20 May Why are Hotel procurement companies important for hotel owners?
Why are hotel procurement companies important to hotel owners?
Hotel procurement companies play a vital role for hotel owners. The Procurement process consists of all sourcing activities, strategic decision making and negotiation with vendors. Purchasing is only how the goods and services are ordered. The best procurement companies tend to follow the whole process and even get involved in the delivery and installation at site thus assisting hotel owners in more ways than one. Below are just some of the added values of working with hotel procurement companies instead of using an in-house sourcing team.
Pre-Qualified Suppliers: An experienced procurement company will usually have an extensive pre-qualification process to ensure that they only recommend qualified and trustworthy vendors on every project. The process of conducting quality assurance on vendors is one that is lengthy and requires knowledgeable industry professionals with prior experience in manufacturing, trading and supply chain.
Purchasing Power: Experienced hotel procurement companies have what is commonly known as purchasing power, which enables them to get better deals than anyone else. This tends to be the case with procurement companies that have multiple projects running. As the saying goes ‘the more the merrier’. febc tends to average around 20% savings on their client’s approved budgets.
Understanding Brand Standards: It is extremely helpful to work with procurement companies that understand hotel operator brand standards as this can really help save time on your project.
Peace of mind: Last but not least ‘peace of mind’. It is vitally important for hotel owners to get value for money and this can only come with a hotel procurement company that get involved from design management to handover and soft opening. febc gets involved right from the start of the project and continue all the way through to the end.