BravoSolution Real World Procurement – Driving Value from your Sourcing Process

Last week saw the latest BravoSolution Real World Procurement session with Guy Allen leading on “Driving Value from your Sourcing Process”. One of his central points during his presentation was the importance of maintaining competition through the sourcing process. Often, as we get closer to contract, we reduce the number of potential suppliers in the field, perhaps via a pre-qualification process, then some sort of tender or proposal, then perhaps final negotiations with just one or two suppliers.

Guy made the point that the competitive pressure is directly related to how likely the supplier thinks they are to win the contract, and that many organisations are too quick to reduce bidder numbers. That stimulated some good debate, because as the delegates pointed out, you can’t realistically keep too many suppliers in the process for too long. The burden of effort on the buyer and indeed on the supplier means we do have to be sensible and pragmatic.

However, we think Guy is correct in that buyers are sometimes too quick to tell suppliers they are a preferred bidder, for instance. At that point, most of your negotiating leverage is gone!  I’ve also seen cases where a buyer takes just two suppliers through to final proposal, at which point one drops out, leaving you very exposed. (We’ve seen this happening in some controversial public sector contracts too in recent times.)

There are other ways of maintaining competition and competitive pressure as well, as Guy explained. He also covered other aspects of sourcing, including an overview of “market informed sourcing” (optimisation) and the use of auctions. All in all, another useful session for practitioners in the Real World Procurement series; you can download the slides now and if you did attend, don’t forget to take the quiz if you are interested in winning the BravoSolution RWP scholarship.

And on April 27th, Guy will be leading two webinars on the same topic, so if you missed the live performance, you can hear the key details then – they are live sessions too, we should say, so it is also a chance to throw some difficult questions at Mr Allen! Register here for the webinars at 11 noon UK time (for Europeans) and for our US friends primarily, later that day at 11am US East Coast / 8 am West Coast time.

Then we have the next live London Real World Procurement sessions which you can book now. Guy  is talking about The Good, Bad, and Ugly of S2P Implementation on May 25th then I will be leading the September 14th session on Next Generation Supplier Management.

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