Just-in-Time Delivery vs. Warehousing: Which is Better for FF&E?

Posted by Chris Parker on Sep 19, 2017 11:49:00 AM

Choosing Between JIT and Traditional Warehousing for FF&E

Picture this. Your property is nearly complete and ready for guests to enjoy. The framework has been built to perfection and the construction dust has settled. The finish line is in sight, and all that’s holding you back from crossing it is delivery and installation.

That’s when you get the call. The truck full of case goods arrived right after the linen truck, and has nowhere to park. Your FF&E products are delayed at least another day. If only you knew the schedule in advance, you might’ve been able to avoid this inconvenience.

When it comes to FF&E projects, it’s important to plan ahead. Not having a logistics plan in place early can majorly impact your budget and your timeline.

Whether you’re in the early stages of a new construction project or are gearing up to begin your Property Improvement Plan, you will want to consider FF&E delivery sooner rather than later.

First, let’s define your delivery choices:

  • Just-in-Time (JIT) is an inventory strategy designed to reduce product handling and increase receiving and installation efficiency.
  • Warehousing is a system that enables hoteliers to store product until a property is ready for FF&E installation.

The question remains: Which option is better for your next hotel project?

Choosing Between JIT and Traditional Warehousing

In general, JIT is an ideal choice for hoteliers seeking a quick product delivery, but there are instances in which warehousing will be a necessary option. Your logistics team will need to take a number of factors into consideration, including:

1. Project Type

New construction projects often rely on JIT delivery. Hotel renovations are more likely to warehouse products before the property is ready for FF&E installation based on their room occupancy and schedule. Onsite storage is also a consideration.

2. Number of Rooms

The number of rooms you offer doesn’t affect occupancy alone. In most cases, JIT delivery is the best choice for properties under 125 guest rooms. This is especially true for new construction projects. 

For existing hotels planning to renovate, occupancy will play an important role when considering your delivery options and schedule. A 400-unit property requires a vastly different approach to delivering case goods, for example. Warehousing can be a helpful alternative for larger properties, with some owners choosing to have goods delivered in phases instead of all at once.

3. Location of Property

Location is everything, especially in the case of FF&E delivery. Metro-area hotels must keep street parking regulations in mind when planning truck deliveries. If you are unable to park a truck on the city street, you might consider delivering product to a warehouse and then using a smaller vehicle for delivery. This solution involves more product handling but avoids the risk of parking issues.

4.  International Shipments

If you have products coming from overseas, traditional warehousing is your safest option in the event there are project delays. Once a shipment arrives in port, you will be required to receive it, regardless of your construction schedule.

With warehousing, International shipments can be delivered per schedule and installed when the property is ready. JIT is still a viable option, but you’ll want to be aware of the production cut-off date. In the event your project experiences delays, you will be able to push out your delivery date.

Innvision’s Expertise Saves Time and Money

As a provider of turnkey FF&E procurement services, Innvision Hospitality assists hoteliers with all aspects of a new build or renovation project, including determining which delivery option is best. We collaborate with clients, manufacturers, contractors, carriers and management companies to formulate a delivery schedule designed to minimize costly delays ensure timely deliveries.

Our experience and reputation as leaders in design-driven purchasing and project logistics deliver consistently award-winning hotel projects. To request a consultation or find out more about JIT vs. warehousing, contact us today.

Topics: FF&E

About Innvision Hospitality

 Innvision Hospitality is a leading provider of FF&E procurement, interior design, and installation services to hotel owners and operators who are building or renovating their properties.

We take a multi-disciplinary approach to serving our clients, including:

  • A team of highly trained specialists who work together through every step of your hotel renovation or construction process.
  • Field-based procurement consultants strategically placed throughout the country.
  • Extraordinarily talented professionals with deep hotel industry experience in design, project management, and customer service.
  • A commitment to unparalleled service, meeting budgets and hotel brand standards along the way.

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