“The collaborative efforts of any workforce make up an essential part of any procurement success. Every time a job requires procurement processes; a collaborative approach should be always be created to help achieve much more.”
In general, procurement in the public sector is predominantly resilient as the National Health Service (NHS) budgets continue to increase alongside the digital transformation program led by the pan-government keeping a high IT expenditure. And with capital developments like Thames Tideway, HS2, and Heathrow extension, the construction activities in the public sector can be said to be healthy.
In the public sector, a collaborative approach to procurement works plenty. Although the cloud around Brexit continues to linger, it is creating a doubt that is undeniably hindering the public procurement sector. Some procurement contracts may be lucky to get project extensions. But even with the delay, investment remains strong, and there is plenty of work requiring completion.
Over the last decade, the approach businesses are taking in securing these projects is, however, changing substantially. More than ever before, an essential condition for these businesses is adaptability and having a balanced workforce. These conditions offer a productive pipeline of activity that inspires growth, irrespective of the budget and contract constrictions. The present time supports the use of Collaborative workforce that allows businesses function together to earn mutually valuable rewards.
Collaboration is particularly prevalent amongst suppliers; who dread missing out on killer frameworks or massive opportunities to expand. With the rise of innovative processes and evolving technology, a lot of considerations come into play. Some concerns like Blockchain featuring the potential to transform the mechanism of supply chain transactions and Artificial Intelligence (AI) would have massive effects on the whole e-commerce process.
Creating a partnership with other operators alongside complimentary services for ad-hoc or official basis can offer firms the abilities required to own a better stake at success, deprived of any additional or overheads provision. Suppliers partnering to form formal consortia or submit joint bids can aid Small and Medium-Sized Enterprises (SMEs) go above their regular deals into accessing massive contracts they would generally consider significant or above their scope. Similar observations can be said for purchasers. They can team up with one or more organisations to issue a joint contract that would boost the economies of scale for both sides.
The creation of a good working relationship and aligned goals to be achieved is essential as well. Various dynamic purchasing systems and framework agreements have helped catalyse and facilitate collaborative procurement in the past few years. But these models are yet to replace “standalone” procurements. A directional growth, nevertheless, advocates even more public procurement will be executed using Deposit Protection Service (DPS) or multi-buyer frameworks soon. A perfect example is Proactis ‘G-Cloud 11 framework’ that is open for usage in the entire UK public sector and now a key routes option for buyers in procuring listed services.
The NHS is explicitly moving to make the most of collaborative procurement through a new central purchasing system, as stated in their Long-Term Strategy. It is this effort centralisation that would help in reducing the administrative requirements for all buyers. The outcomes are expected to cut cost and increase money value, both of which are key to publicly funded acquisition.
DPS and Multi-buyer frameworks provide suppliers with a vast prospect of accessing workstreams from several purchasing organisations in place of one. DPS and Multi-buyer frameworks also deliver the successful theoretical result and gaining multiple contracts over an arrangement duration. Suppliers are only required to prove their suitability for bids once, after which any “call off” competitors under these arrangements are rationalized. These thereby offers similar admin savings for buyers to benefit as well.
The primary key for suppliers is not to miss the prospect window of getting involved with a framework. The best approach for suppliers is to gain position on DPS through its duration. Various observations show general drop in the number of contract notices being advertised yearly. This drop does not imply a decrease in procurement activity, but a reduction in several of them being classified under DPS and frameworks. Indeed, in accordance to recent report by a Government Institute, the total public procurement spending has witnessed a steady upward trend over the last few years, with the total sum of awarded contracts from the government amounts to £248 billion in 2017/18.
The use of Collaborative workforce aids to ease the various problem facing organisations already handling several myriads of challenges when it comes to either acquiring or pitching for contracts. The best part is companies across the nation are now pooling their efforts together as the trend accelerates due to better government policies towards digital transformation. More and more back-office processes and frontline services are facing proper rationalisation alongside more procurement function as a significant element.
Collaborative work is an ongoing and significant evolution directed towards transforming travel for public procurement. There are still a considerable number of unexploited prospects available if you consider going down this path. Working collaboratively is a consideration worth giving a thought for your next tender.