Tag: competitive advantage

Tendering across Europe – How to step out of the UK

With £714 billion being spent on the public sector in the UK in 2014 you may feel that there is plenty of business to go around. However, if you are considering broadening your options or want to look further afield you could consider bidding for tenders across the European Union.

The European Union was created on the basis of it being a single market which includes the free movement of goods, capital, people and services across all member states. In practice this means that a UK company should have an equal chance of winning a tender in a different EU member state as the local companies and there should be no barrier to intra-EU trade. We often hear of dissatisfaction that local contracts in the UK have been awarded to non-local suppliers and so this could be considered the other side of that coin.

While it may seem like it is easy to go for these types of opportunities there are certain things that need to be considered before taking the leap! All the points made by my colleague Gemma on this blog: How SMEs can break into the public sector will apply but there will be other aspects that will need to be considered as well.

Continue reading “Tendering across Europe – How to step out of the UK”

New Model for Government Procurement

The government faces the challenge of making progress on its new procurement operational model while working with departments’ existing contracts, industry experts said.

At the end of 2010, John Collington of the Efficiency Reform Group (ERG), announced that his team aimed to transform the way government buys commonly used goods and services through category management, standard specification and aggregation of spend, to save 25% over 4years.

The 9 categories to begin this central procurement model are:

Energy, office supplies and professional services as the first three categories to be undertaken by March 2011.

Travel, fleet and telecoms will be addressed by June 2011

IT commodities, print management and advertising and media will be tackled by September 2011.

With March 2011 fast approaching, it is the wise supplier who keeps abreast of developments in this area

A spokesman for Price Waterhouse Coopers said, “Some contracts could be terminated, others will have to run their course,” he said. “The costs of ending contracts could be more inefficient than keeping them alive. There could be many different deals kept running when less have been identified as needed. It will take longer than nine months to get all nine areas tackled.”

The Cabinet Office declined to comment on how it would end multiple contracts with existing suppliers in individual Whitehall departments in order to enable the introduction of a centralised model.

The launch of specifications for sustainable procurement and collaborative working offers a powerful strategic weapon for purchasers and suppliers

The launch of specifications for sustainable procurement and collaborative working offers a powerful tool for suppliers and purchasers.   Lord Jones, former director-general of the CBI, believes they should form part of any organisation’s strategic weaponry. UK businesses operate in a highly competitive global environment where agility, efficiency and innovation are the watchwords of success and standardisation weaponry.

Suppliers that comply with standards often have a competitive advantage as buyers will often use compliance to choose between comparable suppliers. Standardisation also promotes interoperability along the supply chain and provides the competitive edge that is necessary for effective worldwide trading.

BS 8903:2010 launched in Summer 2010 set out the principles and framework for sustainable procurement and also provides practical advice on the implementation of the framework practices. It has been developed by participants drawn from many sources including the private sector, pressure groups and the public sector.

BS 1100-1:2010, published October 2010, was developed with input from many industries and its longer term objective is to move to an ISO standard. It provides a strategic framework to improve collaborative relationships and explores partner selection, working together, value creation and relationship maturity.

With an increasing emphasis from buyers on this area, it is the wise supplier that will educate themselves on these standards to give themselves the competitive edge, that Lord Digby refers to.

To Bid or Not to Bid

Selecting the right contracts to go for is critical to the growth of your business. So often we waste a huge amount of time responding to tenders we are destined never to win. It can be due to a lack of resources, limited experience or it simply just doesn’t fit with your core business.

Here’s a quick and effective checklist for deciding whether you should go for a contract or not.

Step 1
Rank your response from 1 to 5, with 1 as the most negative and 5 as the most positive answer. If the total score is below 20, you should seriously consider whether it is worth proceeding to Step 2.

1. Were we aware of the opportunity before it was advertised?
2. Do we know the decision-maker(s)?
3. Do we have a significant technical or other competitive advantage?
4. Have we done an effective job of pre-selling for this project?
5. Do we have a champion in-house who is motivated to win?
6. Have we allowed enough time for preparing the proposal?

Step 2
Answer yes or no to the following Qualitative Factors:

1. Will our price be competitive?
2. Does the opportunity match our target market area and services?
3. Does the project present us with an unusual opportunity to break into a new market?
4. Will the submittal effort be proportional with the expected fee?
5. Is the project consistent with our minimum/maximum project size objectives?
6. Can we make a profit doing this project?
7. If we cannot make a profit, are there any prevailing reasons to want the project?
8. Do we have qualified staff available to perform the work?
9. Do we have the staff and time available to prepare a quality proposal?
10. Do we have the track record/experience for the project?

If you have answered ‘no’ to more than two of these questions, you should seriously consider whether this is the right contract for you.

%d bloggers like this: