Can smaller casino hotels get the benefits that a larger corporation does when buying in bulk ?
By Carl Long
Gaming properties operate in an extremely competitive environment in which guest experience drives revenue and interior design plays a significant role in driving guest engagement . How can a casino or tribe deliver great FF & E ( furniture , fixtures and equipment ) design without breaking the bank ?
The largest companies in the gaming industry have tried to do this in-house and been unable to succeed . And small companies are often overwhelmed by the effort required in the attempt .
Smart casino companies turn to experts to leverage the buying power and expertise of a large-volume FF & E and OS & E ( operating supplies and equipment ) purchasing company , like Purchasing Management International and PMI-Tribal Services ( PMI ). Buying big in FF & E and OS & E purchasing for new construction and renovation of casinos depends on product knowledge , sourcing expertise , and diligent , dedicated project expediting .
FF & E and OS & E project purchasing require extensive product knowledge , both from a usability perspective and a value perspective . Qualified purchasing companies can help owners and designers source product in a way that enables designers to push their creativity to the edge while still considering the challenges of the gaming environment .
Engaging a qualified purchasing company early in the conceptual development of a project will provide guidance on where to allocate resources and how to truly value-engineer FF & E . Typically , value engineering on the FF & E portion occurs too late , and leaves owners with no choice but to cut the budget . By engaging in conceptual budgeting early on , the casino development team can deliver great design . It can value-engineer the guest experience where the most value in the FF & E portion of a project budget is guest-facing and guestengaging . Knowing how to do this requires an understanding of product costs , production sources , and time constraints . From there , projects large and small begin the process of getting the most out of their development dollars .
Once a conceptual budget has been established , a qualified purchasing company can begin sourcing product within the constraints set by the budget . A purchasing company with extensive experience in the gaming industry understands the durability required for FF & E in a casino environment .
Large-volume casino purchasing companies are well-informed in which products wear over time and which manufacturers provide the kind of durable , beautiful product required in the gaming environment . Large-volume purchasing companies have the resources to engage in global sourcing to find the best
Engaging a qualified purchasing company early in the conceptual development of a project will provide guidance on where to allocate resources and how to truly valueengineer FF & E .
products at the best prices , meeting both the design and performance requirements of high-design casino developments . To properly source those products , owners must direct their design teams to provide biddable specifications for all FF & E . This means even if a designer firm has a specified vendor as a baseline , it needs to be open to work with other qualified manufacturers .
Given the current volatility in the global manufacturing environment , having resources in multiple manufacturing locations reduces the global supply risk without compromising design or budget considerations . A large-volume purchasing agent will be able to provide an evaluation of multiple bids and insight into cost drivers , manufacturing location and capacity and available alternates across a wide spectrum of global project pricing information .
Once the product has been effectively sourced and ordered , getting the product to the project on time is another way a purchasing company delivers significant value to its clients . Buying big in this instance means the purchasing company has a method of purchasing management and expediting that leverages purchasing volume to move its projects to the front of the line . A purchasing company with established vendor relationships can move product extremely efficiently .
A purchasing company ’ s expediting procedures must include diligent follow-up with the vendors , the designers , and the owner ’ s project manager . Managing the time constraints of a casino project is unique because of the compounding nature of gaming revenue . A large-volume purchasing company has the staff resources and expediting training to work at a fast pace with accuracy and efficiency .
At PMI , there ’ s a team of people solely dedicated to project expediting . Project expeditors enable designers to be efficient , expose risks to project schedules and empower owners to make informed decisions about project milestones .
Owners with large and small casino projects recognize that project purchasing has unique requirements , and their project execution excellence can be amplified when they partner with a qualified large-volume FF & E and OS & E purchasing company that specializes in the gaming industry .
Carl Long is senior vice president of Purchasing Management International , the gaming industry ’ s leading FF & E and OS & E procurement company . He is also president of the International Society of Hospitality Purchasers and regularly speaks on topics related to global sourcing and procurement .
48 CASINO STYLE 2019