Build Stronger FF&E Procurement Practices with Tech
As you walk through a conference center or a hotel lobby, the importance of FF&E (furniture, fixtures, and equipment) strategy might not be the first thing that comes to mind. But every touch—from the sofas and office furniture in the reception area to the window treatments in the lounge—is the result of applying a well-considered FF&E plan to create a comfortable, useful space.
The methods procurement and design teams use to create welcoming and functional spaces can make a big difference in the financial success of a property. Relying on strong processes and uniting them with the right technology is key to balancing guest satisfaction and financial efficiency.
Download the free tool: Hotel Budgeting Template
What is FF&E?
Furniture, fixtures, and equipment (FF&E) is a category of supplies that includes all movable furniture and fixtures not permanently attached to a building, as well as equipment used within a space. It contains items like desks, chairs, computers, electronic devices, and lighting units—essentially everything that makes a space functional, comfortable, and aesthetically pleasing.
FF&E lives at the intersection of day-to-day operations and interior design. As a focus of their design process, an FF&E designer considers every part of the building and how furniture, fixtures, and equipment can most effectively enhance a company's concept and appeal.
7 Industries that rely on FF&E for success
FF&E is a common procurement category across many industries, including the hospitality, education, healthcare, and corporate sectors. In hospitality, FF&E defines the guest and employee experience. Within healthcare and education, FF&E contributes to the functionality and comfort of a space so workers can create the best outcomes for the populations they serve.
Here are some common examples of settings in which companies can use an FF&E strategy to improve experiences and operations:
1. Hospitality
Hotels and resorts require a wide range of FF&E to furnish guest rooms, lobbies, dining areas, and conference rooms. The administrative side of operations also needs furnishings and office supplies to keep the business running.
2. Healthcare
Hospitals and clinics must have medical equipment, patient beds, waiting room furniture, and office fixtures to facilitate operations, support patients, and make visitors feel welcome.
3. Corporate offices
Businesses need office desks, ergonomic chairs, conference tables, and electronic equipment like computers and printers to ensure employees can comfortably perform their roles.
4. Retail locations
Stores use display cases, shelving units, checkout counters, and storage fixtures to showcase products and welcome shoppers.
5. Restaurants
Dining establishments need kitchen equipment, tables, chairs, bar stools, and decorative items to create an inviting atmosphere and efficiently serve guests.
6. Commercial real estate
Commercial properties must equip spaces with lighting fixtures, security systems, HVAC units, furnishings, and consumable supplies for tenant use.
7. Entertainment venues
Theaters, concert halls, and sports arenas require seating solutions, stage equipment, lighting rigs, and decor to create the right atmosphere for events.
Hotel Budgeting Template
Growing a hotel business calls for strong process, cost savings, and commitment to guest satisfaction. Download this hotel budgeting template to achieve all three.
How FF&E adds value to your business
A company’s FF&E approach blends form and functionality to create the best employee and guest experiences. While furniture and fixtures contribute to a space's appearance and comfort, improving these aspects isn't the only benefit of strengthening FF&E procurement practices. A strong FF&E strategy also creates better operational and financial conditions.
Enhances operational efficiency: FF&E (sometimes referred to as FF&A for furniture, fixtures, and accessories) can improve the efficiency of operations within a business. For instance, tap-activated door locks make it easier for guests and staff to enter rooms, raising the experience and perceived quality of the property. Hands-free faucets can help cooks, servers, and the kitchen itself stay clean to keep food production safe.
Improves aesthetics: A visually appealing environment created through a thoughtful selection of FF&E can elevate a space, making the property feel more luxurious and welcoming to guests. The effects of higher-quality furnishings also extend to employees. Working in a well-appointed, functional space may improve employees' experience and sense of pride.
Attracts and retains customers: In industries like hospitality, the quality and style of FF&E directly impact customer satisfaction and loyalty. Comfortable beds, well-equipped bathrooms, and stylish lounges help hotels stand out. Well-selected FF&E leaves guests with a positive impression that makes it more likely they’ll return to the property for future stays.
Want to see procurement technology in action? Learn how Lark Hotels uses Order.co to power its FF&E procurement and create elevated experiences.
Supports brand identity: Furnishings play a role in establishing value and improving customer perception. Decor, equipment, and furniture reflect a company's brand image and values. Aligning these aspects helps reinforce brand identity for employees and visitors.
Increases property value: For businesses that own their premises, high-quality FF&E not only serves immediate operational needs but also contributes to the property’s overall value. Well-appointed spaces are easier to rent or sell and may carry a higher market value than those that are more hastily designed.
Unlocks tax benefits: The Internal Revenue Service (IRS) provides a number of tax deductions for the depreciation of FF&E, providing financial incentives beyond the operational advantages. Depreciation of corporate assets (not just FF&E) is prominently featured in a business's balance sheet.
What is FF&E depreciation?
FF&E depreciation is the decrease in the valuation of a company’s furniture, fixtures, and equipment holdings over time. Depreciation happens due to wear and tear or obsolescence. Factoring in depreciation allows businesses to spread out the cost of these tangible assets over their useful lifespan, providing a more accurate reflection of their value on financial statements.
Tax law allows companies to deduct the declining value of their FF&E each year for tax purposes. Understanding FF&E depreciation helps businesses plan for future investments by recognizing when items are nearing the end of their useful life. This strategic financial planning tool not only aids in budget management but also maximizes cash flow.
How is FF&E procurement different from general purchasing?
Buying durable goods for a space differs greatly from procuring supplies for daily operations. Unlike routine supplies, FF&E purchases are capital investments that call for careful consideration of quality, design, and long-term impact on the space and the budget. The complexity of FF&E procurement influences budgeting and planning for big-picture projects.
Customization and specificity
FF&E procurement often requires more customization and specificity than standard procurement processes. This is because the items need to align closely with the brand's identity and the functional requirements of the space.
Lead times
Given the customization and potentially intricate manufacturing processes involved in FF&E procurement, lead times can be significantly longer than those for standard hospitality procurement. Standard procurement items are usually more readily available or have shorter production times.
Specialized vendors
The market for FF&E involves specialized vendors that might not be part of a company's usual supplier network. This necessitates building new vendor relationships and vetting suppliers with specific furniture, fixtures, and equipment expertise.
Lifecycle management
Managing the lifecycle of FF&E requires considering aesthetics, wear and tear, and obsolescence differently than with standard procurement items. FF&E procurement demands a greater focus on durability, maintenance needs, and eventual disposal or replacement strategies.
Budgeting
Depending on how items are classified for depreciation purposes, budgeting for FF&E can be more complex due to its blend of capital expenditure (CapEx) and operational expenditure (OpEx). This impacts financial planning differently than typical procurement expenses.
Regulatory compliance
Certain types of FF&E must meet specific regulatory standards related to safety, accessibility, or environmental impact that may not apply to standard procurement categories. In industries such as healthcare and education, supplies and procurement processes may need to follow state or federal requirements.
Common FF&E procurement challenges and how to solve them
The complexity of FF&E procurement makes planning and process important components of success. Teams leading FF&E projects may run into the following challenges when bringing new properties or space refreshes to life:
Budget: Budget challenges in large-scale, multi-stage FF&E projects often stem from fluctuating costs and unforeseen expenses or delays. To mitigate these issues, procurement teams must maintain a flexible and detailed budget that can adapt to change. Incorporating a contingency fund and regularly revising budget forecasts based on actual expenditures can help businesses manage financial risks.
Supplier reliability: For FF&E teams, finding suppliers that deliver high-quality products on time and within budget is essential. Research and vet vendors carefully to ensure they can meet contract specifications and deliver within a reasonable timeframe.
Sustainability and durability: With increasing emphasis on environmental sustainability, sourcing eco-friendly FF&E options can be a challenge worth overcoming. Prioritize suppliers with sustainable practices, and focus on getting good-quality products that provide adequate long-term value for the investment.
Logistical hurdles: As the world recovers from pandemic-related supply chain constraints, delivery and installation of large or complex items may require additional time and planning. Clear communication with logistics partners and detailed project management can help avoid logistical pitfalls.
Technological integration: As workplaces become more technologically advanced, integrating new FF&E enhancements with existing systems without disrupting operations demands thorough research before integration. Unlike basic supplies procurement, some purchases (especially technological enhancements) may require you to collaborate with IT, security, and legal teams for approval.
In addition to operations integration, it’s important to unite purchasing data within the tech stack. A procurement platform creates a single source of truth for procurement management and financial planning.
Hotel Budgeting Template
Growing a hotel business calls for strong process, cost savings, and commitment to guest satisfaction. Download this hotel budgeting template to achieve all three.
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Using technology to power FF&E procurement and planning
Procurement platforms streamline the FF&E procurement process by offering a centralized solution to source, compare, and purchase furniture, fixtures, and equipment. Moving to a platform removes complexity and reduces labor-intensive, error-prone manual processes. It also opens opportunities for cost savings, spend analysis, vendor management, and better hotel budgeting.
Companies that seek out a procurement solution for their FF&E needs enjoy many benefits beyond simplicity, including:
- Cost reduction: Automating procurement of FF&E items reduces administrative and operational costs by eliminating manual processes, preventing costly errors, and ensuring competitive pricing through comprehensive supplier comparisons.
- Time savings: Streamlining the procurement process with technology accelerates decision-making and transaction completion, saving businesses valuable time they can redirect toward core activities and strategic planning.
- Stockout protection: A centralized platform offers access to an extensive network of vetted suppliers, providing businesses with additional options and the ability to source high-quality products at the best prices. It also provides backup protection for mission-critical items.
- Scalability: As businesses grow and their needs change, an automated FF&E procurement platform can easily adjust to handle increased volume or demand for different types of products—without requiring additional resources or significant operational changes.
- Data visibility: With advanced analytics capabilities, companies can use an FF&E procurement platform to gain valuable insights into spending patterns, supplier performance, and market trends. Increased visibility enables informed decisions that support strategic objectives and operational improvements.
Streamline purchasing FF&E products with Order.co
Order.co simplifies procurement for hospitality businesses, making it easier and more cost-effective to source everything from paper products to large-scale furniture and equipment. With a centralized procurement solution, you can take advantage of the following powerful features to manage every purchase, large or small:
- Vendor-agnostic purchasing that allows you to buy from any supplier, including offline and phone-only vendors
- Curated catalogs to guide purchasing for every need, unifying the buying process and providing continuity across every location
- Budgeting and reporting tools that create total visibility for better procurement and financial planning
To learn more about FF&E procurement with Order.co, schedule a demo today.
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