Procurement and Tendering
Procuring the right supplier or solution is a challenge and an opportunity. Hidden costs and differentials complicate what can, on the surface, appear to be a simple exercise. Conducting a tender with limited exposure to current market rates and suppliers, or guided by an outdated contract is not optimal. Bringing in specialists affords industry expertise, up-to-date market exposure and ensures you get the best outcome. Our consultants can give you the right support, from advice and knowledge to running a full tender and procurement exercise on your behalf.
A critical step to successful procurement is to establish the current benchmark, both for scope and cost. An incomplete understanding of the current position can lead to poor procurement choices.
The Full Focus
Too often procurement is driven by a narrow focus, resulting in decisions being made on the basis of a single factor such as unit cost. This can result in sub-optimal outcomes where other factors including contractual terms, exit fees, additional value-added services and service level agreements are not taken into account – often at a hidden cost or lost opportunity.
Achieving the best outcome from any procurement exercise requires oversight of the full contract. Establishing SLAs that work for your business and provide clear responsibilities and roles are essential for the smooth running of a contract. Identifying differentials between suppliers gives you more control over the procurement.
The objective of any procurement exercise should be to provide transparency on the suppliers and options available. Through transparency clear comparisons can be made, current costs or processes can be benchmarked against the proposals and the best supplier and options selected. This ensures costs and benefits are both optimized.