TENDERING

TENDERING

A Tender Process is a clearly delineated activity that begins with the development of tender documents and ending with contracting. Sometimes this is preceded by a pre-qualification phase.

Reasons for conducting Invitations to Tender are because the customer:

  • Lacks knowledge of the product, service or industry.
  • Simply lacks the resources in their own company at the time the contract will be done.
  • Wants to try e-procurement solutions (e-Sourcing, sometimes also including e-Auctions), which SPG can conduct on their behalf on an assignment, project or other basis.

Our consultants are skilled in tendering in all sorts of industries and situations. Their senior status is testimony to their long and valuable experience. There is, after all, a considerable difference between buying building materials and buying call center services. This is something SPG respects greatly, and we select consultants carefully according to the type of tender.

If it’s necessary to collect information on the marketplace, products and supplier proposals for solutions we recommend starting with an expression of interest or pre-qualification. At this point low-cost country sourcing should be investigated, and any potential cost savings should be weighed against risks in quality and delivery. Pre-qualification provides valuable information used for developing specifications and shortlisting suppliers for the next stage.

The customer needs to make some crucial decisions before the tender process is started. There are decisions on product quality levels, service delivery and conditions of supply. In addition, logistics and other important contract terms should be thought through and articulated. High quality specifications ensure comparable quotes, simpler evaluation and better leverage going into the negotiating phase.

The number of questions left to the bidding phase can be reduced significantly using well thought out specifications. If the contract format, or at least guidelines for contracting, is included in the tender dossier, this allows negotiations with shortlisted vendors to lead more quickly to a signed agreement. Contract formats, depending on the supplier strategy, are selected according to the customer’s prioritisation of strategy, finance and risk criteria.

Scandinavian Purchasing Group can conduct an effective tender process, with or without electronic procurement tools, and in ways that often deliver spectacular savings and minimized business risk.

BEST PRACTICE

Competition and Tenders

Question: how often should incumbent suppliers be tested competitively through negotiations or formal tenders?

Answer: for the foremost purchasing practitioners, the frequency of strategic and tactical tenders increases by a factor of 10. Competition is introduced within the framework of a category strategy. Processes for introducing new ”Business opportunities” are established in functioning and embedded category organizations. All areas suitable for competitive bidding are reviewed every 2 years. Many are even opened up to competition at least once a year. This is an increasing trend.

PREVIOUS ENERGY PERFORMANCE TENDERS

Östra Göinge council (2013)
Bostads AB Klockaren (2013)
Leksandsbostäder AB (2013)
Leksands council (2013)
Älvsbyns council (2012)
Älvsbyns fastigheter AB (2012)
Kalmar council (2011)

Mora council (2011)
Morastrand AB (2011)

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