Where You Fit In The Suplly Chain is Important in Tender Process

To know where you fit in the supply chain is so important. Now, supply chains has been a relative buzzword over the course of the last five to 10 years.

the supply chainYour real key, your real fundamental success through to the whole tendering process firstly lies in your ability to understand the theory of supply chains. But more importantly, it’s really starting to understand how the theory of supply chains applies to your individual business and we’ll further explain.

What is a supply chain? Now, the textbook definition of a supply chain is that a supply chain consists of all parties involved directly or indirectly in fulfilling a customer request. Now, if you start to think about that, as part of the Queensland Government, we are one of the largest customers here within the state. So on average, throughout the year, our agencies, and our Departments will spend billions of dollars each and every year in
actually procuring and acquiring goods and services. They’ll also be spending monies that they’re required to get some of our projects off the ground. Check what wikipedia said about supply chain here: https://en.wikipedia.org/wiki/Supply_chain

So effectively, we’re always looking at bringing organisations in as part of the government supply chain. Now what this means for each and every one of you is that as a supplier, this means there are many, many opportunities to be had on an annual basis. And the opportunities exist for either, through winning projects directly through tendering, or maybe even looking at opportunities outside where you might be able to may subcontract to the winning organisation that has won the tender, as well as maybe even looking at supplying the winning organisation that has actually won the tender. And we will further explain that.

Now, before we move further and talk more about supply chains, you really have to firstly understand what the key drivers are for the Government whenever we go out to tender. So when the government goes out to tender, to procure those goods and services to meet our objectives, what are the key things we’re trying to achieve – and effectively there’s three key objectives – so the first key objective, typically, for most government procurement is that we’re looking at doing business with one key supplier that could deliver to our needs. Now why the government typically only looks at doing business with one key supplier, as opposed to multiple suppliers, is that from a contract management perspective it just makes it nice and simple. So our relationship is with one company, our contractual relationship is with only that one company (NH).

The introduction related to this post can you find here Tendering for Government Business

Published by GM Chin

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