Market purchasing and structured tendering are vital activities in the effective management of most purchasing portfolios. For many categories, the number of highly qualified potential suppliers that could be included within a tender, particularly within a global supply context, can be very large. When this is the case we regard the potential suppliers as the Supply Market and apply Market Purchasing techniques to determine Market Price.
Vendigital's expertise in Market Purchasing has been instrumental in delivering consistently eye-catching results for our customers, either as one off tenders or within larger programmes of work. This is not just about cost reduction but about finding and putting buyers in touch with the best suppliers in the world.
Three elements are important within a Market Purchasing approach:
CREATE: Supplier Headhunting
Using our supplier headhunting expertise and resources which includes
access to experienced multilingual procurement specialists covering 15
business languages, Vendigital can help you to create an appropriate supply
marketplace for your category needs.
For an item with hundreds of potential suppliers, we will locate a representative
sample of the total marketplace to ensure that true Market Price is eventually
determined. For items with only a few potential suppliers in the world,
it is essential to find them all so that a liquid marketplace is established
i.e. a marketplace with multiple suppliers that are both viable and interested
in your business.
Through our continuous headhunting activities particularly in the manufacturing market, Vendigital has compiled extensive supplier databases, a network of overseas agents and specialist resources with language skills. With these resources, we can find the right suppliers and create the optimal supply market place for each tender conducted.
COMMUNICATE: eRFx; Contract Optimisation
Having identified the best potential suppliers and created the
marketplace it is essential that a level playing field is created. Each
supplier must
have, and know that they have, access to the same information at the same
time. Vendigital's leading eRFx platform supports simultaneous communications
with each potential supplier during the tender. It provides an efficient
method for the buyer to retain complete control and maintain detailed records
of all communications. Without this tool, when running tenders involving
larger numbers of potential suppliers, buyers risk inadvertently giving
each supplier a slightly different picture or omitting relevant information.
With effective and efficient communication with the Supply Market, the “shape” of the market can be determined. This allows our team, when necessary, to adjust the contract terms and structure to suit the marketplace and thus leading to the best possible result.
NEGOTIATE: Online Negotiations [e-auctions; reverse auctions;
value auctions; strategic negotiations]
Having communicated your needs and optimised the contract structure,
if the resultant market place is liquid, an online negotiation is the only
meaningful way to determine Market Price. If not liquid, Vendigital’s
team have years of experience in face-to-face or structured strategic negotiations
to ensure that the most appropriate supply option is achieved.
Online negotiations take a number of forms from the online reverse auction where a single parameter such as price is considered through to value auctions where multiple parameters such as payment terms, consignment stock, line-side delivery etc. can be negotiated simultaneously.
"The robustness of the processes used in the project were much greater than one normally associates with a purchasing exercise. It's no wonder that the results were so impressive."
Mr Schempp
Purchasing Manager
Forschner
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