The gaming industry delivers excitement and entertainment on a grand scale. But the development of new venues and amenities can expose gaming companies to great risk if the Funiture, Fixtures and Equipment (FF&E) project is not well-executed, delivered on time and under budget. Each FF&E project requires real purchasing power for proper project execution.

FF&E project procurement is more than just buying and issuing purchase orders. It’s the choreographed execution of thousands of transactions from sources around the world within a limited time and budget to fulfill the unique vision of a gaming facility. The success or failure of an FF&E project is in the management of the details. There are few disciplines that require greater attention to planning and detail than FF&E project procurement.

Navigating project constraints of budget and time requires specific skills, great attention to detail, creative problem-solving and deep product knowledge. That’s project purchasing management, which is essential for the successful execution of an FF&E project.

In the gaming industry, it’s not always necessary or advisable for owners to maintain a staff of project purchasing agents. Project procurement expertise is available from large-volume, qualified third-party companies that give owners the purchasing power they may not have in-house.

In the planning of a new construction project or renovation, gaming companies should exercise their purchasing power early in the project development process. This means utilizing conceptual budgeting expertise, production lead-time knowledge and worldwide sourcing skills, bringing trained expediting and project purchasing experts into the pre-planning phase with the entire project team.

Line-item conceptual budgeting early in a project increases the efficiency of the designers’ efforts by giving them specific pricing targets. A conceptual budget includes quantities and unit prices based on a quality level for FF&E in rooms, corridors and public areas, even though final designs are not complete. Conceptual budgeting also helps define what is included in FF&E and who is responsible for buying and installing each item.

Any qualified procurement agent should be able to provide this type of budget, including estimates for freight, warehousing, installation, overages, attic stock and sales taxes. Finally, a detailed conceptual budget gives owners a more precise target number for lenders and capital approvals.

Purchasing power also means project execution through expediting. Expediting is likely the most important ingredient on an FF&E project. Project expeditors track and obtain design approvals and monitor every piece of FF&E from the factory to its final location. When the FF&E starts to move, it’s a make-or-break moment that can keep the contractor on its critical path and keep the project moving effectively toward a successful completion. Without a robust system of checks and balances, project expediting becomes little more than shuffling paper. Trained project purchasing expeditors contribute to the purchasing power of the project team.

Gaming companies can leverage the inherent large purchasing volume of their projects and the volume from their third-party procurement agent to enhance the overall purchasing power for their projects. Make sure to take advantage of conceptual budgeting, preplanning scheduling, worldwide sourcing, project management and expediting to get the most purchasing power for your projects.