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Government procurement is often managed through Tendering process for the supply of products, or services. The whole process is meant to create a fair ground for everyone, create transparency and probity and at the same time create sufficient competition for efficient procurement. Many organizations do not know how to deal with public sector procurement because it is so rule bound and the selling there is almost faceless. |
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Knowing what public sector clients want from a supplier is sometimes difficult to establish at there is very little interaction with the client during the initial phases of the sales cycle. This is very different from the private sector clients. Even understanding the jargon and tender process can be tedious. |
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Click here to get tips on effective public sector tendering |
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The following Simple tips will provide a simple guide to help you sell more effectively and efficiently to the public sector buyer. |
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Create Large Sales Funnel |
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Due to large competition and the rule based faceless selection process, creation of large sales funnel is very important because the success rate of funnel conversion in to confirmed sales is low. |
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The above diagram shows structure of a typical sales funnel and it is important to focus on creation of large sales funnel and also on conversion of funnel into confirmed business |
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Efficient PQQ process |
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PQQ submission involves filling same information again and again in multiple documents so much so that it leaves one wonder why does the government not keep all the information at one place and take it from there. This indeed could be a good idea, but the government is not that intelligent and that is why everyone is forced to repeat the same information in all documents. Every PQQ has around 80% of information which is repetitive and that does not involve lot of knowledge and intelligence to fulfill. Typically organizations have same group responsible to respond to all RFP/RFQ and that is why they end up spending valuable resources in low end repetitive work. It makes a lot of sense to use cost effective resource for this work. |
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Please click here to know how we bring efficiency in your tendering process |
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Focus on Conversion rather than submission |
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Public sector clients do not choose on price alone. You must establish superior value. This superior value is via technical, managerial, quality or service differentiators backed up with tangible evidence. Where is your proof that you have provided value for money and your existing clients have not chosen you on price alone? Do you ask why your clients use your services? Public sector tenders focus at the quality and price weighting detailed in the specification. If you do not show best value, you are forcing your clients to choose on price alone. That is why there are weight assigned to different aspects and in PQQ it is the history of the vendor that is being verified. That is why you should focus on writing your history right rather than submitting the history many times to the clients. |
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Analyze Loss and improve the content |
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One good thing about the PSU PQQ is that the results are transparent and you get the evaluation in a transparent manner. In this way it provides ample opportunity to analyze where are the short falls. In most cases, it is not the capability of the organization, but the manner of putting that in the PQQ which wins or looses it. Once analyzed there should be a process which does not repeat the same. |
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Show Value for Money |
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Value for money is the key word for any PQQ evaluation. Some of the important aspects that a PQQ evaluates are following |
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Safe Vendor |
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You must show that you are a safe choice as public sector clients like risk free suppliers and the more you can assure the Public Sector that your company can mitigate identified risks upfront, the more likely you are to be selected. This is demonstrated in the unpublished ‘20% rule' whereby public sector clients benchmark supplier financial capacity to deliver the project against the annual contract value you are trying to win, versus your annual company turnover. The more you go above 20% rule the less likely you are to be awarded the contract, unless you can prove that you have successfully delivered similar size contracts and have built in capacity to deliver their project. |
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Good and capable Partner |
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You must demonstrate that you are a good partner, working in partnership with your clients, having expert knowledge, have previously shown creative and innovative ideas with your existing clients – you must back this up with factual evidence. Possessing externally audited quality processes rather than saying you have good internal policies scores more points with public sector clients. |
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