OS&E

Definition

Operating Supplies & Equipment (OS&E) refers to the consumables and small equipment required for the ongoing operation of a property or facility, but which are not part of its fixed assets or large furnishings.

OS&E typically includes items that need periodic replenishment or replacement, and it is often procured in bulk shortly before opening or handover.

Why it matters

Clear definition of OS&E helps separate operational purchasing from capital expenditure (CAPEX) on FF&E.

In hotels, yachts, and serviced residences, OS&E is critical to guest or resident experience and must be carefully budgeted and coordinated for timely delivery before operations commence.

How OS&E procurement works

1. Needs assessment – Identify all day-to-day operational items by department or function.
2. Specification – Choose appropriate products for quality, brand, and durability.
3. Sourcing – Obtain competitive quotes from suppliers.
4. Logistics – Coordinate delivery, storage, and distribution to operational areas.
5. Replenishment plan – Establish processes for restocking and replacing consumables.

Examples and use cases

• Hotels – Linens, towels, crockery, glassware, cleaning supplies.
• Restaurants – Cutlery, serving dishes, barware, uniforms.
• Yachts – Tableware, bed linens, galley utensils, guest toiletries.
• Offices – Stationery, coffee supplies, kitchenware.

Mini-FAQ

Q: How is OS&E different from FF&E?
A: FF&E covers major furnishings and equipment, while OS&E covers smaller operational items and consumables.

Q: Is OS&E treated as a capital or operating expense?
A: Typically an operating expense (OPEX), although some high-value OS&E items may be capitalised.