There are a number of good reasons why businesses should tender. I could fill several pages of reasons but for the sake of brevity, I will limit it to three here:
- Ingenuity – if you don’t look for ideas or seek out alternate perspectives you are at best keeping pace with the market, not getting ahead of it. Suppliers need to be challenged and perform better when they have “to work “ for the business.
- Value for money – this is the obvious benefit of seeking quotes and offers from more than the usual suspects (fine as they may well be). If this was truly compelling however, more businesses would source more widely to get better outcomes.
- Governance – keeping suppliers and buyers on their toes is important. As purchasing budgets increase, it is increasingly important that expenditure is being targeted at enhancing a company’s competitive position. Well designed and thought through governance of expenditure keeps this objective in mind.
Keystone Procurement has developed the quick guide to tendering. It is a five step process that businesses of any size can use to ensure that they obtain value for money. It is primarily aimed at SMEs and start-ups. As time is precious and many businesses admit that they see the very prospect of tendering as a terrible drudge, our guide offers a quick practical way of obtaining most of the benefits of a more bureaucratic process for a relatively modest amount of time and effort. Applied correctly, businesses will save money, get better outcomes and achieve greater traceability of the expenditure.
Please let me know how you get on using this template. If you would like to discuss how Keystone Procurement can assist your business get in touch at any stage.
Note: Keystone Procurement advocates international best practice for commercial strategy including tendering. Businesses are welcome to use the guide as they see fit but should be aware of its limitations and exercise good judgement as the value of the contracts they run through this process increase. Any contract that has the potential to materially impact the fortunes of a business (i.e. it is not routine) should be accorded an appropriate level of reflection, due diligence and endeavour.