FF&E: Overview, Procurement Process & Company Picks

FF&E

Owning a hotel is a wonderful idea. However, the excitement tends to fizzle out at the thought of FF&E procurement. Interestingly, with the right information, the procurement process of FF&E won’t be as difficult as it seems. However, so many people don’t even know what ff&e stands for. So, in this article, we’ll look at the definition of FF&E, what it stands for, and a list of hotel procurement companies you can choose from. 

FF&E Definition 

The definition of FF&E is any item in a building, which does not affect the structure of the building when you remove it. Examples are office equipment, lamp fixtures, air conditioners, office furniture, etc.  

Some items such as toilet seats, kitchen sinks, windows, and doors are however not FF&E. They are part of the building and therefore, will change the state of the building when removed. 

If you’re an owner of a commercial property, say a hotel, FF&E is important for accounting and tax purposes. The depreciation for Items included in FF&E is calculated differently from the property itself. Consequently, this can have an impact on the book value of the business or Enterprise. For example, the IRS considers computing equipment to have a useful lifespan of five years. The office building that houses the computers however depreciates according to a 39-year schedule. FF&E deductions can help boost your qualified business expense each year, lowering your income tax in turn. First, let’s know what FF&E stands for.

What FF&E Stands For? 

FF&E stands for fixtures, furniture, and equipment. 

They are assets contained in a commercial building but are not part of the building itself. FF&E items are called assets because they have tangible value. They are also useful for the everyday activities that take place in a commercial building. However, they are not permanently attached to the building, they can be removed. A common example is office furniture. 

FF&E Procurement 

FF&E Procurement is the sourcing, budgeting, purchasing, delivery and installation of FF&E items in hotels, residential, and other commercial buildings. It entails working with a procurement officer to identify and select the right products to meet the requirements of your market, your location, and your brand. Simply put, FF&E procurement is the selection and purchasing of FF&E items.  

Finding the right FF&E items for your hotel can be a herculean task. It is a specialist discipline; it requires significant furnishing industry experience, solid financial acumen, strong negotiation skills, with a global supply chain and logistics capability. Therefore, it is important to work with an experienced procurement officer who can serve as a guide in making your purchasing decisions. 

An experienced procurement officer or team will source, negotiate, purchase, and install all of your FF&E items, making sure to create cost saving opportunities for you. They also work with a network of suppliers and courier to ensure that your items are delivered and installed on time, and with little difficulty. 

Read Also: Supply Chain Management: What is SCM and Why is it Important?

FF&E Procurement Process 

This is the step-by-step process that procurement officers or companies follow when making FF&E item procurement decisions. The process of procurement of FF&E items involves a lot of activities such as budget planning, detailed research, market survey, etc. Generally, the FF&E procurement process involves the following steps: 

#1. Project Start up 

This involves meeting with the procurement team and other related parties to introduce the project, as well as the management team. Project kick-off meeting with all applicable parties to introduce the project management team.

#2. Budget Analysis 

Your procurement team will carry out a budget analysis. This involves taking into details all the costs involved in carrying out the procurement project.  

#3. Timeline Check 

Your team will source for, examine and negotiate with qualified vendors to ensure that the quality and price points meet the expectations of the client. 

#4. Creating a model house 

Your team will set up a model house to analyze specifications and ensure that the client as well as the management team is comfortable with the final products.  

#5. Purchase Management 

Your team will work with the chosen suppliers to manage and oversee the purchasing of all items required for your project. They will also provide regular project reports, The Project providing regular progress reporting, including tracking of submittals, samples, shop drawings, and other design-based documents. 

#6. Product Tracking, delivery and installation analysis

Your team will work with a chosen installation contractor, and provide the necessary information to help organize the delivery and installation of all FF&E items. They will also track products from the point that they leave the supplier until they reach their final destination. In the process of installation, progress reports will be made and submitted to the relevant parties on a regular basis. 

#7. Final Inspection 

After the installation is complete, your procurement team will consult a final inspection to ensure that all specifications were being adhered to. This will also ensure that the client’s needs were satisfied. 

With this process fully complete, you have a hotel that is tastefully furnished, and equipped to provide the best hospitality services you can think of! 

lets see a list of hotel FF&E procurement companies in the next section

Hotel FF&E Procurement Companies 

Below is a list of hotel FF&E procurement companies that you can choose from. Note that the listing is not in any particular order. 

#1. OCCA 

OCCA is a team of professional, goal driven and focused specialists in FF&E procurement. They leverage on decades of industry experience and a global sourcing network to deliver outstanding results for our client’s cap-ex projects & budgets, creating lifelong client relationships in turn. 

The OCCA Procurement team are established industry experts dedicated to delivering highly effective purchasing solutions for your hotel, residential, and workplace projects. With decades of experience in successfully sourcing, procuring, shipping, and installing FF&E products on projects worldwide, you can be sure that all your procurement needs will be met. Also, leveraging our international supply chain, we have the network and technology to maximize your capital investment. 

You can contact them via 

Telephone @ 0141 348 7670 

Email: hello@occa-design.com 

#2. Hotels Made Easy 

With a project management team staffed with professionals, and over 40 years of competence in management and installation services, Hotels made Easy can be a sure plug.  

Hotels made Easy offers Nationwide installation services, as they consolidate furniture, equipment, millwork, graphics etc. They’re capable of handling your project from start to finish, so you’ll have less worries about a third-party contractor walking away.  

With hotels made Easy, you have a team that can help you, as well as provide excellent customer service to handle any claims or complaints that might come up along the line. 

You can contact them via 

www.hotelsmadeeasy.com 

#3. Beyer Brown 

Beyer Brown & Associates is one of the leading hotel FF&E procurement firms, providing award-winning purchasing services for many years. Over the years, they have established a renowned reputation for providing value and cost saving services for project owners. 

Beyer Brown specializes in FF&E procurement for a variety of hotel property types and builds. From ground up new construction to ​historical renovations, ​your project will be handled with optimum efficiency. With FF&E purchasing services that extends across the hospitality industry to a wide range of brands and luxury levels, you can be sure of living out your dream hotel. The project managers have a high level of experience and training in different hotel types, and are aimed at giving you nothing but the best. 

With a well-detailed procurement process, Beyer Brown offers a client-focused experience that combines friendly and highly experienced staff with easy-to-use reporting systems. consequently, this leaves the client with peace of mind unmatched in the procurement industry today.  

You can make enquiries via info@beyerbrown.com  

Read Also:HOW TO ADDRESS A PACKAGE: Addressing an item for prompt delivery

Conclusion

As we already discussed, FF&E stands for Furniture, Fixtures, and Equipment. Now you may ask, “why do I require the services of a procurement company when I can source for FF&E items myself?”. Well, the truth is, procurement of FF&E items is not an easy venture. It involves a whole lot. You sure wouldn’t want to go through the rigors of checking out manufacturing companies and supply agents for each item you need. You’ll also need some purchasing advice. And then, what about the shipments, logistics, and installations? You wouldn’t want to go into all of that! That’s why you need the help of a procurement company.

Procurement companies comprise a management team that specializes in handling all logistics and processes required to source for, acquire and install all your FF&E items, helping you to achieve your goals while saving cost for you. Now, that’s a good try. We’ve introduced some of these companies to you, and we hope you get the satisfaction you’re looking for. Good luck!   

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