Purchasing in the design process

By Franklin Piñerúa (left), Chief Commercial Officer, Premier and Paul Morrell, Chief Operating Officer, Premier

Procurement is the process of sourcing and purchasing goods from vendors or third-party vendors. Purchasing a space includes preliminary conversations with clients regarding project budget, schedule, and operational requirements. At Premier, for example, the sourcing team works closely with the design team to determine specific project requirements and develop a set of specifications. From there, the purchase order issuance process begins.

With today’s supply chain issues, there is a greater need than ever for innovative logistics management solutions. That’s why it’s essential to partner with a sourcing team that offers established partners and strategic alliances. When a strong relationship is established, suppliers prioritize deliveries and offer better prices reflected in final costs. Our proximity to brands and global industry requirements allows us to provide unparalleled value engineering and cost avoidance efficiency. Executing the right to supply in hospitality requires careful management of the relationship between brands, suppliers and general contractors in concert to exceed the expectations of the property. Here are a few things to keep in mind:

Value engineering and cost avoidance
When it comes to value engineering, procurement teams must work hand-in-hand with internal design and architecture teams to strike the right balance between quality and cost for all levels of customers. Value engineering is an ongoing process, and a structured approach to its application on each project, such as post-project best practice reviews, allows us to incorporate brand-specific improvement opportunities.

On the other hand, discretely managed projects have a smaller initial budget scope, which, while attractive at the start of the project, belies the actual variance in completion costs due to unforeseen delays. Hotel brands are heavily involved in supplier selection, and the quality and experience of working with brands is paramount to dynamically adapting to supply chain shocks. Our procurement and project management teams work in tandem to deal with disruptions in real time, and we have networks of supplier relationships that allow us to creatively resolve issues.

Changing the procurement process and resolving procurement issues
Due to ongoing supply chain and manufacturing issues over the past two years, the procurement process has changed significantly. Today, the cycle now requires additional planning, negotiation and management. This will ensure sufficient oversight of every aspect of the supply chain process, from execution to manufacturing, shipping, customs clearance and delivery.

Supply issues are not solved by supply alone, but by problem solving and close working relationships with all stakeholders. Product delays may necessitate real-time re-specification of key requirements to meet ongoing critical milestones for construction and delivery. Our integrated service offering here is very beneficial, but it’s more important to cultivate and maintain relationships with vendors who have a proven track record of agility.

What products are customers looking for?
The pandemic has been a sea change for the hospitality industry, the ramifications of which are still being analyzed and understood. Remote working has spurred demand for more in-house equipment in residential properties. Landlords are open to adaptive reuse projects repurposing low occupancy office space. The leisure sector, or the combination of business and leisure travel made possible by technology and flexible working arrangements, has seen massive growth, meaning the industry is undergoing the biggest changes in decades. . The increase in this sector means there are more design requirements and non-standard products to deal with. The same visitor may need business equipment for the first half of their visit and then research leisure options for the second half. These changes are also a great opportunity for the industry, and for those who are the most agile in their adaptation to changing customer expectations.

However, the focus remains on including traditional FF&E products in hotels. These include the usual items you’ll always see in hotels like headboards, mirrors, chairs, rugs, artwork, light fixtures, and outdoor pool furniture. The ability to leverage a wide range of strategic FF&E and logistics suppliers is crucial here to ensure on-time delivery for our customers.

With 15 years of combined sales and operational management experience, Piñerúa manages Premier’s strong portfolio in Latin America and the Caribbean. He is responsible for expanding Premier’s presence in Latin America and the Caribbean in the hospitality industry by introducing customers to Premier’s one-stop suite of services. Prior to joining Premier, Piñerúa worked as Senior Director of Sales and Operations for Rubicon Oilfield International.

As an established COO with over 20 years of experience managing multi-disciplinary sales teams on a global scale, Morrell is integral to Premier’s growth as a leading customer-focused organization. serving industries including hospitality, multi-family housing and student housing. Morrell oversees overall corporate operations for Premier, develops and manages business plans, and ensures collaboration between the operations and business development teams. Morrell is also responsible for facilitating effective recruitment, onboarding, professional development and performance management.

This is a contribution to InspireDesign, written by an industry professional. The thoughts expressed are the point of view of the captioned individual.

Abdul J. Gaspar