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Tag: Operating Supplies and Equipment

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Operating Supplies and Equipment: The Backbone of a Successful Hotel Operation

Hotel OS&E stands for Operating Supplies and Equipment, which refers to the tangible goods that are required to operate a hotel. These items include everything from bed linens and towels to furniture, kitchen appliances, cleaning supplies, and technology equipment. OS&E items are essential for a hotel to provide guests with a comfortable and convenient experience.

Some examples of hotel OS&E items include:

  • Bedding, linens, and pillows
  • Towels, bathrobes, and slippers
  • Room amenities like toiletries and coffee makers
  • Furniture such as chairs, tables, and sofas
  • Lighting fixtures and lamps
  • Kitchen equipment like refrigerators, ovens, and microwaves
  • Cleaning supplies and equipment
  • Technology items like televisions, phones, and Wi-Fi routers.

Proper management of OS&E is crucial for a hotel’s success, as it ensures that the property is well-maintained and provides guests with a high level of comfort and convenience.

The importance of OS&E in a hotel operation can be explained in the following ways:

hotel guest comfort

Guest Comfort: The most important factor for any hotel is the comfort of its guests. OS&E items such as bed linens, pillows, towels, and room amenities provide guests with a comfortable and enjoyable stay. They create a homely atmosphere and enhance the guest’s overall experience.

operational efficiency

Operational Efficiency: OS&E items such as cleaning supplies, kitchen equipment, and technology equipment are essential for the efficient operation of a hotel. They enable staff to maintain the property, provide services to guests, and ensure that everything runs smoothly.

hotel brand image

Brand Image: OS&E items are a crucial component of a hotel’s brand image. The quality of the OS&E items reflects the hotel’s standards and values. High-quality OS&E items can create a positive impression on guests and enhance the hotel’s reputation.

cost savings

Cost Savings: Proper management of OS&E items can result in cost savings for the hotel. For example, investing in high-quality OS&E items may cost more initially, but they will last longer and require less frequent replacement, resulting in long-term cost savings.

hotel compliance

Compliance: Some OS&E items, such as fire safety equipment, are required by law for the safety of guests and staff. Proper management of OS&E items ensures that the hotel is compliant with legal requirements and avoids potential penalties and lawsuits.

In summary, Operating Supplies and Equipment are an essential part of a hotel’s operation. They play a critical role in guest comfort, operational efficiency, brand image, cost savings, and compliance. Therefore, proper management of OS&E is crucial for the success of a hotel operation.

Even better? Source1 partners with a trusted network of suppliers to bring you aggressive OS&E contracts, specialty luxury agreements, and the best pricing on top quality products and services. We find you reduced pricing on OS&E items you’re already purchasing, customized supplier programs and ensure delivery of products that meet your specifications.

Interested in reducing your operational costs and improving your OS&E purchasing? Become a Source1 member today!

Blog PostsUncategorized

How Hotels Can Save on Operating Supplies and Equipment (OS&E)

Hotel Operating Supplies and Equipment (OS&E) refers to the day-to-day products that both staff and hotel guests use. It represents a large range of items that hotels require to operate, much of which is consumable, and therefore requires monthly or bimonthly reordering.

Products that Fall Into the OS&E Category

operating supplies and equipment

All hotels require the following OS&E:

  • Disposables: gloves, trash liners, tissue, and toilet paper.
  • Cleaning Supplies: brooms, mops, dustpans, wiping cloths, dusters, and chemicals.
  • Maintenance & Repair Operations: light bulbs, batteries, paint, and equipment repair parts.
  • Guestroom Amenities: soaps, shampoos, sheets, towels, hairdryers, irons, and hangers.
  • Staff Supplies: Uniforms.

Full-Service Hotels—those with restaurants and bars—require additional OS&E such as pots, pans, spatulas, squeeze bottles, food containers, cutting boards, dinnerware, flatware, glassware, and shakers.

Needless to say, the extensive amount of various operating supplies and equipment required for the many different departments in a hotel can, if not controlled, play havoc with one’s budget.

os&e procurement

The first step in hotel OS&E procurement entails an assessment and selection of products as well as their specifications and suggested par levels. Once established, pricing and delivery are considered, and a controlled budget is created.

cost control for os&e

Hotels often purchase these items through a distributor or directly from the vendor. Vendors of OS&E are competing with an ever-increasing number of suppliers, making the field extremely competitive. The fine line is finding reduced pricing that also aligns with timely delivery and products that meet your specifications. Freight and shipping also need to be considered when conducting price comparisons.

Although startups may offer reduced pricing in an attempt to get your business, stability plays a key role in a secure supply chain. Established suppliers have a long-term track record and have survived past economic downturns. It’s important to remember that inventory shortages, in any number of departments, can significantly affect and have an impact on the quality of customer care.

In our current environment, with COVID-19 still creating supply chain issues, it’s best to have two weeks’ worth of operational supplies and equipment on-hand. Of course, this leads us to yet another almost universal inventory and supply issue—the space to house the OS&E and the ability to organize it in such a way that makes it easily accessible for both restocking and inventory analysis.

Most large chains have whole procurement teams and order hotel OS&E in amounts that allow for consistent savings and supplies. These teams vet and work with dozens of suppliers, taking advantage of both contracts and rebates. Unfortunately, smaller companies do not always have the resources to create this type of in-depth procurement system.

How can small and mid-sized hotel brands compete with the larger brands? The answer to that question lies in the ability to find the vendors that offer the best service and product at the lowest price. Enter the world of GPOs.

group purchasing organizations

Consider the power of one to the power of hundreds, if not thousands. In a GPO, the power lies in the number of hotels and restaurants that have joined the organization. By making high-volume purchases, GPOs are able to obtain pricing similar to large corporations.

The trick is finding the right GPO, the one that works with the suppliers that carry the products you need. If you choose well, the task of procurement will be reduced from sourcing dozens of suppliers to just one. In much the same way you conduct your search for the appropriate suppliers, consider the same important elements when choosing a GPO. What is their track record? Are they reliable? What can they offer in terms of pricing and delivery?

source1 purchasing

Source1 offers a “one-stop shop” experience so that you can access suppliers that’ll get you better pricing on items you already purchase for your operation. What began with a promise of substantial cost savings from our buying group model has evolved into a solid bond of trust with our network of suppliers such as: HD Supply, Georgia Pacific, Ed Don, Home Depot, Batteries Plus Bulbs, Welspun, Cintas, Aramark and Chef Works.

Source1 was established in 1997. In 2018, they joined forces with other Group Purchasing Organizations to form the Buyers Edge Platform, raising their purchasing power to $12 billion and becoming the leading GPO in hospitality. They have contractual relationships with more than 165,000 rebated line items and over 1,000 suppliers. Source1 Purchasing partners with some of the most recognizable and established suppliers and distributors including American Hotel Register Company, Grainger, Office Depot, and Sherwin-Williams, to name just a few.

And just as important as the cost and time savings, is the partnership that develops. Source1 Purchasing offers you direct access to account and procurement managers that are dedicated to increasing your profitability as well as purchasing analytics that result in real-time, data-driven business decisions leading to measurable results.

A good GPO becomes a partner in your business and is dedicated to decreasing your costs while increasing your value. Contact us today to learn more about our services.