This category is very popular to put through an Online Negotiation Event and it is normally the specifications which let this down. Either there are simply no defined specifications or what exists is incorrect or out of date. It is worth considering index linking within this category in order to help prevent the risk. Even though this is ‘just’ packaging, please do not underestimate the importance of a correct definition. If it is corrugated boxes for example; How many plies? What is the thickness of each layer? What type of fluting is used? Is it glued or stitched? Does it need to be printed? Is it sealed with paper or plastic tape? Is new tooling required? etc…
The liquidity in this category tends to be very high and there are nearly always local players and large national and international companies. Make sure that potential suppliers have been well vetted and the goods are of a high enough standard and match your needs. The key to ensuring everyone is quoting like-for-like and to your current needs is to make sure that all interested parties have samples. This might not be feasible at the start of the process with many suppliers involved, but you could send samples out to the suppliers who are the most interesting or after the Event to those in top positions.
Once again, the first step is to look at samples from the top suppliers before moving forward with your final choice. Ensure your suppliers are aware of how to use the eSourcing software to combat any preconceived notions about Reverse Auctions.
Another possibility is Value Engineering. As part of this process you can create some alternative Lots where the suppliers can quote for packaging which they feel would be fit for purpose, or you could implement a clause in the agreement around gain share opportunities for the suppliers part in value engineering. A suggestion here could be a 50% gain share of the savings in the first year as an encouragement to the supplier and to pay for their design work but after that you should receive 100% of the cost down.
Market Dojo offers a wide range of capabilities that help procurement professionals get the most out of their sourcing activities with easy to use and intuitive solutions. You can get started on your packaging tender straight away with our ‘Pay as you Go’ plans that start at as little as £500. Designed by procurement specialists, our solutions aim to help you centralise your information and negotiate the best value for your goods and services. Whether you looking to run a simple eSourcing event or combine advanced weighted proposals with integrated procurement solutions we can help with our range of offerings and support.
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The company and people are intuitive, young and enthusiastic in nature. Specsavers will be looking to use Market Dojo as a ‘business as usual’ tool and regard it as an integral part of their negotiation toolkit.