Mr. Hill

Furniture, Fixtures & Equipment

Strategies for Navigating Through FF&E

By Roger G. Hill , Chief Executive Officer & Chairman, The Gettys Group Inc.

The acronym FF&E hardly seems adequate to describe such an important part of hotel development. Furniture, fixtures, and equipment can make or break your guests' experiences - and your budget. Cost overruns and time delays are typical in the FF&E purchasing process, and mismanagement of procurement can even set back the opening of your hotel.

The procurement process is more than just numbers and phone calls. You are called upon to make countless decisions, from settling on an overall aesthetic with your designer to choosing a procurement agent to agreeing upon a budget and timeframe for installation. Resources are precious, time is money, and outcomes are critical. That's why it's essential to approach the FF&E process with a strategy to maximize your resources. It is possible to prevent or prepare for the common roadblocks in FF&E purchasing.

Never underestimate the importance of project management. An organized, efficient procurement consultant makes a world of difference in the purchasing process. You don't want to be surprised with unnecessary cost overruns and delays, and your procurement partner should plan for any and all contingencies. Frequent and detailed reporting - on the information you need to know - is essential, and you must demand transparency in the FF&E purchasing process. If there is a setback, you need to know what it is and how it will be resolved, so you can make adjustments as needed and be confident with the progress of your hotel development.

Choose vendors you trust. If you work with vendors with a good reputation and a track record of sticking to your established timeline and budget, you're much more likely to have a positive procurement experience. It's okay to use new vendors, especially as more green sources break into the industry, but make sure you do your homework. Contact friends and colleagues, check the message boards, ask your designers. Learn as much as you can about the company you're dealing with before signing a purchase order. Once you have a positive experience with a vendor, you can continue the relationship with your next project.

Even better, partner with a procurement company that has a library of established vendors. Gettys shares its vendor library across offices - and continents - and catalogues pre-qualified green vendors for projects with a goal of LEED-certification. Long-term supplier relationships bring you top-quality goods with preferred terms, production timelines, and delivery arrangements.

Let the economies of scale work for you. Whether you are a national chain or independent boutique hotel, you can stretch your FF&E dollars by leveraging the buying power of a procurement agent. Even if you won't be buying large quantities, a firm with hundreds of projects under its belt can use its industry footprint to get you the best price.

The entire process is extremely time sensitive, so don't make the mistake of waiting too long to begin selecting and purchasing. FF&E is not just about one element. From design all the way down to installation, FF&E is a process with many steps. It is critical to lock in your sources early. By establishing vendors early in the design process, you can avoid making last-minute decisions, paying rush fees, and learning that an item you want is out of stock. Starting the process early also ensures you don't face the biggest setback of all - delaying the opening of your hotel, because you don't have all the necessary FF&E.

It's impossible to control every element of the procurement process; there are too many variables at play. If you follow my approach to navigating the FF&E process, it's much less likely that your project will go off track and that much easier to roll past the hiccups. But you can - and must - limit the adverse effects of setbacks with due diligence.

I've seen it all. On one project we were involved in, a delivery truck filled with lampshades burst into flames! All the research and careful planning in the world couldn't have let us know that was coming. Yet, we were able to remedy the situation quickly. We worked with our approved vendors and locked in the pricing during the design process, so we got replacement lampshades delivered in plenty of time, and our clients didn't see a penny added to their bill. Our clients were happy, because we prepared for setbacks and had solutions at the ready.

Don't be afraid to try a nontraditional approach to procurement that lessens the burden on you. Gettys offers an alternative to the traditional "as agent" approach, Integrated SolutionsTM. Through Integrated SolutionsTM, clients work with Gettys as a single, centralized partner for manufacturing, logistics, and billing, rather than dozens of independent vendors. Our clients immediately see the benefits of integration as we reduce the total number of vendors they need to oversee. Fewer vendors to manage translates into less stress overall. An integrated approach also offers the fastest possible project turnaround, as the functions of design and procurement work in lock step. One project timeline for design and purchasing means the projects are in synch, and you receive delivery of FF&E at the appropriate moment, rather than too early or too late. The more streamlined your procurement process is, the earlier you can open your hotel.

Finally, have some fun with the entire process. Everything from starting early and developing a back-up plan for when things do not fall in line is essential, but do not forget to enjoy adding value and ambiance to your property. The elements and process in securing FF&E are critical to a hotel, but they also afford the opportunity to ramp up the style of your property. While necessary, your FF&E are more than necessities - don't lose sight of the excitement in picking them out.

You can use any of the purchasing strategies I've highlighted to eliminate unnecessary stress and mitigate against cost overruns. Too often projects are delayed by budget issues and construction challenges. A strategic approach to FF&E ensures that one less variable will delay the opening of your hotel and can mean thousands of dollars in revenue. Take the time before you sign on the dotted line to make sure you're getting the most out of your FF&E purchasing process.

Nearly 25 years ago, Roger Hill co-founded Gettys, a Top 10 hospitality interior design, procurement and development firm. Under his leadership, Gettys has grown to a global team of business-minded professionals who specialize in hotels, resorts, spas, casinos and mixed-used developments the world over. A respected industry veteran, he is frequently called upon by hospitality and business media outlets to provide insight into the redevelopment, renovation, and repositioning of hotels. A graduate of Cornell University, Roger has served as an appointed delegate for the White House Conference on Small Business, and is a member of ULI, YPO and ISHC. Mr. Hill can be contacted at 312-836-1111 or info@gettys.com Extended Bio...

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