The hotel furnishings, fixtures, and equipment (FF&E) and operating supplies and equipment (OS&E) procurement and purchasing industry is complex. This guide explains some standard terms and concepts to make things clearer.
What is Hotel FF&E?
FF&E is the acronym for furniture, fixtures, and equipment, which are everyday items necessary to operate hotels. Some people in the hospitality industry use FF&A instead, which stands for furniture, fixtures, and accessories.
FF&E is the common contractual term most people in the hotel sector use to refer to the movable, non-fixed furnishing and technology products specified for a design project. The Internal Revenue Service (IRS) also employs FF&E to define items that qualify for favorable tax treatment.
Looking at FF&E in another way, it is NOT built-in structural features such as walls, ceilings, doors, windows, etc. So, in summary, an FF&E budget covers items that go into a project that are not part of the building’s structure.
Architecture is the foundation of a hotel development or renovation project. FF&E are the items that bring the project to life and make it functional. It includes things like bed frames and mattresses, sofas, chairs, tables, gym equipment, headboards, lamps, curtains, spa furniture and equipment, office desks, artwork, televisions, and accessories. The category can be expanded to include specialist joinery, bedroom case goods, public area shop fit, and appliances.
What is Hotel OS&E?
Another common acronym in the hospitality sector is OS&E, which stands for operating supplies and equipment.
What’s the difference between FF&E and OS&E? Furniture, fixtures, and equipment are items guests or staff members interact with. Operating supplies and equipment are the pieces that they need to function within the space. Typically, OS&E are things that don’t need to be installed.
For hotels, OS&E includes things like towels, bed linens, dishes and glassware, irons, and hairdryers. It also includes items used by the staff, such as uniforms, office equipment, and cleaning supplies.
Purchasing and Procurement: The Difference
People often use the terms purchasing and procurement interchangeably. However, they are two distinct practices.
Purchasing is the final stage of ordering hotel FF&E and OS&E.
Procurement is much broader. It includes all the steps before and after purchasing, including:
- Product and supplier research
- Sourcing
- Negotiating prices and terms
- Managing supply chains
- Handling transport, delivery, and logistics
- Budgeting and billing
- Project management and installation.
hink of purchasing as a single-step process, much like clicking ‘Buy Now’ online. In comparison, procurement surrounds purchasing and is the process that identifies products and everything it takes to get them placed on site.
Purchasing and Sourcing: The Difference
Sourcing is central to hotel FF&E and OS&E procurement.
The act of purchasing is the final step in the first phase of the hospitality FF&E and OS&E procurement process. Sourcing must happen prior to it.
Here are the five steps of the sourcing experience.
- Research: Sourcing begins with product and supplier research based on specifications. Identifying attractive items that fit the aesthetic of a property and function effectively is critical. However, the hotel procurement experts at The Stroud Group take into account many other factors, including:
- Cost
- Sustainability and environmental friendliness
- Whether they meet industry standards and government requirements
- Durability
- Safety
- Ergonomics
- Functionality
- Lead times
- And more.
- Product development: Interior designers often specify unique products and designs that aren’t currently available. That’s where the team at Stroud Group undertakes a product development process with manufacturers, creating prototypes that will eventually get built.
- Testing: Before selecting items for purchase, it’s often necessary to coordinate third-party product testing for things such as sustainability, durability, flame retardancy, and other factors to ensure items meet project requirements and applicable standards and regulations.
- Budgeting: Every piece of FF&E and OS&E is evaluated to ensure it fits in the budget framework for the project. The team at The Stroud Group always negotiates to obtain the best pricing and value for clients.
- Scheduling: The sourcing process must also consider the lead time for manufacturing. It’s critical to plan around lead times to procure products that fit within the project schedule.
Hospitality Furnishing Terms: The Final Word
The hotel design industry is a complicated space, with a significant amount of terminology that can seem complex and confusing. Leverage the information in this guide to bring clarity to the hotel FF&E and OS&E procurement process, and contact the experts at The Stroud Group to get the support you deserve to navigate it.