Complete Procurement Services LLC – Our Process
Complete Procurement Services, LLC offers many facets of services. We can work on a project in the early stages to consult with owners and the designers about manufacturers to look at specifying to get the best value, lead times and support. Many suppliers can quote a project, but have a hard time meeting a quality level or time frame that is required. The “after sale” aspect is also important as the GC may need to have a technical person be made available to help with questions or correct issues that may arise at the time of installation. This consulting can be a separate contract amount or if you award CPS the entire project up front I can incorporate it into the total package cost.
Secondly, if CPS is brought in to bid the product out to qualified suppliers, we work with the designers to offer them pricing on their specified supplier plus two alternate suppliers chosen by CPS to compete against. At this point we offer side by side pricing analysis to show the owners the variations in the pricing, lead times (if any) and our recommendation as to who to award the project to. If the budget is impacted too hard, CPS can work with the suppliers and the designers to value engineer a less expensive version of the designer’s vision. Owner gets the look and at a lower price. We also offer up products from select manufacturers that offer very competitive pricing and shorter lead times. This allows the owner the ability to not only meet their budget for FF&E but also get it in a quicker time-frame.
Project management is more than cutting a purchase order. CPS works to set up accounts with various suppliers on behalf of the owners to see if terms can be given. Standard policy is 50% deposit and net 30 on the balance, depending on the owner’s credit history. CPS then would release purchase orders to the suppliers and would start tracking the approval items (shop drawings, finish samples, cuttings etc.). This tracking is a most vital component as the manufacturers lead times are based on deposits received, and all of the required items are approved in order for them to place the order into a production schedule. This report would be generated on a weekly basis. At the onset of the project you will receive a bi-weekly project status report showing the various dates the suppliers have provided and/or updated on when they will be shipping the finished goods out. Toward the latter stages of the project the reports will come weekly.
Freight and logistics at approximately 8-10% are factored into the budget depending on the size and scope for the project. Hawaii and Alaska will be higher, around 20-25%. This cost is a separate line on the budget and will be calculated once the suppliers have been chosen as the rates can vary depending on where the supplier is shipping from and where the property is.
Warehousing: we also offer a warehousing component that works smoothly with the freight & logistics component as we place the warehouse under that contract so that deliveries to the warehouse, claims for damaged goods and the delivering of goods on a schedule to the property by the FF&E installer can work cohesively.
Project wrap up consist of an electronic submission of copies of the purchase orders, the last and final project status report and a consolidated report showing a total cost of the project through the billing process. Copies of the various warranties, cleaning and maintenance of the products from the manufacturers. These reports will allow the property to use in case of warranty work or replacements that may need to happen down the road.
In closing, I have 34 years of purchasing and project management with large hotel firms, Interstate and Hilton to name a couple. CPS takes no rebates or administration fees from the suppliers. The pricing on the invoices are the exact price the owner pays. I do not make any profit off of the goods. My pricing is not based on a percentage of the cost of goods. I would quote a hard number that covers the services you hire CPS to do. This way you know that when I can negotiate a price from the supplier it is because I am acting as an “agent for” the owner. Invoices are made out to the owners so you own all aspects of the goods for warranty purposes.
I have worked very closely with Architects, designers and with the general contractor and the FF&E installer, warehouse personnel and freight companies. Communication is key.