Tendering for Contracts Training - Top Ten Procurement Tips

Creating a Level Playing Field in Public Sector Tendering and Contracting:       Contract Tendering Tips

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(10)  Share best practice - if you've find a good tender, share it with a partner?

You may very well ask why a good deal should be shared particularly one that you've spent time finding. It is very simply that when sharing a tender you might increase your chances of getting the contract e.g.:
  • Tendering as a group can be on the basis of:

  • Finding out if the same supplier is being used by your colleagues in other areas. This opens up possibilities to pull together to give an even better deal to the contractor (see tip 7 - improve your selling power).

  • Benchmarking the quality of service others are receiving from their suppliers. This information is worth having as it can give confidence when going out to for an 'informal' low value purchase. It can also be used in the contract management of a current service to improve poor performance.

  • Benchmarking on price (but please see note below). We know of at least one national supplier who has different catalogue prices with different customers for the same goods. It could be that the price you are paying could be even better.

(11)  Strategy!!! What is strategy?
Is it how you negotiate?,
is it how you plan?, Does strategy mean getting the very best deal?, Yes, strategy is all of those things and a little bit more.

Strategy is a term that comes from the Greek strategia, meaning "generalship." In the military, strategy often refers to maneuvering troops into position before the enemy is actually engaged. In this sense, strategy refers to the deployment of troops. Once the enemy has been engaged, attention shifts to tactics. Here, the employment of troops is central. Substitute "resources" for troops and the transfer of the concept to the business world begins to take form.
  • 1. Operational Excellence
  • Strategy is predicated on the production and delivery of products and services. The objective is to lead the industry in terms of price and convenience.

  • 2. Customer Intimacy
  • Strategy is predicated on tailoring and shaping products and services to fit an increasingly fine definition of the customer. The objective is long-term customer loyalty and long-term customer profitability.

  • 3. Product Leadership
  • Strategy is predicated on producing a continuous stream of state-of-the-art products and services. The objective is the quick commercialization of new ideas.
Each of the three value disciplines suggests different requirements. Operational Excellence implies world-class marketing, manufacturing, and distribution processes. Customer Intimacy suggests staying close to the customer and entails long-term relationships. Product Leadership clearly hinges on market-focused R&D as well as organisational nimbleness and agility.

Strategy has no existence apart from the ends sought. It is a general framework that provides guidance for actions to be taken and, at the same time, is shaped by the actions taken. This means that the necessary preparation and precondition for formulating strategy is a clear and widespread understanding of the ends to be obtained. Without these ends in view, action is purely tactical and can quickly degenerate into nothing more than a flailing about.

In preparing your responce to tender invitations, you must develop and have in place a strategy for success, maybe not the first or second time of engagement in the process, but as you become more versed in how the process works and adopt your strategy likewise - you will be successful.

(12)  God is Love - but the Practical Question is How do you implement a Tendering Strategy?

"What is Strategy?" Michael Porter. Harvard Business Review (Nov-Dec 1996).

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Understanding and developing a strategy is based on discussion, dialog and debate, in a word, through conversations. Ultimately, the objectives can be expressed via a scorecard or some other device for measuring and reporting on company performance. Individual effort can then be assessed in light of these objectives.

Some Fundamental Questions
Regardless of the definition of strategy, or the many factors affecting the choice of corporate or competitive strategy, there are some fundamental questions to be asked and answered. These include the following:
  • Strategy Objectives Related to Mission & Vision

    1. Who are we?
    2. What do we do?
    3. Why are we here?
    4. What kind of company are we?
    5. What kind of company do we want to become?
    6. What kind of company must we become to succeed in tendering?
A tendering strategy is an adaptive evolving process, designed to determine what is required and devising and adopting means to become the supplier.

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