LESSON EXEMPLAR IN

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Lesson 6: Who Are the Industry Suppliers?

Introduction

As mentioned earlier, a PCO must have his/her own database of

contacts, which includes trusted suppliers. Tried, tested, and trusted
suppliers are vital for the success of an event. Should the PCO lack
certain suppliers, he/she must be able to source them to meet specific
client demands. This lesson identifies the various industry suppliers and
the services they provide.

Learning Objective
 After this lesson, the learner is expected to identify the industry
suppliers and the services they provide.

Suppliers

In events management, suppliers refer to those who provide the services

necessary to organize and execute events properly. "Venue," an annual
publication of Haymarket • Media Ltd., provides a definitive guide to Asia
Pacific Region's convention and exhibition centers, premier city and resort
hotels, unique venues, and a list of key industry suppliers. The following are
some of Venue's MICE supplier categories:

1. Venues
2. Hotels
3. Food and Beverage (F&B) Suppliers/Caterers
4. Airlines
5. Airports
6. Ground Transportation (Car Rental, Coach, and Bus Service)
Ground Handlers (Travel Agencies, Tour Operators, Spouse
Programs)
7. Freight Forwarders
8. Booth Contractors
9. Audiovisual/Meeting Technologies Suppliers Security
10. Manpower Agencies
11. Photography, documentation, and transcription services
12. Advertising agencies, public relations (PR) companies,
printers, providers of corporate premiums, and other
promotional materials

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Venues

Venues are facilities where MICE events are held. Venues may be free-
standing or attached to other properties, like hotel ballrooms or event
spaces located within shopping malls.

Convention centers are examples of free-standing MICE venues. Some

are state owned like the Philippine International Convention Center
(PICC) (www.picc.gov.ph); some are privately run like the SMX
Convention Center (www.smxconventioncenter.com). Convention centers
are by definition huge buildings with flexible spaces that can cater to
events of any size from conventions of tens of thousands attendees to
smaller meetings, breakout sessions, and other smaller functions.

Its smaller and lesser-known relative, the conference center, provides

attendees with room for more privacy and focus as it offers conference
facilities as well as board, lodging, and leisure activities all in one
location (Cruz 2005). An example of a conference center is the Teacher's
Camp in Baguio City. For a destination to compete in the MICE business
arena, it must first be able to offer an attractive venue. The Philippines'
premium resorts offer a competitive package for incentive travel.
However, the country is undergoing a "chicken and egg" situation when it
comes to convention and exhibition facilities. On the one hand, the
Philippines needs to show international event organizers that it has
space, big and modern enough, before these foreign show organizers even
give the country a second look. On the other hand, the Philippines
cannot afford to build a white elephant that is a big and beautiful venue
that does not attract revenues. Moreover, the country is not supposed to
stay in this stalemate longer as neighboring countries are building more
and better venues fast.

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Here are some of the top convention venues in the Philippines:

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In addition to the size, architecture, and fast evolving

technological/functional features of MICE venues, location must also be
suitable for international events. Ideally, MICE venues must be near
international airports and must be within walking distance to five-star
hotels and major shopping areas. It is a challenge for venue owners to
highlight the unique attributes of their property, such as style,
ambiance, and top-of-the-line facilities. There is a wide variety of venues
today. They range from Sydney-Opera-House type of architectural
wonders to underwater meeting rooms with see-through glass walls and
outdoor facilities in the jungle. Creativity just knows no limit, and clients
are becoming more and more aware of their options.

Hotels

A hotel, as we all know, provides guests a comfortable place to sleep in

and other services which the guests will need during their stay.
Additionally, higher category hotels play an important role in the MICE
industry as they provide not only accommodations for MICE attendees
but also meeting rooms or other event spaces and generally, their own
MICE-related services. For this, PCOs must treat hotels as partners. As a
MICE venue, hotels (and resorts) have an upper hand in the incentive
travel sector compared with other venue options, because most hotels
have more suitable facilities, such as spa, casino, swimming pools,
specialty restaurants, etc. Hotels and resorts catering to MICE have their
own events or banquet department. Shangri-La's Mactan Island Resort
and Spa, for example, has an events department separate from its
banquet or food and beverage (F&B) unit.

If you are holding your event in a hotel, ask your hotel if they accept
exchange deals or if they provide free-of-charge (FOC) holding room/s,
accommodations, and/or meals for the secretariat, if you can make a
minimum number of room bookings. Hotels provide additional services
free of charge commensurate to the income and publicity that the event
brings. Assistance for room blocks for big international events can be
facilitated with the help of the Tourism Promotions Board. There are also
discounts for bulk booking.

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Food and Beverage Suppliers

A restaurant is an establishment that provides meals to the public for a

fee. On the other hand, catering provides the same service that a
restaurant does except that the service is provided outside the restaurant
premises. The taste, service, and cost are the major considerations in
choosing the F&B supplier for an event. Be sure to ask the venue
management for the list of accredited caterers.

Nowadays, the "total dining experience" takes a rather bigger

consideration, especially in arranging for an event's F&B requirements.
The food and event must be a perfect marriage." Food is an integral part
of most events. It must enhance the event's potentials in achieving the
event's objectives. The guests, for instance, cannot have a seven-course
meal at a rock concert, or mangga't bagoong (green mangoes dipped in
shrimp paste) and puto't dinuguan (rice cupcakes dipped in pork blood
stew) in a meeting, because these types of food may restrain meeting
attendees from talking or taking notes. Food served at meetings must
help draw sound and creative ideas from the meeting attendees. Event
organizers must likewise pay good attention to special guest
requirements, like vegetarian meals, cultural dictates, or religious
restrictions. With the heightened awareness on health and wellness,
"healthy options" are also trendy.

Airlines

Airlines play an important role in transporting people and goods

essential to make the events industry tick, especially for international
events. The number of air seats going to and from a city contributes to
its viability to compete as an event destination. There must be a balance
in the supply and demand for air seats and airlines operating in a
destination. Monopoly of a single carrier and a high volume of seat sales
may result in expensive airfare; while lower seat sales may mean losses
for the airlines. Both are unhealthy for the airline industry. Through the
years, the world has been witness to giant leaps in the developments in
this particular mode of transportation. Airlines today offer services and
conveniences which used to be unimaginable, from hotel-like comfortable
beds and gourmet dining to pedicure and entertainment on board, all
brought about by technological innovation, service enhancement, and
competition.

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Airline managements strive to make incentive and business travelers feel

at home. Hence, it is a great help and advantage for an event organizer to
have a tie-up with an airline company, preferably with the national flag
carrier, for a particular event. Following are some services which may be
provided by airlines to MICE clients:

1. Attendance promotion in areas serviced by the airline. An example

of this would be if airline offices would serve as information office
for the event. The airline may also provide shell brochures with
blank spaces on which to overprint information about the event.
2. Free or discounted tickets for site inspection and for attendance
campaign
3. Special rates or ticket discounts or upgrades for delegates
4. Free/discounted tickets for speakers or VIPs whose airfare would
have otherwise been fully shouldered by the organizer
5. Advance seat reservations for delegates
6. Excess baggage allowance for delegates
7. A plane bearing the company or event logo of the client for
worldwide events,using special exterior decals (which are
removable)
8. Menu covers and/or headrest covers bearing the comp y/event
logo
9. In-flight announcements about the event, welcome message, and
signage
10. Hotel rates, taxi info, city maps, and other useful materials
to be provided on board

However, like any business deal, such requests will be evaluated by the
airline on the basis of the publicity mileage and business gain that the
event will generate for the airline company. If a particular event can
bring in significant benefits to the airline relative to the cost, it may
welcome the appointment as the official carrier and provide a
proportionate array of special services for the organizer and the
delegates.

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Airports

First impressions last. In MICE, airports have the responsibility of

making a good first impression for international participants. Airports,
international gateways in particular, are doors into a country and
provide visitors with their first taste of a country's culture. For this,
airports must be efficient on top of being attractive.

The simplest way to create a positive image for an airport is to let go of

travelers as fast as possible. Visitors should pass through immigration
and customs procedures quickly. Easy to say, but it is a challenge that a
lot of ports all over the world are still trying to overcome today. This is
because airport operation is not run by just one organization. Taking
part in the airport's daily routine in the Philippines are several
government agencies, such as the Civil Aviation Authority of the
Philippines (CAAP), Bureau of Immigration, Bureau of Customs, Bureau
of Quarantine, Department of Tourism (DOT), the Philippine National
Police, Airport Security, and others. Likewise, there are privately run
passenger and cargo airlines, concessionaires, brokers, hotels, travel
agencies, and transport services. Overseeing everything is the airport
administration which takes care of things from replenishing toilet paper
to implementing airport policies. It is all a matter of efficient
coordination.

Sampaguita leis or its variations are still a popular sign of welcome in the
Philippines. There are nonetheless a number of other creative gestures to
welcome guests at the airport. In Manila, "meet and greet" arrangements
are the easiest to arrange through travel agencies accredited by the
Ninoy Aquino International Airport (NAIA). While it is difficult (but not
impossible) to dedicate an immigration or customs counter exclusively
for delegates of a particular event, especially for group arrivals, one or
two of these counters may display the event logo to make the delegates
feel welcome. Airports may also hang event banners and streamers to
welcome delegates.

Since waiting is unavoidable, the most that organizers can do is to

entertain guests while they are in the immigration line or while claiming
their luggage. For instance, the event organizers may request a rondalla
through the DOT-NAIA to add a Filipino touch of welcome while diverting
the guests' attention. Some airports have big screens or LCDs which can
be used to air advertisements, welcome messages, or other entertaining

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shows and relevant information. Another related example, although not

in an airport, is the welcome dance performed by porters of Negros
Navigation. Surprises like these leave a lasting impression and make the
guest look forward to the main event. The point is to make the visitors
feel important.

Transportation Suppliers

Movements of goods and people are an integral part of MICE; hence,

providers of transportation services are important suppliers as well.
Table 6.3 shows the modes of transportation which are of particular
interest in the MICE industry. The table is adapted from Lumsdon
(1997).

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Ground Handlers

Ground handlers are travel agencies and tour operators which assist
event organizers for the tours and travel arrangement for event
participants.

Freight Forwarders

The freight forwarder's main role in MICE is to bring goods for the exhibit or
for use in a conference from their point of origin to the event venue in good
condition and in time for the event. These goods may range from preserved
butterflies to hovercrafts.

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Here are the simplified steps undertaken by freight forwarders:

1. Pick up goods from exhibitors/presenters.

2. Book the goods for transport to the country where the event is going
to be held.
3. Pack the goods properly as some equipment or materials require
special packaging which only professionals can do.
4. Prepare departure documents and permits.
5. Continuously monitor movements of goods until arrival in destination.
6. Prepare arrival documents and customs entries, and secure special
7. Transport goods from customs to forwarder's warehouse for storage
until the exhibit/conference venue is open for ingress operation or
move-in.
8. Transport goods from the warehouse to event venue.
9. After the event closes, repack the goods for egress operations or move-
out, and transport goods to forwarder's warehouse for storage until
re-export process is completed and goods are loaded into the craft. 10.
Facilitate customs processing again until goods are released and
delivered back to owners.

All goods entering the Philippines from a foreign country, even if they are
previously exported or brought out from the Philippines, are subject to
customs duties and taxes upon each entry into the country, except
otherwise indicated in the Tariff and Customs Code of the Philippines.

One such exception is for goods intended to be brought back to their

country of origin within six months from the date of acceptance of the port
of entry. Items for display in public exhibitions and for use in workshops
and conferences qualify under this category. The Bureau of Customs must
be properly informed upon entry of such items. In this case, the consignee
or the owner of the goods may be required to accomplish a re-export
commitment form duly secured by a cash bond deposit equal to one and a
half times the ascertained duties and taxes on the particular goods. The
bond is refundable if and only if the exact item leaves the country within the
specified time. To make sure it is the same item, photos, serial numbers,
and such other identification measures are taken upon entry. This
procedure is necessary as customs collections help the country in a
macroeconomic point of view.

A waiver can also be made instead of making a cash bond deposit. For
example, if the foreign owner of the equipment has a local counterpart, the
local office must make a promissory note committing to pay the required

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duties and taxes in the event that the equipment does not leave the
Philippines as promised.

On the other hand, goods leaving the Philippines for the same purpose and
with the same intention of bringing them back must be properly identified
as well. A certificate of identification must be accomplished and submitted
to the Bureau of Customs. This same certificate will serve as the basis upon
the goods' re-entry to make sure that they are the same goods that left the
country. Should the customs fail to match the goods with those in the
certificate, all items, not included in the certificate of identification, shall be
charged with the rightful duties and taxes.

So, to avoid problems, make sure that all items are properly identified and
all required arrival and departure documents are accomplished. Even if it is
the freight forwarder's duty to make sure everything is in order, it is still
advisable for the consignee or the owner to double-check. For in the end,
the consignee is still the one who will end up paying for all the charges.

Booth Contractors

Exhibition contractors supply the necessary materials for the exhibit

booth particularly the panels and octanorms or the metal frame needed
to put up the booth for the exhibitors. Some of the booth contractors in
the Philippines are Centrex Corporation Neon Philippines, and Danex
Signs, Inc. There booth but these three are the major players.

The best booth space in trade fairs is an island booth, with all its facing
the aisles The booth must have a good design, theme, and clear
representation it showcasing. It must also be able to easily catch the
attention visitors and draw toward the booth. Exhibition contractors are
responsible for executing a booth design, matter how complicated it is.
Exhibitors may also ask the contractor to design the booth, but it the
exhibitor's responsibility to choose or produce the best design in order to
make the most out of its participation in the event.

Event organizers may assign an official booth contractor for each event.
The official booth contractor may in turn levy a certain fee, like a corkage
fee, on exhibitors who choose to use the services of other contractor/s
instead of the official one. The reasons assigning an official booth
contractor include easier coordination and economies of scale goods are
cheaper by the dozen). The booth contractor is the one who coordinates
with the venue coordinator or representative regarding electricity load

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and other technical requirements of each exhibitor. Thus, there is no

designated official contractor, the venue and the event organizer will have
to coordinate and facilitate demands coming from several exhibitors and
their contractors.

Meeting Technology Suppliers

Reed Travel Exhibition's 2008 data showed that 57.4% of event

managers use online registration, 20.4% use video conferencing, 17.7%
use social networks, and 14.2% use blogs. Event planners likewise
mentioned other technologies like electronic surveys, cyber cafés, and
podcasts. An example of an event that makes use of online registration is
the Asia-Pacific Incentives & Meetings Expo (AIME) (www.aime.com.au).
Online registration technology allows meeting delegates to confirm their
attendance using the Internet. Online registration can be email-based
wherein the form you fill out is sent to an electronic mail address and a
real person keeps track of these emails or it can be database driven
wherein the form you fill out is received by a database or a content
management system (CMS) which functions like an electronic logbook. In
simpler terms, email-based registration is like receiving guest
confirmation by postal mail, while CMS is like allowing the delegate to
write his confirmation directly in the attendance logbook himself. Since it
online, registration can be done from halfway across the globe in just a
few seconds. Moreover, CMS also allows making payments online.

Video conferencing is a real-time meeting between two or more people

who are in two or more locations, using special audiovisual equipment.
Earlier versions of video conferencing devices are made up of analog
television sets and satellites. Today, data, sounds, and images are mostly
transmitted using the Internet. Major suppliers of video conferencing
systems include Polycom, Tandberg, Radvision, and Vtel. The use of
video conferencing saves time and travel costs and is said to support the
"green" movement, as it eliminates the carbon gases emitted when a
person travels, especially by air. There are a number of cheap ways to do
video conferencing nowadays, like Skype and Viber, and such means
keep on increasing and improving fast.

Online social networks are also helpful in events, especially in marketing.

These are Internet sites which include Facebook, Twitter, YouTube, My
Space, and Multiply. Blog, which is short for "web logs," meaning regular
"log-in in the World Wide Web," is also commonly used nowadays. The

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popularity of social networks and blogs made them noteworthy

promotional tools for events.

Podcast is another technology brainchild that is starting to play an

important role in MICE. Podcasts are recorded electronic learning
materials, such as lectures and language tutorials, usually in the form of
MP3 files played using iPods. "Podcast" came from the words "iPod" and
the verb "to cast" (or to transmit). iPod is a product name, like Xerox,
which because of its wide acceptance and uniqueness became a
household common noun. Webcasts and Skypecasts are similar to
podcasts except that these are played using the web and not iPods.
These "casts" are perhaps the future of handouts.

Although not mentioned in Reed's survey results, mobile phone

technologies play an invaluable role in MICE. They function as a watch,
mirror, means of communication, calculator, organizer, currency
converter, address book, camera, audiovisual player, data storage,
processor, etc., and they can easily connect to the Internet. Thus, a
number of events provide programs and updates that can be simply
accessed by attendees using their mobile phones with Wireless Access
(WiFi) provided.

It is true that technology development has gone leaps and bounds in the
past three decades since the coming of the Internet age. This rendered a
number of good old equipment almost obsolete, like typewriters and
overhead projectors to give way to better ones, like computers, LCD
projector conference microphones, intelligent public address (PA)
systems, simultaneous interpretation systems, electronic voting systems,
and the like. However, there are still some who prefer using white board
and marker, flipcharts, and the traditional paper and pencil. A good
meeting planner should therefore be able to provide the materials with
which speakers and guests would be most comfortable.

Stagecraft International (www.stagecraftintl.com) is one of the

Philippines' largest professional sound, lighting, conferencing, and video
equipment specialists. Established in 1987, the company's extensive
equipment inventory and highly qualified pool of engineering production
staff have allowed Stagecraft to be the company of choice for both local
and international prestigious events and projects, among which are the
1994 Miss Universe Beauty Pageant, 1995 World Youth Day, 1996 APEC
Summit, 2004 Presidential Inauguration, the Ayala Museum Ceremonial
Opening, and the Philippine Pavilion at the 2005 World Expo held in
Aichi, Japan.

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Security

According to studies, security is one of the important factors considered

by organizers when choosing a venue and planning for an event. All
MICE venues have their own safety measures installed and their own
security personnel to implement these measures. However, it is advisable
to contract the services of a security company to provide additional event
security guards.

Security requirements vary depending on the number, nationality, and

political status of event attendees and/or speakers, such as dignitaries,
celebrities, etc. It is important to know the protocol for different types of
attendees.

The Philippine National Police has an office dedicated to assisting

organizers in their event's safety concerns. The Directorate for
Operations (PNP-DO) has a special concerns/ events unit which
addresses such requirements.

Manpower Agencies

Other than security personnel, additional manpower may be required for

an event, such as registration staff, marshals/ushers, telemarketers,
encoders, interpreters/translators, extra waiters, messengers, and
janitorial staff. These positions created by the event may not necessarily
be permanent but are still needed; thus, the event organizer may employ
or contract such additional services temporarily, directly or through
manpower agencies. On the-job trainees (OJTS) from universities are
sometimes tapped to perform some of these duties, because
responsibilities are limited for these positions. If it is a big international
event, the Tourism Promotions Board may be able to provide manpower
assistance for secretariat, registration, and airport reception. The
organizational structure and skills required in events management are
discussed in the succeeding lessons.

Procurement

Procurement is the jargon for getting or "purchasing" something from a

supplier. You can do this through shopping or bidding. Bidding is a
process wherein you announce the details of what you need, which can
either be goods or services, and interested suppliers will give you an
offer. Usually, it is the cheapest offer that is accepted, as long as it

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satisfies the specifications indicated in your announcement, request for

quotation (RFQ), or invitation to bid (ITB).

Steps in Procurement

1. Prepare a list of the things you need to buy and the reason why
you have to buy them. Describe the goods/services that you need
and write down the details. This is called the "Specifications" for
a product, or the "Terms of Reference" (TOR) and the "Scope of
Work" (SOW) for services. You may base these on online sources,
similar purchases made in the past, and reference quotations. It
would also help to research about the leading suppliers of a
particular product or service as well as market trends.
2. Prepare a Gantt chart or a schedule of procurement. The
schedule must indicate deadline for the specifications, the
quotations or bids, the delivery, and the payment.
3. Request for budget and have your list of items approved.
4. Prepare the criteria for selection. For example, the criteria for
event venue selection may include: (a) facility cleanliness and
maintenance, (b) ease of communication with the venue
coordinator, (c) availability of space, (d) availability of lighting and
equipment, and (e) quality of food and beverage. These five items
refer to the technical specifications, and the cost refers to the
financial offer. Some event organizers put more weight on the
technical qualities than on the cost.
5. Announce your requirement by sending out the RFQ or the ITB.
This is in a letter format indicating the specifications and/or the
TOR which you prepared earlier. It must also contain the
schedule, especially the deadline for submitting quotations and
the target date for delivery.
6. Evaluate the bids/quotations using the criteria you prepared.
7. Respond to all bidders. Turn down those bids that were not
chosen and sign a contract with the winner.
8. Make sure that deliveries are made on time and according to the
specifications/TOR.
9. Pay the supplier according to your agreed terms.
10. Evaluate the supplier and take note of the good performers so
that you can ask them to supply you again at your next event.

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