- Developers encouraged to go through procurement firms
- Procurement companies must be more transparent
Developers must overcome their reluctance to going through procurement firms, Bani Haddad, regional vice president of the UKs Wyndham Group told MEED on the sidelines of the Arabian Hotel Investment Conference (AHIC) in Dubai on 6 May, .
First time investors are usually hesitant to go through procurement firms as they see it as an additional cost, says Haddad.
That perception may start changing as hotel developers look to meet budget requirements in an efficient manner that doesnt compromise quality.
Procurement firms may find that developers in the region are beginning to understand the role such a service plays. In saying this, Haddad points out that procurement firms themselves have a role to play in ensuring transparency and a wide scope of sourcing solutions.
In February this year, Dubai-based procurement consultancy firm FEBC International became the first procurement company worldwide to obtain ISO certifications for its service. Also speaking on the sidelines of AHIC, Tarek Dajani, procurement manager at FEBC tells MEED that being ISO certified means developers are offered that sense of comfort.
It is vital that developers understand that the role of a procurement firm is to offer efficient solutions, rather than cut costs and over charge. Transparency plays a big role in this, and as such, we have found that ISO certification is a step in the right direction for all procurement firms who are faced with these perceptions.
Dajani goes on to explain that companies must offer a wide scope of sourcing solutions, something that can only be done if the firm has a real presence across a number of geographies.