How we negotiate value for money.
When leading on a procurement exercise ahead of contract award we need to be satisfied that we obtain best value for money. We go through a stringent and demanding series of tests and negotiations with the suppliers in order to achieve this.
If you have ever wondered how this is done please check this list:
- Checking the last price paid for the item
- Checking whether the product has been bought previously for one of our clients (including from an alternative supplier).
- Ensuring that any collaboration opportunities are exploited e.g. standardisation across departments/clients.
- Encouraging competition, so that competitive prices are obtained from alternative suppliers.
- Utilising national frameworks or deals already negotiated with SoEPS Strategic Procurement Partners.
- Benchmarking prices using the tool and links with other procurement organisations that they have access to.
- Challenging the supplier if a lower price has previously been paid.
- Understanding with suppliers whether there are any volume or commitment based discounts which can influence their offer. What is the minimum order quantity to ensure free delivery?
- Ensuring that whole lifetime costs for equipment are taken in to account, including agreeing prices for options that may subsequently be taken up during the contract period.
- Agreeing rate cards for support that may later be required but at the time of award quantities are unknown.
- Ensuring that the specification of requirements details the expectation for the preferred supplier so their offer includes all associated
- Ensuring that NHS Terms and Condition’s govern the contract.
This all takes time and the negotiation power of SoEPS is significantly reduced if the deadline for implementing the new contract is fast approaching. It is with this in mind that the earlier you engage with SoEPS to lead on your procurement requirements, the better value will be obtained.
Therefore, please link with your Procurement Client lead as soon as a new procurement is planned.