#9 – Bring Clarity to Your Requirements
Clearly written specifications and/or statement of desired outcomes will add value to your procurements in two ways. Firstly bidders are more likely to self qualify themselves before responding to your request which will result in better quality responses to your request. Secondly it is probable that competition for your business will increase as a result of a clearly written request for goods or services. Suppliers will offer more competitive pricing when they understand exactly what is required.
So what constitutes clarity in a request to supply?
Specifications that clearly answer the questions of What, Where and When are most important to provide to suppliers. Background information as to Why the request is made is useful information to provide as well. Asking the respondent to specify How they will fulfill your request and stating this as a component of your response appraisal will be helpful as well.
What if the What (product) in the requirement is not known (to you)?
This situation calls for clarity in the expression of a desired outcome. For example, you may desire banking services that integrate with your general ledger or you may wish to reduce energy consumption and building operating costs. A clear statement of desired goals with clearly weighted priorities for the goals and the cost of achieving them will provide you with better and more competitive offers than you might otherwise receive.
How important is clarity?
After several years of litigation before 3 courts on February 12 the Supreme Court of Canada ruled in a 5/4 split decision that an ambiguous exclusion clause did not apply in the case between Tercon Constructors and the Province of BC. Read the decision: http://scc.lexum.umontreal.ca/en/2010/2010scc4/2010scc4.html Clarity is extremely important.
Other Posts in the series: How to Add Value to Your Procurements
• Be Proactive
• Analyze what is required – bring clarity to the specification
• Understand the supply chain
• Align procurement strategies with corporate strategies
• Apply the highest standard of ethics
• Use the right tool for the job
• Plan contract management before there is a contract
• Learn from what was done
• Mitigate procurement risks
• Utilize the skills of supply management professionals
Over the coming year, Rusty Joerin, guest blogger, will expand on the above. Your comments are welcomed.
Rusty James Joerin, C.P.P. is a Supply Chain Management Professional and accredited by the Purchasing Management Association of Canada as a Certified Professional Purchaser. He offers procurement services primarily to public sector organizations that do not have a professional supply manager on staff and provides additional capacity to assist with project related supply for those organizations with purchasing specialists on staff.
Information about his experience and qualifications may be found at: www.woodsgift.com
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