Whether you are a landlord, managing agent, RMC or RTM company, the importance of securing services that offer value, capability and quality is paramount. From building contractors to safety consultants, accountancy to IT support, finding the right professional partners can often be challenging.
In this article, Gareth Rowlands, IT Director at JB Leitch discusses some of the fundamental elements of the procurement process that should be considered, and where applicable, adopted to ensure that the suppliers you choose offer the perfect fit.
Clear Objectives
Our suppliers and contractors are core links in our operational chains. We depend upon their reliability for our continuity. It may seem an obvious thing to say, but ensuring that you have a strategic and quantifiable understanding of your requirements is vital – its shapes the scope of services required, informs your brief or your tender and provides the metrics by which a preferred provider can be identified and provides the benchmarks against which success can be measured. Importantly, having clear objectives will unambiguously communicate your needs and mitigate potential misinterpretation – thus “separating the wheat from the chaffe” at the outset of the outsourcing process.
Identifying your supplier requirements may be relatively straightforward, or it may involve broader operational and strategic scoping across your business, GAP analysis or similar. Either way, the objective is the same – to provide as much structure, clarity, detail and context to your requirements specification as far as practically possible.
Finding Suppliers
Depending upon the scale and nature of the services to be contracted, the are multiple means by which your requirements can go to market. Just as the government provide a comprehensive range of approved and pre-qualified procurement frameworks for public bodies, various industry trade bodies will hold lists of approved and appropriately accredited or regulated suppliers. Direct advertising may not be necessary. With a little research, a pool of appropriate candidates may be identifiable relatively quickly.
There is then a question of selective you wish to be in the openness of your tender. It maybe that the ”three-way quote” approach is best suited to your needs, urgency and available resource. For more involved requirements you may wish to open the bid process to five, six or more potential suppliers, and require a pre-qualifying questionnaire, a bid document, and even a pitch presentation. The key is to manage expectations within the specification document. Tendering can be a costly and time-consuming exercise for you – and for the provider. It is fair to establish the extent of the competition process and assess your ability to evaluate each bid both rigorously and fairly against core criteria.
Identify Added Value
In addition to the functional specification and technical response provided, it is always advisable to seek the areas in which the potential provider can provide added value and benefit to your partnership. Many tenders or proposals offer “a personal and bespoke” service to clients, but this should be properly qualified.
For some, comparable experience and resource may suffice, however some providers will take a close look to see how they can not only deliver, but exceed expectation. Whether it is complimentary reporting, cost free consultation / account management or discounted fees, through to offers of training, co-development, or co-creation of innovative new approaches to delivery, the providers offering added value often prove to be the most attentive and truly client-focused partners.
Common Standards, Shared Values
It is a given that your prospective supplier can meet your technical requirements. However, you may wish to have the assurance that they meet your standards and values. If they are reflecting your organisation in a public, b2b or market facing domain, they will effectively become ambassadors for your brand. A good contractor / supplier relationship should seek to transcend the merely transactional. Consider the standards and accreditations a provider holds, or is working toward. Some may be mandatory (health and safety, financial conduct or service specific quality standards for example), do they reflect your own level of professional standing – and do they demonstrate a commitment to quality, improvement and responsible business practice?
Proven Ability
A proven track record can be a huge benefit. A supplier who can effectively hit the ground running, be familiar with your operational landscape and adapt quickly will be an advantage in terms of cost effectiveness, efficiency and less of a drain on your time. Seek to explore the comparable work or clients the provider has worked with, particularly via client testimonials, case studies or references. You may also wish to research online reviews, although these can be unfairly biased or even misleading on many unmoderated platforms.
It will also be important for you to understand the recency of their comparable experience. Taking IT as a prime example, you will want a provider that is ahead of the curve (in rapidly evolving environments) in terms of knowledge of operating systems, software developments, industry standards, integrations and functionality. A partner that is only familiar with a legacy system will be redundant straight away.
Evaluation & Winning Supplier Criteria
Evaluating supplier bids can be a daunting process, however a structured approach to bid evaluation not only provides a sound basis for appointment but evidence of a clear, objective and focused approach to meeting your organisation’s needs.
We often hear about appraising supplier proposals on the basis of cost and quality. It’s important to note that best value doesn’t always equate to the cheapest price. If one supplier is slightly more expensive, but the outputs are greater, or the turnaround times quicker, it may provide to be more cost effective in the long run. Cost should be evaluated along with an understanding of proposed service methodologies, processes and management of contract delivery.
As for quality, many of the elements touched upon throughout this article could be used as potential evaluation criteria. It will be up to each organisation to attach a level of priority to these (and other factors), which can then be weighted proportionately in terms of ranked or prioritised scoring.
The Format of Responses
When the evaluation methodology is set on this basis, it is important to try and share this with the tenderers within your requirements specification. In addition to providing your specific and detailed service requirements, indicative budget, timelines and expectations, you may explicitly ask for proposals to provide:
- A detailed methodology
- Cost schedule
- Referees
- Key policies and financial information
- Case studies
- Staff details reporting lines
- Added value
- Reporting, performance management & review
In Summary
Choosing the right supplier requires careful consideration, a structured approach and proportionate due diligence.
We hope this article provides some useful pointers and practical suggestions to help shape your thinking in the planning and award of contracts. Should you wish to discuss the article further please contact us: [email protected].
