HPGI MEA reveals high costs of poor procurement practice

by | Feb 25, 2019 | Suppliers

The procurement process sets in motion behaviors that are later echoed in hotel operation and maintenance

The pivotal importance of supply chain management within hotel operations is not always apparent. While service is a hotel’s key offering, it is essentially underscored by a seamlessly managed procurement and supply chain system. This can have an exponential impact on the guest experience at your hotel. “The procurement process sets in motion behaviors that are later echoed in hotel operation and maintenance,” says Darryl Rego, Managing Director of HPG International Middle East & Africa (HPGI MEA).

A well-executed project begins with a clearly defined project strategy. The HPGI MEA team has designed a Project Questionnaire Form (PQF) for this specific purpose. The completed information provides an overview of the operational direction of the project. The direct and long-reaching outcome is reflected in the preliminary budget and comprehensive BOQ they prepare. This facilitates efficient project costing. Owners and/or developers can now accurately assess all project needs. This also includes planning for contingencies and occupational wear-and-tear.

This is reflected in their sourcing strategies. “Our sourcing strategies emphasize on vendors that bring the best contract value for our clients as opposed to a mere low-priced bid,” says Darryl Rego. The HPGI MEA team has a stringent pre-qualification process for their global vendor database. This ensures long-term savings for their clients.

A key deliverable for any (and all) supply chain consultants is savings. At HPGI MEA, the supplier management strategies allow for double digit project savings without sacrificing on quality requirements and safety regulations. Therefore, it is becoming increasingly critical for hotel owners to bring supply chain consultants on board during the design and concept stage. The HPGI MEA quality assurance and control process begins during the tendering stage through production and extends until receiving procedures. This guarantees that the client makes informed decisions for their hotel properties.

HPGI MEA was recently awarded the ISO 9001: 2015, ISO 14001:2015 and ISO 45001: 2018, displaying their commitment to quality and excellence. Their project portfolio includes the iconic Queen Elizabeth II, The Edition Hotel & Apartments, Fairmont Fujairah Beach resort and more.

HPG International’s Middle East & Africa operations, based in Dubai, UAE is a subsidiary of Provision Advisory Services, LLC. More information on HPG International Middle East & Africa and other suppliers can be found on TOPHOTELSUPPLIER, the first complete directory about all leading hotel suppliers.

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― About the Supplier ―

HPG International (HPGI) is a global hospitality procurement services organization headquartered in the US with offices in Hong Kong (SAR), Tokyo (Japan), Lima (Peru) and Dubai (UAE).

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