Introduction- What is PIP?
A Property Improvement Plan (PIP) is a document issued by a hotel franchisor that outlines necessary refurbishments to ensure that a property meets brand standards. Typically, a PIP is initiated after a quality team from the brand reviews the property and identifies areas that need improvement. Once the franchisor issues a PIP, compliance is mandatory to maintain your franchise affiliation, with a completion deadline usually set between 12 to 24 months.
A PIP may include:
- FF&E (furniture, fixture and equipment) updates
- Upgrading OS&E (operating supplies and equipment)
- Cleaning or refinishing
- Revising operating procedures
Periodic refreshes and property improvement plans (PIPs) are essential for all hospitality properties. While some owners may initially be wary of the financial implications, PIPs provide a critical opportunity to reassess and plan for the future profitability of the hotel or resort.
The primary goal of property improvements is to enhance guest satisfaction and boost the property's competitiveness. These upgrades are designed to increase market share, drive occupancy and rates, and lower fixed expenses. Ultimately, the aim is to improve operating profits and increase asset value, creating a win-win-win situation for guests, owners, and brands.
Read more: Enhance Hotel Excellence: The Crucial Role of OS&E Lifecycle in Hospitality
The best way to do PIP fulfillment
Traditionally, PIP fulfillment has heavily relied on Excel spreadsheets, which can lead to a disorganized and cumbersome process. Information about a hotel's FF&E (Furniture, Fixtures, and Equipment) and OS&E (Operating Supplies and Equipment) is often stored in outdated spreadsheets, sometimes as old as seven years, which may not align with current specifications.
Optimizing Operations: Exploring Successful OS&E Management Elements
Enter Fohlio: a hospitality procurement software that stores FF&E and OS&E data, providing a comprehensive repository of information from past projects. This system offers numerous benefits:
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Access to Historical FF&E OS&E Product Information:
If a PIP requires you to respecify an old product, you can easily retrieve complete details, including supplier information, pricing, and order volumes.
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Access to Alternative FF&E and OS&E Brand-Fit Options:
Quickly find alternative products that meet your brand standards if the original options are not cost-effective.
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Evaluate Lead Times:
Add lead time information to your products to understand how they impact procurement timelines, allowing for better planning and scheduling.
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Reuse for Future Projects:
Leverage the database for all future projects, streamlining the specification and procurement process.
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Monitor Lifecycle Information:
Track the performance and longevity of each product, including defect rates and replacements, to assess whether they continue to meet your standards.
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Estimate PIP Costs for Hotels:
Streamline the process of budgeting for PIPs by leveraging existing historical pricing data for each product. By aggregating the prices of all items, you can generate a realistic budget for future PIPs, ensuring accurate financial planning and resource allocation.
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Identify Reliable Suppliers for Future Collaboration:
After pinpointing products with a proven track record of performance and longevity, you can easily identify the suppliers responsible for providing those materials. This allows you to establish valuable relationships with trusted suppliers for future collaborations, ensuring consistent quality and reliability in your procurement process.
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Access Historical FF&E and OS&E Pricing Data:
Gain insights into past purchasing patterns by accessing historical pricing data for materials you've previously procured. Understand the previous costs and quantities ordered, empowering you to negotiate more effectively in future transactions and optimize your procurement strategy.
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Identify Discontinued Items
Accessing a comprehensive product and materials library, which includes details on both current and discontinued items, revolutionizes the process PIP fulfillment. It simplifies the search for products that align with project standards while preventing the selection of outdated or unavailable materials. With this capability, specification writing becomes more efficient and precise, ultimately saving time and mitigating the risk of errors.
With Fohlio, the PIP fulfillment process becomes more efficient, organized, and aligned with current standards.
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