General Manager Basil Massey asserts, "Quality Comes at a Price"

Basil Massey, General Manager at Brookfield Properties, offers valuable insights into the complexities of hotel procurement. His approach is built on a foundation of thorough preparation, strategic negotiation, and a deep understanding of both cost and quality. He emphasizes that “quality comes at a price,” a philosophy that guides his negotiation strategies and decision-making processes.

When negotiating with suppliers, Basil begins by meticulously planning each negotiation. For technical packages, he collaborates with his technical team to understand the complexities involved. He consolidates requirements across current and upcoming operational sites, using volume as a tool to secure better commercial terms. A key part of his strategy is ensuring that every bidder fully understands the requirements, allowing for an accurate, apples-to-apples comparison of offers. Additionally, he researches the supplier’s business profile and crafts a tailored strategy for each negotiation.

Basil's approach to securing good deals extends beyond simply obtaining the lowest rate. He highlights that a good deal encompasses better payment terms, quality improvements, and even potential buy-backs of existing systems. Negotiating favorable payment terms, such as credit periods or payment upon delivery, is crucial. When advance payments are unavoidable, he negotiates for secure advances against an Advance Bank Guarantee (ABG). His emphasis on planning, consolidation, and leveraging volume ensures that he achieves the best possible deals for his hotel.

Problem-solving is another area where Basil excels. Faced with high Annual Maintenance Contract (AMC) prices for equipment, he took a proactive approach. By negotiating the package on a Total Cost of Ownership (TCO) basis, including AMC prices for the next 10 years, he was able to significantly reduce costs. He also facilitated joint meetings between the OEM’s project sales and after-sales teams, aligning existing AMC prices with those of new equipment. This comprehensive approach not only solved the immediate problem but also ensured long-term savings for the hotel.

Building strong supplier relationships is fundamental to Basil’s procurement strategy. He believes that trust and transparency form the foundation of these relationships. By honoring commitments and assisting suppliers with billing issues, he ensures smooth and timely deliveries, fostering long-term collaboration. His approach reflects a deep understanding of the importance of supplier relationships in maintaining operational efficiency.

Basil stays informed about new trends in buying through continuous learning. He reads business magazines, newspapers, and research papers and actively engages with a large network of procurement professionals via WhatsApp groups and industry institutions. Additionally, his constant interactions with suppliers keep him updated on the latest trends, ensuring that he remains at the forefront of industry developments.

Balancing cost and quality is a delicate act, and Basil approaches it with a keen eye for detail. He carefully examines any deviations in offers from the parameters specified in the Request for Quotation (RFQ). If a slight adjustment in specifications can lead to significant cost benefits without compromising performance, he seeks approval from the relevant stakeholders before making changes.

For those aspiring to work in hotel procurement, Basil offers practical advice. He highlights the dynamic growth of the hospitality and hotel industry in India, emphasizing the diverse opportunities it presents. With the industry’s rapid expansion, there is ample room for professionals to innovate and excel.

Understanding the procurement cycle is essential, according to Basil. This cycle, which includes planning, sourcing, contracting, ordering, receiving, paying, and managing supplier relationships, ensures efficiency, transparency, quality, and compliance. Each step is crucial for the smooth operation of procurement functions.

When it comes to contract negotiations, Basil advises leveraging competition among suppliers, working closely with them to understand mutual needs, and breaking negotiations into stages to build rapport and trust. He emphasizes the importance of tying contract terms to supplier performance, ensuring that excellence is rewarded and shortcomings are addressed effectively.

Basil Massey’s approach to hotel procurement is a testament to his expertise and dedication. By focusing on quality, strategic negotiation, and strong supplier relationships, he has developed a robust procurement framework that ensures both operational success and long-term value.