The procurement process in the interior design industry involves acquiring the FF&E and OS&E items. FF&E materials, "Furniture, Fixtures, and Equipment," refers to movable items used in a building or space. OS&E is "Operating Supplies and Equipment" and relates to the consumables and other supplies needed to operate a facility or area. FF&E and OS&E are essential considerations in the design and construction of a building or space, as they can significantly impact the functionality and efficiency of the area. The procurement process of the FF&E and OS&E can be time-consuming and complex, particularly for large projects, if the process is not carefully managed. One way to streamline and manage the procurement process is to use a reverse auction method. In a reverse auction, the real estate developers post their FF&E and OS&E product specifications, clearly defining the project requirements and other relevant details. Suppliers then submit quotations to provide the required items based on the specifications that have been posted, and the real estate developers can choose the best offer based on price, delivery time, and quality.
Involving a 3rd party professional procurement company earlier in the design process allows the allocated budget to be monitored and controlled, identifying areas where costs may increase and allowing designers to consider value engineering solutions alongside the procurement company, thus keeping the project on track and within budget during the design stage.
Procurement companies specialising in the interior design industry can streamline the process between the real estate developers and the interior designer to handle any issues that may arise during the specifications process. This will ensure that both parties are satisfied with the progress and outcome of the project.
Overall, involving a procurement company in the early design stage of the project to clearly define the requirements, create a budget, and carefully vet potential suppliers to ensure that the right products are obtained at the best price is more efficient and essential for large or complex projects shows better outcomes with over 40% cost saving in sourcing and procurement procedure.