Penny DeGraffenried, Founder and Lee Mallett, Director of Operations What challenges exist in traditional hospitality procurement models regarding transparency and cost visibility?
Hospitality procurement firms often control vendor selection, sourcing and payment flows, which can limit visibility into how project costs are structured.
DeGraffenried Purchasing International (DPI), a specialist in sourcing FF&E, OS&E and soft furnishings for hotel developments, operates on a fundamentally different model.
DPI manages the full procurement lifecycle for hotel owners and operators, from vendor engagement and tendering through to budgeting and coordination, while remaining financially independent from supplier transactions. Payments flow directly from client to supplier, and DPI’s fee structure is based solely on project complexity, duration and resource requirements.
“To remain independent and impartial, we cannot have a financial interest in supplier transactions,” says founder Penny DeGraffenried.
With over two decades of experience, DPI supports a diverse portfolio of clients across Europe and international markets. It operates as an extension of its clients’ purchasing teams, providing continuous visibility into vendors, quotations, pricing comparisons and budget development. This approach prioritises clarity, accountability and long-term asset performance.
Standardising Procurement Through Technology
How does DPI use technology to standardize procurement workflows and maintain project visibility?
Central to DPI’s model is a strong focus on structure, continuity and internal systems. Its proprietary FFESPEC platform, developed under the leadership of Director of Operations Lee Mallett, is a cornerstone of its operations.
Lee Mallett’s background spans software development, IT solutions and procurement coordination. He oversees procurement operations across budgeting, sourcing, product analysis, logistics, invoicing and installation, while also leading the development of DPI’s internal systems. His combined technical and operational expertise strengthens consistency and transparency across projects.
The FFESPEC platform standardises FF&E and OS&E workflows, embedding DPI’s data-driven methodology into the procurement process. It enables collaboration between designers, operators and suppliers while maintaining full visibility throughout the project lifecycle.
By integrating specification management, tendering, purchasing, quantification and invoice verification, FFESPEC allows teams to manage complex datasets with precision and continuity.
“The FFESPEC platform embodies our commitment to accuracy and accessibility, giving clients full visibility into their procurement process while making complex data manageable,” says Lee Mallett.
Transparency Without Compromise
Why is supplier independence important for ensuring objective procurement decisions and pricing accuracy?
DPI’s approach to procurement is built on an open-book principle. All supplier information can be shared transparently with clients and stakeholders, and DPI does not apply markups or transaction fees of any kind to supplier pricing.
-
To remain independent and impartial, we cannot have a financial interest in supplier transactions.
The firm does not engage in manufacturer rebates, discounts or backend commercial arrangements. It maintains complete independence from suppliers, allowing every procurement decision to be based solely on suitability, performance and price competitiveness.
This independence provides flexibility that volume-driven procurement models often lack. Without obligations to specific suppliers, DPI evaluates each project on its own merits, selecting vendors based entirely on project requirements.
In an environment characterised by cost volatility, increasing scrutiny and complex stakeholder structures, this model ensures accountability and clarity at every stage.
Managing Compliance Across Markets
In what way does DPI manage regulatory compliance across diverse international procurement environments?
Operating across international markets requires careful navigation of regulatory frameworks. Historically, European procurement was fragmented, with each country enforcing its own standards, particularly around fire safety and health regulations.
Over time, the harmonisation of European Union standards and ISO certifications has streamlined cross-border sourcing. This has expanded the pool of compliant suppliers across Europe and Asia, enabling greater flexibility without compromising regulatory requirements.
DPI remains attentive to the nuances that persist across different markets, particularly when working with manufacturers operating under varying regulatory frameworks. Each project is reviewed individually to ensure full compliance with both local regulations and brand requirements.
Recent developments in European markets have introduced greater flexibility in fire-retardancy requirements. With increasing emphasis on sustainability, reliance on chemically treated materials has been reduced in certain contexts. Compliance can often be achieved through integrated building systems such as sprinklers and fire-rated construction elements.
DPI works closely with owners and operators from the outset of each project to define the applicable standards and ensure all specifications align with both regulatory and operational requirements.
Balancing Design and Durability
A key challenge in hospitality procurement lies in balancing design ambition with long-term performance.
Interior designers continue to push creative boundaries, often specifying materials and products that may not align with the operational demands of high-traffic environments. DPI addresses this by advocating for durability, ease of maintenance and lifecycle value alongside design intent.
This approach supports long-term asset performance, operational efficiency and sustained guest satisfaction.
Experience as a Strategic Advantage
Experience remains a defining component of DPI’s offering. Each project presents unique variables, from regulatory requirements to stakeholder dynamics, and no two projects are identical.
DPI’s team draws on decades of collective experience across markets, brands and project types to anticipate challenges and maintain continuity throughout the procurement process.
Clients value this consistency and return to DPI for repeat projects, reorders and operational support over time.
A Collaborative Model
DeGraffenried Purchasing International operates as a collaborative, relationship-driven organisation, combining technical precision with a hands-on, client-focused approach.
By aligning independence, transparency and structured processes, DPI provides a procurement model designed to meet the evolving demands of the hospitality industry.
Hospitality Procurement Services and the Case for Independent Oversight
Hospitality development has entered a period of tighter margins, cost volatility and heightened scrutiny around transparency. Owners and operators are no longer evaluating purchasing partners solely on price negotiation. They are examining how a procurement firm structures its compensation, how it manages supplier relationships and how it balances design ambition against long-term asset performance. The distinction between advisory procurement and intermediary purchasing has become central to that evaluation.
In many traditional models, procurement firms sit in the financial flow of goods, apply markups or receive supplier incentives. That structure can obscure the true cost of furniture, fixtures and equipment, and can blur lines of accountability when budgets move. Executive teams now expect a clearer separation between advice and financial interest. A purchasing partner that does not control bill payment and does not derive income from supplier rebates offers a different governance profile. When original tender quotations are available to the client and pricing flows directly from manufacturer to owner, oversight improves and trust is built through process rather than assertion.
Independence alone is insufficient without technical fluency across jurisdictions. European hospitality projects once faced fragmented national regulations, particularly in fire retardancy and health and safety standards. Over the past two decades, harmonization under EU norms and ISO standards has simplified cross-border sourcing. Procurement leaders must understand where conformity is straightforward and where it remains complex, such as when integrating US suppliers into European projects. They must also track evolving sustainability priorities, including the easing of certain chemical fire treatments in guest rooms where sprinklers and fire-rated doors are in place. The ability to clarify early whether brand standards or local law will govern product specifications can prevent costly redesigns and compliance delays.
A further dimension of evaluation lies in how a procurement firm mediates between creative design objectives and long-term performance. Designers often introduce innovative materials that enhance aesthetic differentiation but may underperform in high-traffic hotel environments. Experienced procurement oversight introduces disciplined challenge, testing fabrics, finishes and furnishings against cleaning requirements, durability and brand maintenance standards. The right partner does not suppress creativity but frames it within practical use and asset longevity.
Experience remains the quiet differentiator. Each project carries unique combinations of brand standards, local codes, supplier markets and ownership structures. Process software can streamline documentation, yet seasoned judgment anticipates issues that may not appear in specifications. Teams that approach procurement as a cumulative learning discipline rather than a transactional checklist are better positioned to safeguard budget integrity and prevent disputes. For executive buyers, sustained performance without litigation or project failure is a more meaningful indicator than headline savings.
Within this context, DeGraffenried Purchasing International stands out for its advisory model. It structures its fees based on project complexity and duration rather than percentage markups, and it does not receive rebates or supplier incentives. Bills are paid directly by the client, while it manages tendering, budgeting and vendor coordination in an open book environment. Its practice of sharing original supplier quotations and allowing direct manufacturer transparency reinforces independence. The firm’s integrated specification and tracking software, developed internally under the leadership of the next generation of management, supports oversight without displacing human judgment. For owners who prioritize transparency, regulatory fluency and disciplined asset stewardship, it represents a considered choice in hospitality procurement services.
...Read more