According to the National Outsourcing Association of the UK, over one in four outsourcing agreements don’t meet the expectations of the client and a quarter of all relationships fail in any given two year period. That’s a pretty shocking statistic for businesses that now see the outsourcing of services to specialist suppliers as the norm.
The past five years has seen extraordinary growth in the use of framework agreements by procurement in both the public and private sectors and currently represent around 45% of procurements in the UK.
This growth is speculated to be explained through public sector spending cuts and the need for local authorities to account for spend and to seek value. But are these frameworks offering a positive and negative value to the market?
eXceeding are proud to announce that they now able to supply consultancy services to the UK public sector via the Crown Commercial Services (CCS) Frameworks, in partnership with Bramble Hub.
These services include:
It does feel that Social Media is currently being inundated with “Top Tips” and “Main Pitfalls” articles and blogs.
Unlike the “You won’t believe what happens next…” articles which are also invading social media, like an evacuation scene out of a 90’s disaster movie, these articles do actually hold some helpful tips. The issue I have is with these articles, is that the same top tips are being regurgitated and they are not all relevant to the changing environment of tenders and the OJEU regulations.
Every October back in my primary school I would become obsessed with playing conkers.
The game of conkers would consist of finding a conker and putting it on a piece of string. You would then find some else that has done the same with their conker and they then take turns hitting each other's conker using their own. One player lets the conker dangle on the full length of the string while the other player swings their conker and hits. To win you need to break the other person’s conker off the string.
I was working on a tender to supply a Government funded organisation which had an acronym of COCH.
The Area Manager that I was supporting on this project decided that it would be best if they dealt with the Key Personnel and the presentation elements. The completion of this work came ‘down to the wire’ and despite the numerous offers, our client did not find time to ask us or someone to review their work.
Improving bottom-line performance is not only achieved by increasing sales revenues, but more by reducing existing business expenditure, which is all net profit.
One strategy to deliver both outcomes is procurement outsourcing or selective outsourcing where you seek guidance on strategy or a single procurement event. Outsourced procurement focuses on re-designing business processes in order to radically improve operational performance. Procurement outsourcing is a tried and tested approach that can unlock significant unrealised savings and value streams.
It is becoming apparent that tendering is the most common way for companies to win new work and to renew current contracts, often key to the businesses profitability and occasionally essential for the continuation!
Majority of companies that are responding to tenders on a regular basis should have a Bid Library, but if they do are the libraries being utilised to their fully potential?
To clarify, when I say Bid Library, I am referring to repository of documents and standard answers to questions that regularly appear in Tenders and Proposals. Companies will have different names for this repository, but I tend to stick to the term Bid Library as my MD would not allow The Bidfather, Bid Club or Tenders of Gloom.
We came across a useful report last week, which we thought we’d share.
According to a survey of 532 organizations from across 68 countries and 14 industry sectors, conducted by the Business Continuity Institute (BCI), supported by the Zurich Insurance Group. “outsourcing failure is now a significant cause of supply chain disruption.”