Service
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What We Do
We offer Procurement Agent (PA) services, overseeing the procurement of over ten thousand items for hotel opening projects and other hospitality spaces. Our role includes cost and schedule management on behalf of clients, ensuring high-quality outcomes. As intermediaries, we consult and communicate with project stakeholders.
Why Do You Need a Procurement Agent?
In the global hospitality industry, it is common practice to enlist the services of a Procurement Agent firm for the expert selection and procurement of interior furnishings and equipment for newly opening hotels and other hospitality spaces.
The Procurement Agent plays a crucial role in acquiring thousands of items and negotiating between stakeholders, particularly at world-renowned brand hotels. While the number of Procurement Agent firms in Japan is still limited, the recognition of their value is increasing as the industry becomes more globalized.
What Is the Benefit of Hiring a Procurement Agent?
Procurement Agents establish Service Agreements with real estate developers, hotel ownership, and others. Safeguarding the brand, we collaborate with hotel operators and interior designers on behalf of our clients, overseeing and managing the project. Our responsibility extends to placing orders with suppliers and streamlining the management of every item. The unified reporting structure simplifies complex business flows, enabling clients to focus on the essential aspects of their business.
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We are dedicated to maximizing overall project value without favoring any specific aspect. By balancing these four elements, we steer the project toward success from both design and business perspectives.
- Efficient schedule management
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A hotel project is a complex construction endeavor, with progress status changing daily. Managing and finalizing designs and the formation process can be demanding. By unifying various elements, we minimize the risk of rework and reduce unnecessary spending.
- Establish and manage appropriate budget
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We set the appropriate budget at the project’s outset. Centralizing cost management allows us to handle daily budget adjustments due to design changes and manage cost increases stemming from various factors.
- Set and ensure quality
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We don’t leave quality management to the supplier. Leveraging our understanding of diverse procurement items, we act on behalf of our clients, ensuring the protection of their budget by inspecting the quality of each item at the time of shipment and delivery.
- Reduce client’s workload
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The three central management processes above showcase the maximum impact of engaging a Procurement Agent (PA). Outsourcing procurement enables our clients to focus on their core businesses.
What We Handle
FF&E (Furniture Furnishing and Equipment)
Hotel projects involve a diverse range of FF&E. The entire project is highly intricate, encompassing numerous items, each with its own process, originating from different sources and delivered on various days. Our approach begins with attentively studying design documents to comprehend the project. Subsequently, we carefully manage the schedule and cost by overseeing every phase, from estimation and production to delivery.
- Furniture
- Decorative lighting
- Carpets/rugs
- Window treatment
- Signage
- Artwork and artifacts
- Styling accessories
OS&E (Operation Supply and Equipment)
We carefully select and propose every item, from room essentials like glassware and tissue boxes to housekeeping cleaning equipment. For luxury hotels, we collaborate with several dozen suppliers, each room requiring selection and procurement of over 100 items. We create a master list for all items and oversee future repairs and additional orders.
- Minor electrical appliances
- Beds and mattresses
- Linens
- Bedding
- Guestroom equipment
- Tableware
- Carts and wagons
- Public equipment
- Kitchen utensils/equipment
- Uniforms
- Back-of-house furniture/equipment
- Banquet items
- Engineering tools
- Cleaning utensils/equipment
- Planters
- Fire and rescue prevention equipment
- Fitness machines/equipment
Project Flow
The PA workflow is organized into six main phases. During each phase, we handle budget preparation, coordination, schedule management, and meetings with each stakeholder as needed.
*This is a general workflow, illustrated using a typical luxury brand hotel opening project as an example. We will tailor our approach to match the scale and characteristics of each project upon an actual request.
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Project visualization
At the project’s onset, our initial step is to estimate a preliminary budget for FF&E and OS&E based on the facility configuration, scale, and hotel grade. This crucial first stage involves determining the required items and quantities for the hotel.
- Crosslink will assist you in this process
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After understanding the facility’s composition and the targeted grade, Crosslink can provide a rough estimate using historical performance data and other relevant information. Our prompt and adaptable response lays a crucial foundation in the initial project phases. We collaborate closely with clients to review the budget as the design progresses.
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Support for mock-up room production
Based on the agreed-upon contents in Phase 1, we will build one to two mock-up rooms of actual size over about one year to enhance the certainty of the room’s contents. This is a valuable opportunity to verify usability not only from the standpoint of the client, hotel operator, designer, and constructor but also from the standpoint of the end-user guests.
- Crosslink will assist you in this process
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We simultaneously develop FF&E estimates and alternative proposals aligned with the designer’s specifications and OS&E proposals from Crosslink’s distinct perspective. Stakeholder feedback on FF&E and OS&E may involve numerous items, occasionally with conflicting requests. Acting as intermediaries, we strive to strike the right balance between budget and quality, prioritizing the optimization of the entire project.
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From bidding to placing orders for FF&E suppliers
In this phase, we request each supplier to provide quotations for each FF&E item based on the specific item-by-item specifications agreed upon in the mock-up room in the previous phase. We meticulously proceed with scheduling until the specifications are finalized and the order is placed.
- Crosslink will assist you in this process
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It’s not uncommon for suppliers’ estimates to surpass the budget. Therefore, Crosslink will provide value engineering (VE) proposals when necessary. Conversely, if a client highlights a crucial project value that needs to be maintained, we will respect this input and adjust the budget accordingly.
What is Value Engineering (VE)?
Value Engineering is a method and organizational effort aimed at enhancing the value of a product or service. This is achieved by reviewing its cost and function to improve both aspects.
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FF&E production management and OS&E procurement
This signifies the actual production phase of FF&E, where everything accumulated from Phases 1 to 3 takes form. The client, hotel operator, and designers collaboratively review and coordinate the drawings and samples of hundreds of items from their respective perspectives.
A comprehensive list of OS&E equipment is compiled based on the facility configuration, and OS&E procurement shifts into high gear upon the arrival of the general manager and heads of each section at the hotel. As each item has a distinct delivery date, we prioritize the order in which items are finalized. We manage the process of approaching the operator, obtaining quotations, placing orders, and delivering the items while overseeing the budget.
- Crosslink will assist you in this process
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The PA acts as an intermediary, ensuring the design aligns with desires, justifies costs, and facilitates maintenance. Crosslink documents the adjustments and supplier communication details.
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Installation of FF&E and finalization of OS&E selection
A delivery plan is devised for the FF&E developed in the previous phase, providing instructions to each contractor on the method and sequence of site deliveries. This represents the concluding phase of the OS&E proposal, where we identify and address any omissions or defects in diverse construction projects. We also oversee the ordering and management of the extensive array of items.
- Crosslink will assist you in this process
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Since numerous FF&E items need coordination with construction work, errors often emerge on-site for the first time. If necessary, Crosslink will provide evidence of communications from previous phases and address discrepancies through repeated negotiations.
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Creation of a master list and handover
Following the hotel’s opening, Crosslink will compile a master list encompassing FF&E and OS&E, for which it was responsible, handing it over to the client. This master list serves as a follow-up, detailing the ordered items, quantities, and contacts for repeat orders and breakdowns, ensuring seamless operations. Delivery of the master list is scheduled approximately three months post-hotel opening, marking the completion of our PA services.