Evaluating Tender Transparency in Procurement Transparency and Supplier Selection in Municipal Copier Procurement
Question
Task: How can municipalities improve Tender Transparency in Procurement processes while ensuring fair competition among suppliers?
Answer
Introduction
The case study involves a petition raised by copier’s suppliers Triple K Copier Company which has disputed the manner and approach taken to allocate and award the copy machine supply Tender Transparency in Procurement in favor of the Golden Copier Company. This has been a major concern due to the department requiring a combination of different copy machines which results in the requirement of over 40 combinations to select from falling under 4 financial categories.
With a large number of copier classifications, there is a wide scope for distributing the copy machine within the Tender Transparency in Procurement to multiple suppliers who are capable of delivering alternative combinations each delivering a unique advantage to the department (Nicholas, 2017). To make a clear verdict and defuse the petition it is critical to evaluate both suppliers’ arguments and develop a solution which favors the department but also ensures the most deserving or both suppliers are considered for the Tender Transparency in Procurement (Lewis, 2003).
Discussion
The main discussion arises with regard to the petition raised by the Triple K Copier Company which has raised a concern related to the Tender Transparency in Procurement credibility and transparency. This is due to the municipality having requested for various copier machines which resulting in multiple combinations falling under the prescribed budget. With multiple combinations being able to be developed for the Tender Transparency in Procurement the Triple K Copier Company has questioned the reason why a single supplier has been allocated the full Tender Transparency in Procurement despite other credible suppliers being available and offering similar combinations at the same price range (OECD, 2009).
With the concern related to transparency raised it's critical to investigate the situation by first evaluating the product requirements and supply arrangements after which a decision addressing each stakeholder need can be made keeping in mind each stakeholders concerns and interests are met. It is critical to keep in mind the situation and concern related to transparency has been raised on this petition thus it’s critical that the organizations and department image are also protected by handling the concern tentatively so as to avoid any negative publicity (Smith, 2017).
Purchasing Policies and Procedures
With the concern having been raised regarding supply Tender Transparency in Procurement transparency it has become important to evaluate the entire Tender Transparency in Procurementing process and evaluate the different products lines which must be categorized to determine the best brands fitting the specification of each product thus helping determine the most suitable supplier for each product category (Monczka, Handfield, Giunipero, & Patterson, 2015). With the concern having being escalated, the ballet box Tender Transparency in Procurementing systems must be eradicated and open Tender Transparency in Procurementing encouraged to promote transparency and supplier requests are being voiced in public to help determine the most suitable supplier.
Purchasing Effectiveness
To improve purchasing effectiveness the department would have to outline specific product specification they expect to secure after which applicants can be invited to bid forth supply. Its important specific requirement is mentioned so as to avoid competition and allow the organization focus just on the supplier capability to deliver the highest quality products at the lowest cost and within the given timeframe (Weele & Weele, 2005). Offering flexibility with requirements would complicate the Tender Transparency in Procurementing process making it harder to identify the suitable service provider.
Evaluation of Purchasing Processes
Purchase process must be limited to specific product specification but at the same time, it’s also important to set specific guideline linked to pricing. Tender Transparency in Procurements for the supply of products should not be selected due to being the lowest priced as thus does not always ensure the quality and long-term delivery and maintenance needs. Instead, price bracket needs to be secretly set by them or generation committee purchase committee and Tender Transparency in Procurementing companies falling under this bracket offered the Tender Transparency in Procurements. Overpriced and underpriced Tender Transparency in Procurements should than be automatically discarded (Weele A. , 2006).
Key Performance Measure for Purchasing
The two of the most important procedures for purchasing performance is timeliness and customer satisfaction (Weele A. , 2010). Another important factor that adheres to measuring the purchasing performance is the capacity of work, a complication of work, compliance, and cost savings.
Target Customer Analysis
It’s also imperative the department be clarified based on the user requirement. This is important since each department will have their specific copier requirement (Azevedo, 2014). It’s important to classify each office need and supply the suitable copier thus helping distribute the supply chain more evenly among suppliers.
Market Competitors
To maximize the benefits secured by the organization in terms of affordability and high-quality the Tender Transparency in Procurements to supply the different products and services must be publically announced (Aharoni, 2014). This can be done via Television, radio and the print media as well as on the social media which would help maximize the Tender Transparency in Procurement’s exposure and attract the maximum number of suppliers thus improving the terms and quality of products being supplied.
SWOT Analysis
Strengths:
Low overhead and fixed expenses, prime location, more suppliers, higher quality, wider verity, more brands, better distribution, higher quality after sales services
Weaknesses:
Higher variable costs for ingredients due to better quality, a larger number of suppliers to handle, after services management team and follow up, warrantee claim complications
Opportunities:
Capture the local delivery market with faster and cheaper delivery, attract more supplier, secure products at lower cost, and break supplier monopoly.
Threats:
Maintenance complication, new suppliers, unreliable suppliers all contribute towards Risk of failed after sales services and maintenance (Sarsby, 2016).
Conclusion
The report concludes that the independent hearing instructor has tremendous potential to enhance the Tender Transparency in Procurementing system. The company must emphasis on securing high-quality products and services while also keeping suppliers happy as well as ensuring after sales services are delivered. Certain factors may have resulted in the Tender Transparency in Procurementing system favoring a single supplier but due to their being a large number of copies to be suppliers there is scope distribute the supply of the products among different supplier that meet the supply chain requirements and guidelines.
This will help distribute the supply responsibility which will help encourage competition among the suppliers thus enhancing the quality of products being supplied. In addition to the quality of products, it will also help reducing the dependency on a single supplier to provide all products and services thus helping deliver further stability to the organization and improve efficiency. Time to time the company has come up with innovations in forms of products, proving that the capability of the company is still enormous. It’s important that the latest technologies be purchased so as to minimize replacement of equipment every 1-2years and help reduce the overall cost on the department.
References:
Aharoni, Y. (2014). Coalitions and Competition (Routledge Revivals): The Globalization of Professional Business Services. Routledge.
Azevedo, A. (2014). Integration of Data Mining in Business Intelligence Systems. Minho: IGI Global.
Lewis, H. (2003). Bids, Tender Transparency in Procurements & Proposals: Winning Business Through Best Practice. Sterling: Kogan Page Publishers.
Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). Purchasing and Supply Chain Management. Cengage Learning.
Nicholas, M. (2017). The Little Black Book of Decision Making: Making Complex Decisions with Confidence in a Fast-Moving World. John Wiley & Sons.
OECD. (2009). OECD Principles for Integrity in Public Procurement. OECD Publishing.
Sarsby, A. (2016). SWOT Analysis. London: Lulu.com.
Smith, J. N. (2017). Managing Bids, Tender Transparency in Procurements and Proposals: Introducing the Bid.Win.Deliver Framework. Universal-Publishers.
Weele, A. J. (2010). Purchasing and Supply Chain Management: Analysis, Strategy, Planning and Practice. London: Cengage Learning EMEA.
Weele, A. J., & Weele, A. J. (2005). Purchasing & Supply Chain Management: Analysis, Strategy, Planning and Practice. London: Cengage Learning EMEA.
Weele, A. J., & Weele1, A. J. (2005). Purchasing & Supply Chain Management: Analysis, Strategy, Planning and Practice. London: Cengage Learning EMEA.
