Today’s public procurement managers battle uncertain supply chains in a never-ending effort to acquire goods quickly. Just 21% of supply chain leaders say that they have a resilient process due to the significant challenges in procurement during the COVID-19 pandemic.
This trickle-down effect significantly impacts public procurement managers working for schools or government bodies. Regular disruptions can increase prices, stretch out OTD times, and create service gaps for public audiences and their families.
It’s critical to focus on current supply chain management strategies that will better withstand the tests of time.
Considerations for procurement strategies in supply chain management
Public procurement and the modern supply chain are inherently tied together. Multiple competing groups require a continuous give-and-take and a set of unique priorities capable of shaping final outcomes.
Research shows three competing needs requiring careful balance within public procurement:
- Commercial value: Ensuring that procured goods are the best price, the highest efficiency, and the most effective for the current application
- Regulatory compliance: Following all major procurement requirements for competition, transparency, equality, and compliance
- Social good: Procuring items that provide the best social good for the audience of the organization
All of these needs must remain balanced for the effective delivery of supply chain management.
Persist through complex supply chain management with public procurement strategies
The most efficient way to navigate changing U.S. supply chains is to reinforce your current tactics with modern procurement strategies.
Here are four strategies for effective supply chain management within public procurement.
1. Increase the length of your contracts
Sometimes the most efficient action that you can take in procurement is to leave well enough alone. If you have pre-existing procurement contracts with suppliers that serve your needs, it may be wise to extend them.
Extended procurement contracts may help you build better relationships with suppliers and increase your resiliency against disruption. That said, not all suppliers can accommodate extended contracts, leaving you with a single option: creating a new request for proposal (RFP).
Keep in mind that this may not serve you well over time, however. Traditional RFPs may incite bidding wars, draw out your OTD timeline, and be less efficient than cooperative contracts.
2. Order your procurement priorities
The three competing needs are all examples of procurement priorities. Only one category can take the lead; the others must follow behind. You need to determine how organizational priorities affect your supplier choice. For example, do you need commercial value or social good first? Where should regulatory compliance fall?
Traditional procurement processes require you to evaluate all bids through a prioritization rubric. However, if you opt for cooperative contracts, you can start hunting for suppliers that meet your criteria without having to evaluate individual bids.
3. Boost the visibility of your RFP
The more suppliers see your RFP, the more bids you’ll receive—and the more competitive your procurement options become. It’s critical to boost your RFP’s visibility and ensure that stiff competition increases your probability of success.
However, traditional RFPs are neither fast nor efficient at gaining visibility, especially when it comes to public organizations. It can take up to 192 days to manually process an RFP and up to 106 days to complete with the use of business software.
Cooperative contracts provide a more streamlined approach to public procurement. By browsing a selection of available solutions, you can sidestep your internal RFP process and leverage competitively solicited suppliers through organizations like Sourcewell.
4. Use cooperative contracts
Many procurement strategies in supply chain management begin and end with cooperative contracts. Not only can you save money, increase competition, and ensure compliance, but you can also streamline OTD dates for much-needed goods.
Procurement managers serving government bodies and educational institutions can use cooperative contracts almost immediately, regardless of their length of service or current procurement experience. With Sourcewell, you can start browsing cooperative contracts right after registering online.
How cooperative contracts support procurement strategies in supply chain management
Cooperative contracts can help public organizations manage procurement processes more effectively. These purchasing agreements are easily browsed online and accessible to smaller schools and governments.
They also continuously benefit the organizations that they serve. All three considerations of procurement are met:
- Commercial value: Cooperative contracts leverage economies of scale, meaning prices may be far lower than traditional supplier bids.
- Regulatory compliance: Cooperative contracts are competitively evaluated by other government organizations, meaning there is a higher likelihood that they will fit your specific regulatory requirements.
- Social good: Cooperative contracts unlock equipment that may be rare or hard to come by through traditional RFPs, especially for local governments.
If you’re interested in learning more about cooperative purchasing and its role in public procurement, Sourcewell can help. Check the eligibility requirements to see if you qualify for the cooperative contract program.
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