MODULE 1

WHAT IS AN EVENT?

Learning Outcomes:
At the end of the module, you should be able to:
1. Know the meaning of Event.
2. Identify the Elements of Event.
3. Differentiate the types of Events; and
4. Prepare an event concept paper.

Introduction:
This module introduces you to events management. And as per definition Events Management is the process
beyond planning, executing, and evaluating corporate, association, nonprofit, government and social events.
You will also learn the working definition of an event and differentiates special events from ordinary
occurrences.

The discussions here will help you to know the different types of special events and seeks to reach the students
to identify and characterize each type and helps you to appreciate how these will relate to your lives. It likewise
aims to provide a framework for recognizing the elements of an event and use this framework to prepare an
event concept paper.

Lesson – What is an Event?

EVENT MANAGEMENT – CONCEPT AND DEFINITION

The term management of events therefore carries a totally different connotation when used in the context of
events. Management of an event encompasses all activities involved in planning, organizing, staffing, leading
and evaluation of an event. Note: you are requested to view pages 1 and 2 of the links given below for more
information.

EVENT MANAGEMENT – CONCEPT AND DEFINITION

The term management of events therefore carries a totally different connotation when used in the context of
events. Management of an event encompasses all activities involved in planning, organizing, staffing, leading
and evaluation of an event.

THE CONCEPT OF EVENT MANAGEMENT IS ALL ABOUT APPLYING PROJECT MANAGEMENT

TO THE CREATION AND DEVELOPMENT OF FESTIVALS, EVENTS, AND CONFERENCES. IT
FOCUSES ON STUDYING THE INTRICACIES OF THE BRAND, RECOGNIZING THE TARGET
AUDIENCE, DEVISING THE EVENT CONCEPT, PLANNING THE LOGISTICS AND COORDINATING
THE TECHNICAL ASPECTS PRIOR TO EXECUTING THE MODALITIES OF THE PROPOSED EVENT.
POST-EVENT ANALYSIS AND ENSURING A RETURN ON INVESTMENT HAVE BECOME CHIEF
DRIVERS FOR THE EVENT INDUSTRY.

DEFINITION AND CHARACTERISTICS OF EVENTS

As part of the discussion, it is important for you to totally understand the definition and characteristics of
Events. Normally, when we talk about events, it refers to the things that happen around us. There are generally
two kinds of events: Ordinary events and Special events.
Having said that, ordinary events pertain to happenings occur naturally in our environment and our daily lives,
while special events are those that leave long lasting positive memories in audience and achieve their
objectives as an event for organizers and other stakeholders. Usually, special events are the ones we do and can
therefore be characterized as follows:

1. Organized for specific purpose/s.

2. Attended by several participants.
3. Held in a specific, pre-determined place.
4. Time-bound (such that it has a beginning and an end); and
5. Cost a lot of resources.

Special events have some fascinating elements incorporated in them that you can remember them during the
whole remaining period of your life. And based on the characteristics, we can craft basic questions that we
need to ask when organizing an event. The 5Ws and 1H.

Therefore, the elements of an event are:

 Type and title of event.

 Purpose for holding the event.
 Participants of the event and the roles they play (examples: attendees, bidders, organizer, suppliers,
etc.).
 Place or venue where the event is going to take place.
 Date and time of the event, and resources needed.

TYPES OF SPECIAL OF EVENTS

If there are elements in Special Events. It can also be classified as

1. Personal Events – organized by and for friends and family to celebrate life’s important milestones.
Examples of these are Achievement celebrations, Anniversaries, Baptism, Birthday parties, Funerals,
Weddings, and Reunions.

2. Corporate Events – organized to enhance productivity and boost the profitability of companies and
contribute to achievement of corporate goals. Examples are new product launchings, Sales rallies, and
Trade shows.

3. Community Events – these are gatherings of the members of a community and their guests to
commemorate historical and/or religious events, promote arts and culture, and strengthen social bonds.
Examples are festivals, school or church events, art exhibits, and local sporting events. This includes big
international events, like World Expo, and the Olympics.

ELEMENTS OF A SPECIAL EVENT

 What event are you organizing?

 Why are you organizing the event?
 Who are expected to attend and to organize the event? Number of attendees and organizers?
 Where is it going to be held?
 When is it going to be held?
 How much is it going to cost?
 MODULE 2
HOW DID THE EVENTS INDUSTRY BEGIN AND DEVELOP?

Learning Outcomes:
At the end of the module, you should be able to:

1. Understand the history and development of Events Industry.

2. Know the meaning of MICE.
3. Assess a MICE Venue.
4. Identify how the events Industry begin and develop.

Introduction:

Module 2 introduces you to the beginning and development of the events industry and how the industry
developed in the Philippines. You will also learn about MICE, which stands for Meetings, Incentives,
Conventions, and Exhibitions or Events. The term is generally linked to the Business Tourism and Events
Industry and refers to any event that brings together a group of people or professionals in a designated location
to discuss and exchange in a defined business or social issue.

The discussions in this lesson will thoroughly present the definition for each type of event represented by the
acronym MICE, as well as the need for and application of each type. Also, part of this module will be about the
set of criteria for assessing and finding a suitable venue for each event type.

Lesson – How Did the Events Industry Begin and Develop?

BRIEF HISTORY OF EVENTS AND DEVELOPMENT

As part of the discussion, it is important for you to totally understand the history and development of Events
Industry. According to Montgomery and Strick, 1995, archeologists have found evidence proving the existence
of areas where primitive people gathered to discuss common interests, like plans for hunting, wars, rituals, and
tribal celebrations. And thousands of years later, these gatherings evolve and turned into business, which now
referred to us as Events Industry.

A Brief History of Event Management: Event Planning Then and Now

Whether it’s a party, class, or promotional occasion, events of any kind are quintessential in connecting
individuals within their communities. And as technology progresses, so does the manner in which people plan
and host events. But, where did event management start? More importantly, how has it led us here? This brief
history of event management compares the then and now of event planning.
The Evolution of Event Management
The earliest recorded events and gatherings promoted peace and friendship between tribes and clans, and the
first known event planner was Cleopatra. She hosted elaborate, lavish, sumptuous meetings in pursuit of
potential lovers. Cleopatra even went as far as entering one meeting by drifting down the Nile River on a boat
filled with candles and perfume in order to impress Mark Anthony.
However, Cleopatra’s events would not have been possible without her servants and free labor. Communication
was very limited, and messages were often hand delivered which usually took weeks, if not months, to be
delivered.
Luxurious events and parties continued with medieval French Royalty. Wealthy aristocratic women were in
charge of event management, the most notable being Madame Pompadour, the mistress to King Louis XV of
France and Marie Antoine. Parties were themed with costumes and popular musicians of the time. The
Industrial Revolution created the need for events and connecting to expand beyond parties for the elite and
royal families. Thus, industrialization provided a stronger economy by increasing manufacturing and
generating business growth, and it ultimately became necessary for people to set up meetings and events in
order to collaborate and grow their businesses. People were making more money, which meant that they could
spend more on hosting events. The expansion of transportation provided options to increase the number of
events and meetings, as well as an array of location options. New modes of transportation such as trains
permitted a feasible manner for people to travel to and from events, all in a timely manner.

The introduction of mobile phones and the internet also had an enormous impact on event planning. With the use
of these electronics, communication could now happen at any time during the day, from anywhere in the world.
Individuals can now create, locate, register, and document an event by using one small portable device.
Then vs. Now
Registration
Then: Prior to the 1990s and 2000s, event organizers had to use hand-written registration processes and all
documents were physically mailed. It could take days to reach its final destination and it was easy for
documents to become lost.

Now: Documents can be emailed or uploaded to a drop box instantly and registration forms can be filled out
online.

Locating
Then: Before the internet, attendees had to pull out a physical map to find the location of an event, which may
have been difficult and stressful.

Now: One simply needs to type an address into Google Maps to receive turn by turn directions and even obtain
a new route if they get lost or make a wrong turn.

Attendees
Then: Curious who’s attending an event? Back then, placing a telephone call to your friends or asking them
directly in-person was the only solution.

Now: Through social media and event organization websites, attendees can see virtually who is interested in or
attending an event.

Advertising and Finding Events

Then: Before the internet, flyers, posters, and word-of-mouth were popular ways to advertise events.

Now: People can search for events utilizing websites such as LocalHop and Facebook. Users can type in their
location and find hundreds of events they may not have even know existed!

The most considerable change technology has afforded is the availability for an individual or organization to have
more control over event management.

Software and websites allow people to construct advertisements for events with user-friendly formats that are
slick and professional. Ticket sales and registration are organized in one spot, and in the fast- paced world of the
internet, time is limited and valuable. Event management websites and apps such as LocalHop save people time
while providing easy options for creating events.
WHAT IS “MICE”?

We will now begin the discussion about MICE and differentiate each of these subsectors. The acronym MICE
stand for:

1. Meeting/s – refers to the gathering of people to discuss a set of agenda or to confer or carry out a
particular activity. Meeting planners and other meeting professionals may use the term “meeting” to denote an
event booked at a hotel, convention center or any other venue dedicated to such gatherings.

2. Incentive/s – is the key tool to encourage employees to boost sales or provide solutions. A meeting event
as part of a program which is offered to its participants to reward a previous performance. These are or (could
be) travel rewards a company may provide in return for excellent professional performance from individual
employees, groups, or partners. Like a few days in a resort, hotel, outside the country or popular hospitality
venue all-expense paid by the company. Of course, this act is to achieve employee/s loyalty in their respective
company.

3. Conference/s – as per definition is a scholarly gathering a participatory meeting designed for

discussion, fact-finding, problem solving and consultation. Conferences take meetings to the next level and
are designed for a large corporate group to share knowledge across several days. They often include not
only key members of the organization, but also guest speakers and the public. Example would be a
university’s faculty conference where members of the faculty present the findings of their research.

Aside from conference there are other 2 Cs that you should know, these are Congress and Convention.
a) 3.1. Congress – is the regular gathering of people who belong to religious, cultural, professional, or
other associative groups. It is often staged to shed light on a particular issue, question, or subject.

b) 3.2. Convention – mostly used interchangeably with congress, refers to a large international or
national meeting. It is usually held to commemorate an event or milestone for the host organization or
institution.

4. Exhibitions – are essentially trade shows and consumer shows where an organization promotes its key
products and services to the public for sale and for consumption purposes. They are hyper- focused events
that drum up business and help employees to network and build lasting professional relationships.

3C’S FOR EVALUATING A MICE VENUE

There are 3(C’s) criteria that can be used to evaluate or to select a venue for an event:

1. Cost – serves as the common factor in decision-making, not only for event venues. Affordability of the
venue and the budget constraints should be the primary concern of the organizer in selecting a venue.

2. Convenience – encompasses the venue’s availability, accessibility, suitability of space, and its safety
features.

3. Charm – event venue should be appealing or has the “WOW’ factor in the eyes of the attendees. Because
probably, they will keep on talking about it when the event is over.
 MICE IN THE PHILIPPINES

In the early 1980s the Philippines was considered Asia’s undisputed leader when it came to hosting
international events and conferences, with Metro Manila’s 4000-sq-metre Philippines International Convention
Centre (PICC), constructed in 1976, the first of its kind for the region. In subsequent years, as other countries
ramped up their efforts to expand their share of the increasingly lucrative meetings, incentives, conferences and
exhibitions (MICE) market, due to a confluence of factors, the segment found itself slipping from the tourism
authorities’ priority list.

In 1982 Manila was rated as the top Asian city for conventions by the Union of International Association’s annual
listings. Over three decades later, in 2013 it dropped to 18th on the International Congress and Convention
Associations’ (ICCA) latest rankings for the region. As a country, the Philippines played host to 53 ICCA-
certified conferences in 2013 and placed 49th globally, trailing ASEAN leaders Singapore (175 events) Thailand
(136), Malaysia (117) and Indonesia (106), each of which were the venue for more than double the number of
large-scale events that year.

GETTING BACK ON TRACK: Despite being one of the pioneers in the region when it came to establishing a
body specifically tasked with bidding for events on a national level, in 2009 the Philippine Convention and
Visitors Corporation was put under the purview of the Tourism Promotions Board (TPB). When President
Benigno Aquino III took office in 2010, it was announced that the MICE market would be reprioritized as a key
mandate of the Department of Tourism (DoT), and the TPB is looking to ramp up its promotional efforts to
once again have the country positioned as a top MICE destination. This has coincided with an organizational
restructure under which a MICE and Business Development Unit forms is one of the TPB’s three core
divisions, along with the Tourism Promotion Department and the Corporate Affairs Unit. The department has
been allocated a budget of P90m ($2.03m), and while indications are that it will eventually develop a brand and
campaign specifically focused on MICE, in the meantime it is piggybacking on the successful “It’s more fun in
the Philippines” campaign by employing the tagline “Business meets fun in the Philippines”.

BIG YEAR AHEAD: With 2015 being promoted as “Visit Philippines Year”, the initiative involves hosting
several large-scale events throughout the year and will be leveraged to showcase the archipelago as a viable
MICE market. The Asia-Pacific Economic Cooperation ministerial meeting and leaders’ summit is arguably
the most important event and will take place in November 2015. According to Guiller B Asido, assistant chief
operating officer of the DoT’s Tourism Infrastructure and Enterprise Zone Authority, the summit will be
hosted at venues across the country to “demonstrate the existing MICE infrastructure in multiple destinations”.

PLENTY OF OPTIONS: The PICC no longer holds the exclusive position of the sole venue for international events, with
a number of private sector facilities popping up throughout the country. The Philippines’ real estate boom is characterized
by greenfield mega developments. Many of these budding mixed-use precincts, in addition to office parks, condominiums
and massive shopping malls, contain a hotel, entertainment and an events component. The 46,647-sq-metre SMX
Convention Centre in Metro Manila’s Pasay City is located beside the SM Mall of Asia, which is among the world’s
largest shopping centres as measured by gross leasable area. The SM Group, a large conglomerate with a strong property
portfolio, also owns convention centres in the Manila suburbs of Taguig and Bacolod, as well as one in Davao City. City
of Dreams Manila and Resorts World Manila, two newly constructed entertainment and gaming districts, also offer
conference facilities. For more exhibition-oriented venues within Metro Manila, the World Trade Centre in the financial
district Pasay, Blue Leaf Filipinas in Taguig and the SM Megatrade Hall in Ortigas each offer 4000 sq meters of hall and
pavilion space. Arenas and concert halls include the SM Mall of Asia Arena and SMART Araneta Coliseum in Cubao.
 MODULE 3
WHAT IS THE SIGNIFICANCE OF THE EVENTS INDUSTRY?

Learning Outcomes:
At the end of the module, you should be able to:

1. Identify the significance of the events Industry to the learner’s and

country’s development.
2. Elucidate the concept of multiplier effect.

Introduction:

Module 3 will enlighten you more on the significance of the events Industry. Why do you have to learn how to
organize and manage an event and many more. Discussions here will allow you to have your own point of view
and encourage you to love this field even more. So bright students, prepare your minds to the lesson. Fighting!

Lesson – What is the Significance of The Events Industry to the national and global economy?

Events Industry’s Significance – From the Learner’s Point of View, Country’s Point of View, and the Multiplier
Effect

The events Industry has its significance to the national and global economy. Defining terms used by both
practitioners and non-practitioners is as much a challenge as defining the significance of MICE to the national
global economy.

THE SIGNIFICANCE OF THE EVENTS INDUSTRY

Significance of the Events Industry – Learner's Point of View

 The events industry has its significance to the national and global economy.

 Expenditure and number of people traveling to and staying in destinations to attend meetings, trade
shows, or other events.

 Amount of investments pour into infrastructure and other developments, including roads and
remarkable venues.

 Some professionals make a career out of organizing festivals and other events.

 Some topics in the study of events management are also applicable to other disciplines and in our daily
lives:
 Budget preparation

 Sales and marketing

 Time management

 Risk/crisis management
 Planning and implementing an actual event give you valuable experience which will help you face the
challenges in the workplace.

 The year 2012 marked a great year in tourism as international tourist arrivals reached the one- billion
mark.

 UNWTO counted about 1.035B tourists who stayed overnight in another country, and Southeast Asia is
one of the regions the posted a double-digit growth at 12% in the same year.

 The UNWTO defined tourism as “the activities of persons travelling to and staying in places outside their
usual environment for not more than one consecutive year for leisure, business and other purposes, except
activities renumerated from within the places visited.

 Events the entrail travelling outside a person’s usual environment are therefore a form of tourism.

 Events can, in fact, serve as one of the tourists’ attractions of destination.

 Example – Travelling to Singapore to attend Ultra Singapore 2017

 The events industry is considered an important subsector of tourism for two major reasons:
 Quantity – events attract guests regardless of the season. Events have the ability of events to offer new
experiences at destinations thus, attracting more visitors and repeaters and holding them beyond peak
days.

 Quality – events attendees spend more compared to ordinary tourists hence, providing higher revenue
for the same length of stay compared to regular tourists. Events attendees also have higher disposable
income and use more tourism facilities that ordinary tourists.
Example:
- Hongkong’s exhibitions industry generated 69,000 full-time jobs and about US$ 5.3 billion in direct
expenditure in 2012, which created a ripple effect as well.

- Singapore earned about US$ 3 billion in 2012 from MICE

 The events industry indeed contributes greatly to a country’s economic development especially for
countries with events that attract international visitors.

 It does not only boost tax receipts and infrastructure development but also created a ripple effect in the
economy.

 The multiplier effect is a direct economic impact, which is equivalent to the “new” money that visitors
or outsiders bring and this money is circulated through spending in the local economy.

 Multiplier effect is created when different persons use the same money several times.

 Each time the money is transferred from one person to another means the money is counted as the
person’s income.

 More transfer means more aggregate income. More aggregate income means a bigger economy.
 Simply put, the multiplier effect is the idea of repetition or multiplication of economic activities and its
effects, such that the income gained from the tourist’s dinner does not end there but creates a series of
other purchases that help the local economy.
MODULE 4
WHO ARE THE EVENTS INDUSTRY STAKEHOLDERS?

Learning Outcomes:
At the end of the module, you should be able to:

1. Identify the stakeholders of the events industry.

2. Analyze the interrelationship of industry stakeholders.
3. Classify the role and expertise of a Professional
4. Congress/Event Organizer and the roles played by the host community in the event industry.

Lesson – Who are the Events Industry Stakeholders?

STAKEHOLDERS - Refer to the parties who hold a stake or interest in the projects or industry. Other
definition tells that a stakeholder is a party that has an interest in a company and can either affect or be affected
by the business.

The stakeholders in the event industry can be classified into four major categories:

1. Professional Congress Organizer (PCO) / Event Manager - are companies which are specialized
into the organization and management of congresses. PCOs can work as consultants for academic and
professional associations and usually provide full services management for conferences including but not
limited to conference design, program development, bidding document, registrations, site, and venue selection
and booking, audio-visuals, IT support, logistics, leisure management, marketing, printing and web services,
fundraising, sponsorship and exhibitor sales, financial management, budget control. There are two types of
event managers:

 Outsourced Event Managers – event management or individuals that organize events on a per
contract basis on behalf of their clients. Independent event managers, professionally knowledgeable,
and entrepreneur.

 In-house Event Managers – positions or departments within an organization that is not into the
business of event management but requires its own group of event managers or coordinators due to
the volume of special events that the company has.

2. The Community – represents both the target market and the people living in and around the MICE
destinations. Under the community are the associations that serves as the second major stakeholder.

• Association – is a group of individuals or organizations who formally formed themselves to

advocate a common interest. This could be classified into two categories:
 a) Trade Associations – they are considered as “non-profit” organizations that goals to achieve needs
of for-profit businesses.” Example is the Philippine Association of Convention/Exhibition Organizers
and Suppliers, Inc. (PACEOS).

b) Professional Associations – they are considered as “non-profit” organizations that are not
involved with business firms. They were formed to assist individuals to pursue common goals.

3. Service Suppliers – they are entities that supplies goods and services to another organization.

4. Government Offices and Regulatory Bodies - is created based on a legal mandate or legislation.
This involves imposing requirements, conditions, or restrictions, setting the standard for activities, and
enforcing in these areas or obtaining compliance. The primary goal for a regulatory body is to protect the
public, such as the providing and enforcing on adequate standards for health and safety in an organization.

MODULE 5
WHO ARE THE EVENTS INDUSTRY SUPPLIERS AND REGULATORS?

Learning Outcomes:
At the end of the module, you should be able to:

1. Identify who are the Events Industry Suppliers and the services they provide.
2. Evaluate the roles of associations as regulatory bodies.
3. Distinguish the roles of the government in the events industry; and explain why events industry needs
regulators.

Lesson – Who are the Events Industry Suppliers and Regulators?

SUPPLIERS - In the events management, suppliers refer to those who provide the services necessary to
organize and execute events properly. Suppliers are people or businesses who sell goods or services to your
business and rely on you for revenue from the sale of those goods or services.

Here are the categories of suppliers that plays a vital role in the Events/MICE Industry:

• Accommodations/Hotels
• Advertising Agencies
• Air and Ground Transportations
• Audio Visual/Meeting Technologies Suppliers
• Booth Contractors
• Freight Forwarders
• Food and Beverage (F&B) Supplies/Caterers
• Ground Handlers
• Manpower and Security Agencies
 • Photography, Videography, documentation, and transcription services
• Venues

PROCUREMENT - Generally refers to the final act of purchasing but it can also include the procurement
process overall which can be critically important for companies leading up to their final purchasing decision. It
is a jargon term for getting or “purchasing” something from a supplier.

Procurement Management Process – The 2022 Guide

Paper-driven procurement has a cascading effect on an organization’s bottom line. Manual inefficiencies cost
organizations a huge chunk of cash in long purchase cycles, missed discounts, and transaction disputes. Trying
to speed up procurement processes with outdated tools like spreadsheets and emails is like trying to start a
microwave with steel and flint.

To take advantage of early purchase and payment discounts, organizations need to toss stone-age procurement
practices out the window and embrace technological solutions. A great way to do that is to automate your
procurement process. It comes with a host of benefits. Modern procurement tools can transform a painfully
slow procurement strategy to world-class overnight.

If your procurement process still relies on ancient tools, it’s time for a major technology makeover. Here’s all
you need to know to power up the procurement process.

What is Procurement?

Procurement refers to techniques, structured methods, and means used to streamline an organization’s
procurement process and achieve desired results while saving cost, reducing time, and building win-win supplier
relationships. Procurement can be direct, indirect, reactive, or proactive in nature.

What’s the difference between indirect, direct, and services procurement?

Direct, indirect, and services procurement are subsidiaries of the overarching procurement process and differ in
aspects like definition, assignments, and more. By taking a deeper look at the difference between these
processes and understanding what they comprise, stakeholders will have an easier time taking appropriate
measures to fulfill the need.

Direct Procurement Indirect Procurement Services Procurement

Acquisition of goods, materials, Sourcing and purchasing materials, Procuring and managing
and/or services manufacturing goods, or services for internal use contingent workforce and
purposes consulting services

Ex: Raw materials, machinery, and Ex: Utilities, facility management, Ex: Professional services, software
resale items and travel subscriptions, etc.
Drives external profit and Takes care of day-to-day operations Used to plug process and people gaps
continuous growth in revenue
Comprises of stock materials or parts Used to buy consumables and Used to purchase external services
for production perishables and staff

Direct Procurement Indirect Procurement Services Procurement

Establish long-term, collaborative Resort to short-term, transactional Maintain one-off, contractual
supplier relationships relationship with suppliers relationships with suppliers

What is a Procurement Process?

It’s the series of processes that are essential to get products or services from requisition to purchase order and
invoice approval. Although we use procurement’ and purchasing’ interchangeably, they slightly differ from each
other.

While purchasing is the overarching process of obtaining necessary goods and services on behalf of an
organization, procurement describes the activities involved in obtaining them. The procurement process in an
organization is unique to its context and operations.

Regardless of the uniqueness, every procurement management process consists of 3 Ps’, namely Process, People,
and Paperwork.

1. Process - the list of rules that need to be followed while reviewing, ordering, obtaining, and paying for
goods/services. Checkpoints/steps increase with the complexity of the purchase.

2. People - these are stakeholders and their specific responsibility in the procurement cycle. They take care
of initiating or authorizing every stage of the process. The number of stakeholders involved is directly
proportional to the risk and value of the purchase.

3. Paper - this refers to the paperwork and documentation involved in every stage of the procurement process
flow, all of which are collected and stored for reference and auditing reasons.

Steps involved in a Procurement Process

Every procurement process involves several elements, including requirements determination, supplier research,
value analysis, raising a purchase request, reviewal phase, conversion to purchase order, contract administration,
monitoring/evaluation of received order, three-way matching, payment fulfilment, and record keeping. Here are
the 7 steps involved in procurement process:

Step 1: Purchase Requisition

Purchase requisition are written or electronic documents raised by internal users/customers seeking the
procurement team’s help to fulfill an existing need. It comprises key information that is required to procure the
right goods, services, or works.

Step 2: Requisition review

The procurement process will officially commence only after the purchase requisition is approved and cross-
check for budget availability. In the review stage, functional managers or department heads review the
requisition package and double-check if there is a genuine need for the requested goods or service and also
verify whether necessary funding is available.

Approved purchase requests become POs, while rejected requests are sent back to the requisitioner with the
reason for rejection. All these can be handled with a simple purchase order software

Step 3: Solicitation process

Once a requisition is approved and PO is generated, the procurement team will develop an individual procurement
plan and sketch out a corresponding solicitation process. The scope of this individual solicitation plan depends
ultimately on the complexity of the requirement.

Once the budget is approved, the procurement team forwards several requests for quotation (RFQ) to vendors
with the intention to receive and compare bids to shortlist the perfect vendor.

Step 4: Evaluation and contract

Once the solicitation process is officially closed, the procurement team in conjunction with the evaluation
committee will review and evaluate supplier quotations to determine which supplier will be the best fit to fulfill
the existing need.

Once a vendor is selected, the contract negotiation and signing are completed, and the purchase order is then
forwarded to the vendor. A legally binding contract activates right after a vendor accepts a PO and
acknowledges it.

Step 5: Order management

The vendor delivers the promised goods/services within the stipulated timeline. After receiving them, the
purchaser examines the order and notifies the vendor of any issues with the received items.

Step 6: Invoice approvals and disputes

This is a crucial step in the procurement process and having procurement software like Kissflow Procurement
Cloud gives you a competitive edge over others. With Kissflow, you can perform three- way matching between
GRN, Supplier Invoice and PO to check if you have received the order correctly and there aren’t any
discrepancies. Once three-way matching is complete, the invoice is approved and forwarded to payment
processing.

Step 7: Record Keeping

After the payment process, buyers make a record of it for bookkeeping and auditing. All appropriate documents
right from purchase requests to approved invoices are stored in a centralized location.

How to optimize your procurement process?

A streamlined procurement process offers better control over every stage of the procurement lifecycle. Here
are some steps to follow to optimize your procurement process.

• Invest in a good procurement software like Kissflow

• Enable swift employee adoption with training
• Define a clear procurement strategy
• Determine costs and plan according to your budget
• Create an open communication channel with suppliers
• Integrate your procurement processes with APIs
• Establish policy and process compliance

The 7 Key Steps of a Procurement Process

Step 1 – Identify Goods or Services Needed

Your procurement process should start when you realize that you need to obtain goods or services from an
outsourced company. With this in mind, your first step should be looking at the whole business and recognizing
the needs of each department. By doing this, you’re presented with a great level of visibility of all the spending
that’s required in your company. Therefore, you can outline the areas of the business that you can look at
saving money and cutting costs.
This stage of your procurement process is where you’ll set your budget.

For example, if an embroidery business was just starting out, in this stage they’d outline how many and what
type of embroidery machine they’d need. Or, if a larger embroidery business was expanding, they’d come back
to this stage and assess what machine they needed to meet customer demands and needs.
Step 2 – Consider a List of Suppliers
Finding the right supplier for your business is vital, so it’s not a decision that you should take lightly. If you
choose to work with the wrong supplier, it could have a knock-on effect throughout your whole business. Not
only could you end up paying more than you should for your goods or services but the delivery times may not
be suited to your business – which could delay your business operations. Your suppliers are your partners and
you wouldn’t enter a partnership without doing your research, would you? So, when you’re looking at your
suppliers you should weigh up your options. We recommend that you make a list and compare all the different
options on offer. That way, you can compare the competition against each other and can see the different areas
in which they excel.

Here are some ideal traits that a top supplier should have:

• Accountability • Ethics
• Production capabilities • Prioritizing building relationships
• Ease of communication

For example, an embroidery machine, whether it’s your first one or an upgrade, is quite an investment. Not only
are they your most expensive cost but they’re your most important commodity, without them, you can’t
produce your products. Plus, you need one that’ll cope with your customer demands, so you should compare an
array of different options from suppliers.

Step 3 – Negotiate Contract Terms with Selected Supplier

After you’ve made your decision on which supplier to work with, you need to negotiate your contract terms
with them. This stage is important as you want to agree on a price that’s fair for both parties and that you’re
both happy to work with. Contracts don’t only cover pricing either. The scope of the whole project – terms,
conditions and timelines of delivery are all areas that should be taken into account. You should always keep a
copy of your contract so that you can refer to it should anything not be up to your expected standard.
Analyzing previous contracts are a great way of scoping where you can streamline your costs and save money.
If you feel that you’ve agreed to a too high a price point in the past or have agreed on unrealistic terms, then
learn from your mistakes going forward with your negotiations. An embroidery company may have a contract
with several suppliers. After all, to be able to embroider their products they’re going to constantly need a
refreshment of stock and materials. So, rather than having to manually order them each time, a rolling contract
can save time and may incur certain discounts too.

Step 4 – Finalize the Purchase Order

Once you’ve submitted your contract to your supplier and both parties are happy with the detailing, it’s time
to finalize your purchase order. Your purchase order is a document that outlines:
• A description of the goods or service • Quantity
• Total costs • Approval of workflow

When you’ve approved your purchase order, it signals to the finance team to release the details to the supplier.
That way, they then have access to all the key bits of information that they need. For example:
 • Reference number (should they • Any other key information
need to chase anything up) they require
• Agreed on payment terms

This document shows a further agreement between the two parties. Whereas a contract agrees the whole collaboration, purchase orders tend to
contractually agree to individual jobs. A purchase order is typically sent via email. Using the embroidery business example again, when they require
an upgrade to a machine, they’ll have to get internal approval for their request to upgrade. So, a purchase order will be prepared including the
description of the new machine, pricing and any other details. Once approved, the finance team will then share the purchase order with the supplier
who’ll begin to prepare the order and sort payment.

Step 5 – Receive Invoice and Process Payment

Once your supplier has received your purchase order, you’ll receive an invoice from them detailing the agreed
price and instructions on how to pay. On this invoice you’ll find details of your order too, so make sure that you
keep a record of them for any future reference necessary. Depending on what you’ve agreed in your contract
you’ll have a certain amount of days to make the payment. A lot of businesses offer 30 days credit notice,
which gives you leeway to make the payment if you can’t do it at the time of the order. However, it’ll depend
on what you’ve agreed between you and your supplier and the strength of the relationship between both parties.
We recommend that you pay your invoices when you receive them. This saves any potential problems in
forgetting and maybe incurring extra costs for being late. Plus, your supplier will appreciate the fact that you
pay on time, every time. This will stand you in good stead and will establish a top rapport between both parties.
Having a great relationship with your supplier is massively beneficial when working within an embroidery
company.
From time to time, they may include extra materials at little or no cost due to your loyalty. Or, should anything,
unfortunately, go wrong and you can’t make your payment, they’ll look favorably on you if you have a good
track record.

Step 6 – Delivery and Audit of the Order

Again, depending on what terms you’ve agreed in your contract your delivery will arrive soon after your
purchase order has been sent in. You should always keep a record of when the order is delivered in relation to
when you ordered it. That way, you can keep track of whether your supplier is sticking to their agreed delivery
times. If they’re not, then you have a proven record of them not holding up to their side of the bargain. And if it
shows that they are, then happy days! You should always double-check the order upon arrival too. The last
thing you want is for you to come to carry out a job and the product that you thought was there turns out it
hasn’t been delivered. could lead to you letting your customer base down for something that wasn’t your
mistake. So, when your order arrives, take your invoice and inspect the delivery. If you notice that something is
missing, then contact your supplier as quickly as possible to rectify the problem and reduce potential
downtime.

For example, if an embroidery company orders an upgrade on their machine to cope with new customer
demands and it’s delivered with a missing part, they’re going to be affected in various ways. Firstly, it could
affect their production and delay orders going out. Secondly, the delay will affect their contracts with customers
and may leave them unhappy and wanting some form of compensation or refund.

Step 7 – Maintain Accurate Record of Invoices

Be sure to keep a record of all your invoices and payment records. In case of any audits carried out, you then
know exactly how much you’ve spent throughout the allotted time and can categories them to analyze your
spending even further. Keeping all your invoices is key to working out whether you’re overspending or sticking
to your budget. For example, if an embroidery business looks back at their records and sees that they’re
overspending on materials they could decide to look for a new supplier. Or, if they review their spending to find
they’re overspending on machinery and equipment, it could be an indicator that the brand they’re using isn’t
suitable for their demands and needs.
Who are the Events Industry Suppliers and Regulators?

SUPPLIERS - In the events management, suppliers refer to those who provide the services necessary to
organize and execute events properly. Suppliers are people or businesses who sell goods or services to your
business and rely on you for revenue from the sale of those goods or services.

ASSOCIATIONS AS REGULATORY BODIES

There are associations that regulates the staging of some events to maintain certain standards. Some examples are:
Union de faire Internationales (UFI) established in the late 1960s and the Bureau of International Expositions
(BIE) who governs the staging of World Expositions (Expos or World Fairs) and was established by an
international convention signed in Paris on November 22, 1928.
Regulators are there to serve the interest of the public and are accountable to the government for living up to the
deal defined by the enabling legislation.

CONVENTION AND VISITOR’S BUREAUS

CVB is a non-profit organization that provides information, resources, and support for the hospitality and
tourism industry. Through the CVB you can learn about hotels and convention facilities in the area. They can
also provide information about the area and help identify properties that can be helpful when planning an event.
A convention and visitor bureau are designed to market a destination to the traveling public and provide area
resources and advice to tourists, event and meeting planners and the media. A CVB is a great resource offering
local insights, brochures, and events calendars. A convention and visitor bureau's marketing initiatives typically
are achieved through some or all the following: trade association marketplaces, advertising, distribution of
promotional and collateral material, direct sales, hosting familiarization tours and other hospitality functions.
This group gives insight into local resources: speakers, food and beverage, convention facilities, lodging and
hotels, and local attractions. When you speak to the CVB, you will want to have basic facts about your event
that you can share. Some of the information the representative may ask you for includes:

• Number of attendees
• Length of the event
• Type of meeting space needed.
• Transportation needs
• The number of guest rooms

THE GOVERNMENT’S ROLE IN THE EVENTS INDUSTRY

Government consists of the activities, methods, and principles involved in governing a

country or other political unit. They play important roles in the events industry, such as:

1. Development of needed infrastructure, particularly relating to access.

2. Maintaining peace and order.
3. Creation of policies and incentives.
4. Destination Management Services.

Government plays a significant role in promoting tourism and events in a country. Its roles are irreplaceable
because of the unique nature of the industry. First, the cost of attracting visitors from all over the world for an
individual business would be costly and affect possible profits as well as lock out
small enterprises. Secondly, regulations set by the government and good infrastructures play significant roles in
ensuring visitors have comfortable and enjoyable time in a country. Lastly, the enabling environment such as
peaceful coexistence, which can only be created by the government, is the primary factor that drives tourism
and events. Therefore, government roles in events are critical for the industry to operate and remain successful.