Phase 3 Master lists, product standards, brands, suppliers, budgets, resources and processes
This stage requires input from the hotel, the operator, Client and the designer. The process includes:
- Review of the hotel’s operating policies (if available) eg F&B, guestroom, minimum standards recommended suppliers.
- Propose products to compliment design brief.
- Review floor plans, layout, room matrix in terms of equipment needs.
- Client has use of in house online product showcase where product ideas are presented. They create a ‘project wishlist’ of products, to be included in tender process.
- Prepare scope of purchases. Identify which products are locally procured by local partner. (eg photocopier.)
- Crosscheck with other scopes eg FF&E , kitchen to ensure no nil or double counts.
- Prepare detailed OS&E Master lists with quantities and generic specs
- or 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).
- Operations have use of my Online Showcase of Ideas to highlight their preferences (My Project Wish list).
- 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.
Phase 4 (D) Competitive tender process. (by Client)
Coordination of samples and analysis of quotes (by Robert)
Selection of suppliers and products is normally through competitive tendering ensuring best quality and value for money. Local project’s needs, terms and conditions are met, including delivery & installation dates. Prequalified suppliers are tendered to (normally 2-3 per main bid package).
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.
As an alternative fast rack fee based service, I can provide one quotation from my current ‘Preferred Suppliers’ who have recently provided competitive prices, products to five star hotel standards and excellent service.
- 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.
Phase 5 (E) Purchase recommendations (by Robert).
Purchase order and invoice payment process(by Client/Owner).
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 PR-TBF (to be finalised by local partner with Hotel).
- Client finalises terms between them and 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
Phase 6 (F)
Pre-shipment inspection (by Robert for EU/UK and or third party inspector)
Logistics (by Client) appoints freight forwarder whose services includes:
- Ensure correct documentation for local importation. Check with Client’s Local Team.
- Ensure appropriate packaging.
- Ensure cargo insurance.
- 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 …
The Import/Export Process:
The major elements involved in international trading include:
- contract of sale(or agreement).
- foreign currency.
- export packaging.
- export formalities.
- local export cartage.
- cargo insurance.
- international freight (air and sea).
- custom regulations and taxes.
- quarantine regulations.
- local import cartage.
Phase 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.
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.
Phase 7 (G) 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.
Phase 8 (H) Finalisation process. (by Client’s local team)
To verify quality and ensure that the procurement process is completed and any issues satisfactorily resolved. The process includes:
- Final invoice payments by Client.
- Final inspection.
- 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,
- Provide all other required documents for handover and use.
- Finalisation of the inventory at hotel. Stock control. (by hotel)
- Review on site main OS&E in terms of quality.
- Invoice reconciliation, insurance claims, resolve vendor disputes.
- Obtain all necessary standards certificates eg electrical, fire and safety.