While the majority of contracts are won by Tier 1 firms, the majority of work is actually delivered by Tiers 3 and below. A recent Department for Business, Information and Skills (BIS) sponsored report concluded that on all projects, typically 4 or 5 sub-contractors are focused at Tier 2, but the actual delivery of these projects is undertaken by a disaggregated Tier 3 supply chain.
2 key benefits for construction firms
Adopting eTendering provides easy-to-access tools that help firms maximise their margin by increasing competition when buying products and services or sub-tendering elements of their projects.
Automating key parts of the procurement process reduces overhead and makes bid evaluation easier. With a next-generation system like NexProcureLite you don”t need extensive training to set-up online casino tenders and run procurement processes. A good system is intuitive and user-friendly, meaning that non-procurement staff to run tenders.
eTendering also provides a way to grow your supplier pool and increased competition while monitoring external spend and keeping an eye on key procurement metrics and performance against previous projects and/or industry benchmarks.
Managing complex sub-tendering situations
eTendering is a highly effective way to manage these complex supply chains with multiple tiers of suppliers. Additionally, the fragmented, sub-contracted, on-site nature of construction demands a light, flexible, easy-to-use solution. Multi-site, temporary and/or complex organisational structures lend themselves to flexible eTendering solutions rather than legacy eProcurement platforms. Agility is key.
eTendering, risk management and supply chain communication
eTendering can also play a strong role in risk mitigation and business continuity management (BCM) strategies. In terms of BCM, firms need to identify critical suppliers and to mitigate their exposure. eTendering systems make it easy to keep track of key suppliers and to keep the organisation’s supply chain exposure under review.
eTendering promotes accountability, transparency and compliance. It provides a secure history of every tender. In terms of governance and compliance, eTendering makes it straightforward to enforce processes and workflows. Tender procedures and policies can be configured into the solution so that all procurement staff can only operate within organisationally approved processes. In addition, where responsible sourcing is important, eTendering systems simplify the process of keeping track of supplier credentials, and where and how they source materials.