Competitive Tender Processes – Critical for Costs Savings
The role of a facilities manager is varied, and that’s putting it mildly. Juggling everything from security, through to ongoing maintenance and emergency preparedness is enough to keep anyone on their toes. But although the tasks facing facilities managers are many and varied, the common thread running through them is that great facilities management results from the cost-effective acquisition of a wide range of supply inputs.
These demands are starting to see facilities managers turning to specialised e-Procurement toolsets. More than simply shifting a once-manual process online, these toolsets are increasingly being used to achieve better outcomes, more efficiently.
Organisations understand that specialised e-Procurement toolsets deliver instant process efficiencies. But there is also a growing awareness of the better outcomes achieved through the increased competition resulting from casting a wider digital net when going to market.
Proof of this can be seen within the very cost-conscious local government sector, with a key exemplar being Local Government Procurement (LGP) , the preferred provider of procurement services for the local government sector in New South Wales. Established in 2006, LGP negotiates umbrella-style supply contracts for its councils, saving them hundreds of millions of dollars in direct expenditure on the goods and services themselves, as well as delivering significant indirect savings related to the procurement process itself.
LGP uses a portfolio of online procurement tools to support councils, as well as their own business. In particular, they use a web-based e-Procurement portal from TenderLink to publish tenders, manage the tendering process itself and evaluate bid responses – all online.
When publishing a public tender notice using their TenderLink portal, LGP is assured of advertising their notice to a ready-made supplier audience of 30,000+ suppliers, categorised across 63 different industry categories, thus ensuring the most competitive bid responses.
Casting as wide a net as possible, as quickly as possible, through the use of e-Procurement toolsets is a proven way to lower costs and increase efficiency. With their adoption, facilities managers can then concentrate on catching the many balls they already have in the air, rather than having to worry about the outdated manual tender process introducing a few new ones.