The CIPS Procurement Cycle Part 2: Pre-Procurement to Tendering (Copyright - CIPS)

With the foundation laid in defining business needs and strategy development, procurement professionals move into the practical stages of pre-procurement and tendering. This part will explore pre-market testing, documentation development, and supplier selection.

Step 4: Pre-Procurement Market Testing

• Explanation: Pre-procurement market testing helps refine the procurement approach by engaging potential suppliers to assess their interest and capability.
• Example: A pharmaceutical company planning to source specialized chemicals conducts pre-market engagement to gather insights and ensure supplier readiness.
• Pro Tip: Use tools like RFIs (Requests for Information) to gain early insights.

Step 5: Develop Documentation and Detailed Specifications

• Overview: This step involves preparing comprehensive procurement documents, including detailed specifications and evaluation criteria.
• Real-Life Example: A government agency drafts an RFP for a major construction project, detailing compliance requirements and submission guidelines.
• Best Practice: Include clear, transparent instructions to attract quality responses.

Step 6: Supplier Selection to Participate in Tender

• Explanation: This phase involves shortlisting suppliers who meet the criteria for participating in the tender. Proper selection ensures that only capable suppliers are invited to bid.
• Case Study Insight: A public sector body pre-qualifies contractors for infrastructure projects, streamlining the process and improving the quality of bids.
• Best Practice: Maintain transparency to build trust with suppliers.

Step 7: Issue Tender Documents

• Details: The formal issuance of RFPs or RFQs marks the start of the bidding process. Tender documents should be detailed, with clear timelines and submission requirements.
• Example: A logistics firm issues an RFP for a multi-year transportation contract, specifying service expectations and delivery schedules.
• Key Consideration: Comprehensive, clear tender documents reduce supplier questions and improve bid quality.

Takeaway Summary Pre-market testing, detailed documentation, and a transparent supplier selection process are essential to successful tendering and supplier engagement. These steps ensure procurement is competitive and aligned with strategic objectives.

Follow the “BEYOND BUYING” series as we continue exploring critical procurement practices and insights.

If you’re a professional or student looking to deepen your knowledge in procurement or need guidance on CIPS certifications, I’m here to assist. Feel free to reach out as we embark on this journey together!