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why procurement?<br />FURNISH provide service-driven procurement solutions to the service industry. <br />We provide a ful...
why procurement?<br />Like many industries, it takes a combination of various skills to realize  a project. <br />A procur...
 Preparation of  detailed procurement schedules in line with the master program
 Issuance of detailed product listings for operator guidance and selection if necessary (OS&E)
 Receipt and management of specifications for FF&E and OS&E
 Experienced review of FF&E specifications and drawings for quantity verification
 Virtual and final mock-up rooms (if necessary)
 Table top presentations
 Vendor pre-qualification
 Tender process
Negotiation of better prices through established vendor relationships, extended vendor database and bulk buying
 Cost adjudication and recommendation
 Purchasing  using a purpose built procurement management system
 Accounts management
 Production and quality management
 Logistics management
 Installation management
 Labelling and location management
 Collation of fire certificates, warranties & product data after installation
 Asset report creation and handover
 Transparency throughout</li></li></ul><li>advisory services<br />If you are an owner, developer or hotel operator, we can...
Are the specs complete?
How much will/should the FF&E cost?
Where can cost savings be made and do we buy as specified?
Who should supply the custom-built furniture?
What operating supplies must be bought and at what par levels?
Will the hotel operator’s minimum standards be met?
What is a realistic time-line?
What are optimum payment and freight terms?
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FURNISH India - Procurement Services Feb2010

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Hospitality procurement solutions by FURNISH in India and logistics solutions by Schenker India.

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Transcript of "FURNISH India - Procurement Services Feb2010"

  1. 1.
  2. 2. why procurement?<br />FURNISH provide service-driven procurement solutions to the service industry. <br />We provide a full spectrum of hospitality furnishing and equipment services; from design review to installation. We offer the most pragmatic, client-oriented approach to hospitality FF&E and OS&E consulting and supply, with an emphasis on system generated analysis, reporting and product quality.<br />What is Hospitality Procurement?<br />Procurement can be defined as the purchase of merchandise or services, at the optimum possible total cost, in the correct amount and optimum quality.<br />Hospitality procurement applies this principle to the purchasing of contract quality Furniture, Fixtures and Equipment (FF&E) and Operating Supplies and Equipment (OS&E) for the hospitality industry, summarized by the following steps:<br />Step 1 – Review project requirements and establish budgets<br />Step 2 – Identify suitable sources<br />Step 3 – Obtain competitive prices and adjudicate<br />Step 4 – Place orders, track production and deliveries<br />Step 5 – Manage installation & delivery <br />Step 6 – Reconcile accounts & manage asset registry <br />
  3. 3. why procurement?<br />Like many industries, it takes a combination of various skills to realize a project. <br />A procurement team with the right knowledge and know-how should add the following essential components to the process: <br /><ul><li> Preparation of preliminary budgets for FF&E and OS&E based on project specific information
  4. 4. Preparation of detailed procurement schedules in line with the master program
  5. 5. Issuance of detailed product listings for operator guidance and selection if necessary (OS&E)
  6. 6. Receipt and management of specifications for FF&E and OS&E
  7. 7. Experienced review of FF&E specifications and drawings for quantity verification
  8. 8. Virtual and final mock-up rooms (if necessary)
  9. 9. Table top presentations
  10. 10. Vendor pre-qualification
  11. 11. Tender process
  12. 12. Negotiation of better prices through established vendor relationships, extended vendor database and bulk buying
  13. 13. Cost adjudication and recommendation
  14. 14. Purchasing using a purpose built procurement management system
  15. 15. Accounts management
  16. 16. Production and quality management
  17. 17. Logistics management
  18. 18. Installation management
  19. 19. Labelling and location management
  20. 20. Collation of fire certificates, warranties & product data after installation
  21. 21. Asset report creation and handover
  22. 22. Transparency throughout</li></li></ul><li>advisory services<br />If you are an owner, developer or hotel operator, we can help answer questions in the early stages of development, such as:<br /><ul><li>Who should design the interior?
  23. 23. Are the specs complete?
  24. 24. How much will/should the FF&E cost?
  25. 25. Where can cost savings be made and do we buy as specified?
  26. 26. Who should supply the custom-built furniture?
  27. 27. What operating supplies must be bought and at what par levels?
  28. 28. Will the hotel operator’s minimum standards be met?
  29. 29. What is a realistic time-line?
  30. 30. What are optimum payment and freight terms?
  31. 31. How should goods be coded for installation and asset management? </li></ul>The earlier these questions are answered in the project life-cycle, the easier it becomes to merge and meet the expectations of owner, designer, developer and operator – and ultimately, the end-user. <br />
  32. 32. FF&E<br />Sourcing of furniture, fixtures & equipment (FF&E)<br />FURNISH source and supply all of the following typical hotel contract furniture, fixtures & equipment (FF&E), custom made to suit all hotel segments. We manage the process from interior design specification to shop-drawing and from production to installation; ensuring that the right item is delivered on time and within budget: <br /><ul><li> Timber and veneer case-goods
  33. 33. Fully and semi-upholstered seating
  34. 34. Rattan, woven, and mixed material furniture
  35. 35. Outdoor furniture
  36. 36. Heritage & replica furniture
  37. 37. Art and accessories
  38. 38. Mirrors
  39. 39. Decorative fixed and free-standing lighting
  40. 40. Drapery and soft-goods
  41. 41. Fabrics, trims, tassels and tie-backs
  42. 42. Carpets & Rugs
  43. 43. Leathers
  44. 44. Wall-coverings</li></li></ul><li>OS&E<br />Sourcing of operating supplies & equipment (OS&E)<br />FURNISH source and supply the following typical hotel operating supplies and equipment (OS&E). We can develop the list of required OS&E for the hotel or purchase precisely what is specified by the hotel management. Furthermore, FURNISH are in a position to negotiate competitive rates from all of the leading brands as well as custom-manufacture items such as linens, toweling or chinaware to suit any project requirements:<br /><ul><li> Glassware, Chinaware, Flatware, Hollowware
  45. 45. Electronics and AV Equipment
  46. 46. Linens & Toweling
  47. 47. Uniforms (Design & Supply)
  48. 48. F&B Equipment
  49. 49. Gym and recreational equipment
  50. 50. Kitchen Equipment
  51. 51. Contract Mattresses
  52. 52. Vehicles (Golf Buggies, Buses, Service)
  53. 53. Conference & Banqueting Equipment
  54. 54. White Goods
  55. 55. Housekeeping, Security & Office Equipment
  56. 56. Amenities</li></li></ul><li>FURNISH Projects<br />
  57. 57. benefits by example<br />Some examples to illustrate the benefits of a procurement agent:<br /><ul><li> ID Specification Review:</li></ul>Inlay detail, cable management & drawer detail missing<br />No cross reference to finishes schedule<br />This depth is questionable for use as a desk in a suite.<br />Not suitable for commercial use<br />
  58. 58. benefits by example<br /><ul><li> Cost adjudication and recommendations of suitable alternatives:
  59. 59. Project: Property Developer Sales Centre
  60. 60. Item: 0630 Lounge Chair
  61. 61. Specified Source: Vitra
  62. 62. Reference: Jasper Morrison Park Armchair
  63. 63. Country of Origin: Germany
  64. 64. Quantity: 30
  65. 65. Cost: €3,000 (ex-works) – in own Material
  66. 66. Total Cost: €90,000 (ex-works)
  67. 67. These items have been sent for pricing; for your reference please visit: http://www.twenga.co.uk/offer/6967/846940513594623046.html
  68. 68. Project: Property Developer Sales Centre
  69. 69. Item: 0630 Lounge Chair
  70. 70. Alternative Source: LigneRoset Contract
  71. 71. Reference: Gaspard Armchair
  72. 72. Country of Origin: France
  73. 73. Quantity: 30
  74. 74. Cost: €1,060 (ex-works) – in own Material
  75. 75. Total Cost: €31,800 (ex-works)
  76. 76. These items have been sent for pricing; for your reference a quotation is available</li></li></ul><li>benefits by example<br /><ul><li>Cost adjudication and recommendations of suitable alternatives:
  77. 77. Project: Property Developer Sales Centre
  78. 78. Item: 0230 Desk Chair
  79. 79. Specified Source: Vitra
  80. 80. Reference: Eames Chair EA 119
  81. 81. Country of Origin: Germany
  82. 82. Quantity: 15
  83. 83. Cost: €2,040 (ex-works)
  84. 84. Total Cost: €30,600 (ex-works)
  85. 85. These items have been sent for pricing; for your reference a quotation is available
  86. 86. Project: Property Developer Sales Centre
  87. 87. Item: 0230 Desk Chair
  88. 88. Alternative Source: Viborg
  89. 89. Reference: PA SM 01 (Black Leather)
  90. 90. Country of Origin: Italy
  91. 91. Quantity: 15
  92. 92. Cost: €720 (DDP)
  93. 93. Total Cost: €10,800 (DDP)
  94. 94. These items have been sent for pricing; for your reference a quotation is available</li></li></ul><li>benefits by example<br /><ul><li> Established vendor relationships and product customization</li></li></ul><li>benefits by example<br /><ul><li> GLOBAL SOURCING – rendering & pricing services for hotel rooms of any standard </li></ul>FF&E: € 4,800<br />Estimated DDU India.<br />Products from China & the Philippines <br />
  95. 95. benefits by example<br /><ul><li>Global sourcing – examples of our newly refurbished room at the One& Only Dubai </li></ul>Fabric: INDIA<br />Lighting: UK & CHINA<br />Seating: INDONESIA<br />Casegoods: VIETNAM & UAE<br />Fabric: GERMANY<br />Carpet: INDIA<br />
  96. 96. benefits by example<br /><ul><li>Respecting Design & Delivering Quality</li></ul>Sourcing the right product, from the right vendor, for the right property<br />
  97. 97. common procurement pitfalls<br />It is a fact of life that everyone makes mistakes. Winston Churchill said: “All men make mistakes but only wise men learn from their mistakes”. We have identified the following pitfalls that occur on almost all projects; we have implemented procedures to mitigate these pitfalls:<br /><ul><li> Lack of uniform procedures and processes
  98. 98. Working with incomplete specs
  99. 99. Not tracking spec receipt and revisions
  100. 100. Working without finish samples
  101. 101. Not tracking sample receipt and revisions
  102. 102. No time or process management/no planning
  103. 103. Using inexperienced staff /no training offered
  104. 104. Buying last minute at a higher price
  105. 105. Buying expensive/no negotiation
  106. 106. Not buying with suitability in mind
  107. 107. Buying without consolidation in mind including multiple projects/budgets
  108. 108. Using the same vendors too often without competitive bidding/shopping around
  109. 109. Using troublesome vendors/no pre-qualification
  110. 110. Incorrect COM calculations leading to incorrect quantities being ordered without being checked by experienced staff
  111. 111. Lack of communication with the project team
  112. 112. Lack of clear, concise status reporting
  113. 113. Lack of meaningful management reporting
  114. 114. Lack of overall efficiency
  115. 115. Lack of overall procurement process from start to finish
  116. 116. Lack of experienced/hands-on staff working on the project
  117. 117. Manpower or resource overload</li></li></ul><li>the FURNISH workflow<br />1A. FF&E Specification Review, Budgeting and BOQ finalisation<br />1B. Formulate OS&E Requirements List, Budgeting and BOQ finalisation<br />2. Tendering and Cost Adjudication, Recommendations<br />3. Mock-up room [prototypes] with approved FF&E and OS&E table-top presentations<br />4. PO generation, Production, Freight Management and Delivery Scheduling<br />5. Receipt of Goods & Inventory Management<br />6. Installation & Hand-over, Final Accounts & Asset Register<br />
  118. 118. MARKETPLACE TM<br />FURNISH Marketplace – proprietary e-procurement <br />
  119. 119. MARKETPLACE TM<br />Purchase Order, Invoice & Delivery Reconciliation<br />
  120. 120. MARKETPLACE TM<br />Detailed Project Scheduling by Commodity<br />
  121. 121. reporting <br />
  122. 122. reporting <br />
  123. 123. reporting <br />Please contact us for a complete demonstration<br />
  124. 124. additional services <br />At FURNISH we want to play a part in integrating the various design elements on a hotel project. Our involvement from the early stages of FF&E design, as well as being the purchasers of restaurant equipment and uniforms, puts FURNISH in an ideal position to manage and implement the various graphic design elements of a hospitality project, through a strategic partnership with a leading graphic design agency. Our partners offer complete design solutions in:<br /><ul><li> Corporate identity
  125. 125. Food & beverage outlet branding
  126. 126. Logo design
  127. 127. Menu design
  128. 128. Marketing collateral
  129. 129. Signage
  130. 130. Corporate identity</li></ul> GRAPHICS PARTNER<br /> TMH<br />www.tmh.ae<br /> Their clients include:<br />
  131. 131. additional services <br />Through the formation of strategic partnerships with specialist freight forwarders and a provider of installation services, FURNISH can manage the order process and deliver total FF&E and OS&E solutions right up until the placement of the last item. Our freight and installation partners offer the following services:<br />
  132. 132. DB Schenker - Hotel Logistics Services<br />A 5 Start Hotel Logistics Service <br />DB Schenker India<br />Gaurav Kapoor<br />Head Marketing & Special Projects<br />New Delhi / India<br />
  133. 133. DB Schenker in IndiaProfile<br /><ul><li> 31 office locations.
  134. 134. 31 warehouses.
  135. 135. 1300+ logistics experts.
  136. 136. More than 62,000 TEUs handled by ocean in 2008.
  137. 137. More than 60,000 Tons of cargo by air in 2008.
  138. 138. More than 8,50,000 sq. ft. of warehousing space.</li></ul>Figures in Million Euro<br />
  139. 139. DB Schenker India Our Office Network<br />Jammu<br />Baddi<br />Chandigarh<br />Pantnagar<br />Moradabad<br />Kanpur<br />Jodhpur<br />Jaipur<br />Bhadohi<br />Patna<br />Delhi<br />Ranchi<br />Gandhidham<br />Guwahati<br />Indore<br />Country : India<br />Branches : 31Warehouses : 31<br />No. of Staff - India : Over 1000<br />Corp. Office Address : DLF Building No. – 8C 12th Floor, DLF Cyber City<br /> Phase II, Gurgaon 122002<br /> Haryana – India Tel : +91 124 4645000<br />Fax : +91 124 4645100 / 200<br />E-Mail : infoindia@schenker.com <br />Website : www.schenker-india.com <br />Haldia<br />Baroda<br />Nagpur<br />Raipur<br />Aurangabad<br />Nashik<br />Bhiwandi<br />Kolkata<br />Jamshedpur<br />Ahmedabad<br />Vizag<br />Bhubaneswar<br />Mumbai<br />Pune<br />Mysore<br />Hyderabad<br />Tirupur<br />Karur<br />Goa<br />Coimbatore<br />Bangalore<br />Tuticorin<br />Chennai<br />Pondicherry<br />Cochin<br />Corporate office<br />Regional office<br />Branch office<br />Warehouse<br />
  140. 140. DB Schenker Hotel logistics Service for hotel openings and hotel refurbishments<br /><ul><li>Pre-opening Service
  141. 141. Project management by dedicated project teams
  142. 142. Survey of hotel site
  143. 143. Set up of show rooms
  144. 144. Worldwide freight collection and consolidation
  145. 145. Organisation of transport via air/ocean freight and land transport
  146. 146. Im- and export customs clearance
  147. 147. Domestic delivery to individual site or to temporary storage location
  148. 148. Unpacking, installation
  149. 149. Recycling of packing material</li></li></ul><li>DB Schenker India Case Study – Hotel Logistics <br />Confirmation from suppliers<br />Pickup by Schenker<br />Hotel Site<br />Consolidation at the Origin<br />Port of Loading<br />Requirements <br />End to End Solution with Consolidation at the Origin and final delivery at the site.<br />Services Offered<br /><ul><li>Purchase Order Coordination
  150. 150. Pickup from Suppliers
  151. 151. Consolidation at Origin / Destination
  152. 152. Ocean /Air Freight
  153. 153. Delivery at Site </li></ul>Custom Clearance @ Origin<br />Deliveries <br />Ocean Freight<br />Port of unloading<br />
  154. 154. FF&E and OS&E is the soul and character of your property. <br />It's the heavenly bed, the sumptuous chandeliers, the exquisite fabrics and the finest furniture. <br />It’s the fine crystal, the bone china, the silver candelabras and the softest linen. <br />It's the best night's sleep, the perfect cocktail and that unforgettable meal. <br />Ultimately, it's your guests' very first impression and most indelible memory. <br />Thank you for considering <br />www.furnish-hospitality.com info@furnish-hospitality.com<br />

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