1. Procurement Procedure for Goods and Services AI-OP-ADM-003 Required Training Module For: Managers Guest Services Associates Maintenance Lead Housekeepers

2. Purpose This training module has been prepared to introduce the procedure which has been developed to ensure that our inventory levels stay stable. Authority: AI-OP-ADM-003AI-OP-ADM-003

3. What does it mean for you? In other words….Why should I care? When inventory levels are defined, and controlled, then items are always ready for you when it comes time to do your job. Ok…so, what does that mean for me in my daily work? Read on!

4. Scenario #1: Imagine you are working to prepare the lobby for our guest breakfast. As you are setting everything out you realize, that you are out of milk. This is frustrating at the least, and further now you need to explain to guests, (make excuses) as to why they dont have milk for their cereal. Scenario #2: You are the lead housekeeper. It is early morning and you are getting the items ready for the room attendants. You realize the night shift used the last of the Styrofoam coffee cups. Sure, someone can probably make a last minute run to the store (and have to put off other matters till later), but they probably wont get back in time for the housekeepers to place the cups in the rooms…that probably means you will be running to rooms later on to place the cups. How do you feel? Frustrated at the prior shift for not doing their job? Embarrassed at the image in the guests mind of how incapable you look? Perhaps a little of both.

5. So, is there a way to avoid these scenarios and others like it? Yes! Thats why this procedure has been developed. Lets look at the details a little more closely.

6. Realize a need for goods or services Make Appropriate Notification Order is placed Receipt of goods or services Storage of goods in secure area Notification that a change in inventory levels has occurred Updated information is entered in database to ensure correct levels are maintained The Process….

7. Lets Break it Down…

8. Even with the best Inventory Control systems, there are times when inventory levels may not meet current needs, such as peak occupancy periods. Often it is a front-line associate who first identifies an immediate or pending need for goods or services. REALIZE A NEED FOR GOODS OR SERVICES

9. When you notice an item is running low, take responsibility and immediately note it on an Item Request Form (AI-FORM-009).AI-FORM-009 This form is found at the front desk, where a running list of needed items is kept and submitted nightly for ordering. Ensure you fill out all known required fields. MAKE APPROPRIATE NOTIFICATION Note: For Night Audit Personnel: Ensure that the Item Request Form is attached to your nightly paperwork. Specifically, the Night Audit Compliance (AI-FORM-006).

10. The General Manager (GM)/On-Site Manger (OSM) will: Review the Item Request Form Approve or deny the request based on current inventory levels and funds available If approved, order items or pick up items from the store. For items that will be shipped to the property, place the paperwork associated with the order in the On Order file located at the front desk. Order is Placed Note: If an item is ordered and is to be shipped to the property, a copy of the order and a check (for C.O.Ds) will be placed in the designated file at the front desk.

11. RECEIPT OF GOODS OR SERVICES The Receipt Portion Consists of 4 Crucial Elements 1.Responsible Individuals 2.Inspections/Verifications 3.Form Execution 4.Form Control

12. RECEIPT OF GOODS OR SERVICES, continued… Upon receipt of goods or services, the following procedures are carried out by any one of the following: Guest Services Associate Lead Housekeeper GM/OSM Designated Individual (DI) Typically, it is the Guest Services Associate who will handle the Receipt of Goods or Services, however, depending on front desk activities or guest interactions, it may be any one of the above mentioned individuals. As such, all need to be aware and know how the in-process works. 1. Responsible Individuals

13. RECEIPT OF GOODS OR SERVICES, continued… The first thing to do when an item is delivered, is to pull the incoming order paperwork from the designated file, located at the front desk. If this is a C.O.D. delivery, there will be a check made out for you to give to the driver. Look at the paperwork and see if the goods received actually match what you are signing for.

14. RECEIPT OF GOODS OR SERVICES, continued… For this portion, you will need to fill out a Receipt of Goods Verification – ROG (AI-FORM-010). Use the information that you gather from the Inspection/Verification to fill out the ROG: Remove the packing slip(s) from the box(es). Compare the items ordered to the packing slip and note any variances on the ROG. Compare the item(s) on the packing list to the actual contents of the box(es) and note any variances on the ROG. 2. Inspections/Verification Note: Any variances noted on paperwork must be brought to the immediate attention of the GM/OSM.

15. RECEIPT OF GOODS OR SERVICES, continued… 3 Form Execution Note: Any variances noted on paperwork must be brought to the immediate attention of the GM/OSM. As with all forms, the ROG must be filled out in its entirety. Do not leave blanks or missing information Ensure you note the designated storage area where the items will be stored

16. RECEIPT OF GOODS OR SERVICES, continued… For this portion, you will need to fill out a Receipt of Goods Verification – ROG (AI-FORM-010). Use the information that you gather from the Inspection/Verification to fill out the ROG: Remove the packing slip(s) from the box(es). Compare the items ordered to the packing slip and note any variances on the ROG. Compare the item(s) on the packing list to the actual contents of the box(es) and note any variances on the ROG. 3. Inspections/Verification Note: Any variances noted on paperwork must be brought to the immediate attention of the GM/OSM.

17. Receipt of Goods or Services, continued… Place the finished ROG along with all supporting documentation (Packing Slip, invoice, receipt, original order paperwork) in the Received Orders file located at the front desk. 4. Form Control

18. STORAGE OF GOODS IN A SECURE AREA Immediate storage in a secure area is the next critical step. Items must be stored immediately after the Inspections/Verifications have been handled. If items are easily transferred to the storage area, then do so. For large, bulky, heavy items or if Front desk demands are high, then call for assistance in storing items. There is usually someone who is available to aid in handling the items. A lead housekeeper, maintenance, or GM/OSM are usually nearby. It is crucial that items are stored in the exact location as noted on the Receipt of Goods ROG Form.

19. STORAGE OF GOODS IN A SECURE AREA Secure Storage Areas are noted as follows:

20. STORAGE OF GOODS IN A SECURE AREA The person storing the items, should attach the following label: ***ATTENTION*** This is a Controlled Inventory Item. Notification of Removal from Inventory must be given to front desk immediately upon opening. Item_______________________QTY_____________ Labels are found in the front office, on the Clip Board, under the Receipt of Goods Verification Forms (AI-FORM-010) Each item that is unpacked and placed on the shelf, should receive a label. This will later aide in the inventory control process as outlined in the Inventory Control Procedure. (AI-OP-ADM-TBD)

21. Notification that a change in inventory levels has occurred Notification occurs when the Night Audit forwards all information gathered from the day shifts and forwards to the GM/OSM. It is imperative that the person doing the Night Audit has everything they need. It is the day/evening shifts responsibility to ensure that the Night Audit has everything they need to submit their complete night time package requirements.

22. Updated information is entered in database to ensure correct levels are maintained When the GM/OSM review all paperwork to ensure completeness and accuracy. The GM/OSM or DI updates the Property Inventory Data Base to reflect the increase in stock levels for the items received.

23. When everyone does their part, then the Inventory Control Process, runs more smoothly and, inventory levels remain constant insuring you are not left in the position of making excuses to your Guests because you ran out of milk!

24. 1 Realize a need for goods or services Identify the need or impending need. 2 Make Appropriate Notification FILL OUT ITEM REQUEST FORM (AI-FORM-009) 3 Order is placedGM/OSM Places Order 4 Receipt of goods or services Fill out Receipt of Goods Verification (AI-FORM-010) 5 Storage of goods in secure area Immediately arrange for storage of goods in appropriate and secured storage area 6 Notification that a change in inventory levels has occurred GM/OSM review nightly paperwork 7 Updated information is entered in database to ensure correct levels are maintained GM/OSM or DI updates Property Inventory Database (IDB) Time to Review…