Main steps in the procurement process.
To be adapted to the needs of the project.
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I normally work with the Clients’ local team and focus on the procurement of the   high volume and high value goods, to be imported, while the Clients’ team manages the local activities.

(A)  Kickoff

The procurement process begins with a review of the project brief.

 

The Client is sent the following documents for initial discussions:

  • Area configuration questionnaire.
  • OS& E scope document.
  • Time line of process.

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Client sends me 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.

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(B)  Scope, time and contract.

I  prepare a proposal for the Client which includes:

  • Scope of work.
  • Scope of purchases.
  • Schedule of milestones.
  • Schedule of order batches.

Once the above has been agreed a contract is signed with the Client.

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(C) Product standards, master-lists, 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.
  • 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

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  • 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.
  • 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.
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(D)Competitive tender process and review of quality of samples.

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.

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  • 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.

 

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(E) Purchase order and invoice payment process.

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.

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  • 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

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(F) Inspection and logistics process.

I agree with Client which goods are to be inspected and by whom, before shipping of goods at factory and warehouse.

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  • Pre-shipment inspection.
  • Ensure appropriate packaging.
  • Establish storage requirements eg local warehouse.
  • Client appoints  warehouse.
  • Client makes invoice  payment  (according to terms) to suppliers before shipment.
  • Packing lists and pickup address provided by suppliers to Client.
  • Packing list will be by pallet, and include the following details: 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.
  • Packing lists emailed to local warehouse.
  • When the shipment is ready the Client organises the freight forwarder to   pick up the goods and transports to their warehouse.
  • Client monitors the logistics, tracking and deliveries to warehouse and then hotel.

 

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(G) Receipt of goods and installation (normally by Client)

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

  • The Client checks packing list v quantity received v invoice quantity.
  • The Client follows up with supplier regarding any discrepancies or quality issues.

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  • Finalisation of the inventory in warehouse and then hotel.
  • Goods entered into hotel timing schedule, agreed with the hotel.
  • Hotel requisitions equipment from warehouse to 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.
  • Installation coordinated by   Client and hotel.
  • Stock control. (by hotel)
  • Quality control at point of delivery  at warehouse(boxes) and  hotel.

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(H)  Finalisation process.

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

  • 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.

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  • 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.

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Who does what?