In recent times, several trends have emerged which are paving the way forward for tenders and the way clients behave in decision-making processes. This, we believe will make for a new year’s revolution in 2013 and beyond.
For one thing, tenders have become more compliance-focussed. Some tenders seem to be based on price and little else making it difficult to differentiate your company. The client wants to compare apples with apples and dilute the offers down to a single number, and as long as the document ticks all the boxes, it will get through to the next round. Differentiation can be done though, you just need to know how to differentiate properly and not just promote all the usual positives about your business that everyone else also says they have (“we are a safe pair of hands”, “we have a quality team”, “we always put in 100% effort” and so on).
Another trend which we are seeing is a rise in the ’mega-tender’ where companies are spending more money than ever to make their tender bigger and better than the rest. Their presentations include animation, electronic fly-throughs, and a range of other bells and whistles to make the tender submission stand out.
Major projects have always been won via the tender process and over the past few years, have set the scene for contract procurement in other industries. Now we are seeing IT contracts, professional services firms (law, accounting etc) relying on tendering to gain new business. Also in the NFP and NGO sector, the submission process is becoming a necessary part of their funding and administration process. Organisations that once were awarded government funding as a matter of course, now have to compete against their fellow compatriots for a slice of the pie.
In other trends, major contractors working towards PPP tenders are being forced to split their efforts between the development of a physical tender as well as having to provide a series of presentations to support their progress on the tender. The client expects each candidate to present at several points along the way, sometimes to a panel requiring several days of preparation and delivery. The process requires juggling of resources and contributors as well as additional costs. The issue here is the fear of giving away the company’s IP before they have even won the job.
The move toward more governance in tendering is another trend forming particularly in the smaller bids. This involves strategic and peer reviews as tools for determining the eligibility of a company’s submission. Panels are becoming more and more a regular occurrence and we are being asked regularly to assist in the panel process.
The past year has seen the rise and plateau of the request for the electronic tender. This is a convenient way of submitting the documents especially for smaller and less complicated tenders. However, it’s not a trend that has taken off so perhaps the e-tender is not something we will see too much more of.
One things is certain and that is 2013 will see more changes and trends emerging in the tender space. To ensure you are well aware of what clients are looking for, you have to stay abreast of the issues that affect your industry sector. Keep your eyes and ears open and do your research.
Leann Webb