Whether it’s your first school procurement or one of many, there are a few best practices to consider. Below are the 4 C’s of running a successful tender. We’ll use a school cleaning tender as an example. 1. Credibility Before launching your tender (i.e. RFQ or RFP) and inviting suppliers to bid, your intention must be to award a bid. Otherwise, you are wasting everyone’s time—including your own. Suppliers remember cancelled tenders and are less likely to provide a quote next time. So, get your ducks in the row and secure the budget and get the management mandate upfront.
The procurement function provides organisations of every kind a strategic means of sourcing quality products and outstanding suppliers. Not only that, it also plays a pivotal role in helping them stretch the Rand, so they get the most value from their suppliers. As the world slowly begins to emerge from the global pandemic, the function of procurement will play a determining factor in how well organisations will come out from it. So why does, procurement remain a low priority when determining annual school budgets and why are South African schools late to the procurement game? Procurement Is A Smaller Line
Not only does the average school procure from suppliers they have worked with the previous year but most take the first bid offered to them. Whether you’re pleased with your supplier, are too shy to negotiate, or simply too busy—taking the first price offered is likely costing you. School budgets are tighter than ever so these price negotiation techniques can help. Never Accept The First Quote Even if the supplier you’ve considered has the lowest price and highest quality services, just asking for a discount almost always generates a 10% to 15% price reduction! Why? Respectfully, the average supplier considers schools to
In a post-Covid era, revenues are down and schools are under increased pressure to reduce their costs. Fundraising attempts have been exhausted and cutting salaries only makes a dent. Not to mention that teachers are already overworked and underpaid. Creating a procurement plan for a school or district can cut third-party costs by an average of 25%!