Understanding procurement from the buyer’s perspective helps businesses improve their bids and increase their chances of winning contracts. Here’s how the process typically works.
1. Identifying the Need
A public sector or corporate buyer first defines what they need, whether it’s IT services, software, or hardware solutions. This often involves internal discussions and budget approvals.
2. Market Research
The buyer researches available solutions and suppliers, sometimes issuing a Request for Information (RFI) to gauge interest and capabilities before proceeding to formal tendering.
3. Creating the Tender Document
The buyer drafts a formal Request for Proposal (RFP) or Invitation to Tender (ITT), outlining:
- Project scope and objectives
- Technical requirements
- Budget constraints
- Compliance and legal conditions
4. Publishing the Tender
Tenders are advertised on platforms like Contracts Finder, FindContracts, or TED. Buyers often hold briefings or Q&A sessions for interested suppliers.
5. Evaluating Bids
Bids are scored based on:
- Price and value for money
- Technical capability
- Company experience and track record
- Compliance with legal and financial requirements
6. Awarding the Contract
Once evaluations are complete, the buyer selects a winning supplier and begins contract negotiations. Unsuccessful bidders receive feedback to improve future submissions.
7. Contract Management and Performance Review
The supplier delivers the contract while the buyer monitors performance, ensuring service levels and compliance with agreed terms.
Understanding these stages allows businesses to tailor their bids effectively and align with buyer expectations, improving their chances of success.