Procurement and supply management involves buying the goods and services that enable an organisation to operate in a profitable and ethical manner. Procurement is often responsible for up to 70% of companies’ revenue, so small reductions in costs can have a huge impact on profits. (CIPS).
Procurement procedures and processes vary between organisations, with factors such as delivery time frames, product quality and profit margins being a major consideration in the procurement cycle.
The procurement procedure starts with the procurement department attaining relevant suppliers and agreeing terms to achieve the best possible purchase cost price for the business. When a business has a requirement for a specific product or service it initiates requests for proposals (RFP), either through direct negotiation or a head-to-head auction.
Whilst Procurement can often feel very ‘public sector’ focused (because legislation defines how the public sector purchase) there are many common processes even though private sector businesses do not have to follow procurement rules within a legal framework.
G-Cloud is a very common route for public sector organisations to procure new client hosted software. The Digital Marketplace, and all the frameworks included in it, is managed by Crown Commercial Service (CCS). CCS is an executive agency and trading fund of the Cabinet Office of the UK Government. Their role is to improve the government’s commercial and procurement activity. The framework was first open in 2012 and is now in its 12th iteration – G-Cloud 12.
G-Cloud works just like a catalogue of suppliers with their capabilities and price lists available online, buyers can shortlist and then make contract awards through G-Cloud as approved suppliers to the public sector.
Our advice is simple – procurement processes add huge value to the system selection process for HR and payroll technology – work with your procurement team as partners or contact us if you would like our support as your pre procurement partner.
This blog has been written by James Proctor, Director of Consulting & Services at Phase 3.