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Published on 04/01/2021
Published on 16/10/2020
Published on 12/03/2020
Published on 02/11/2020
Published on 23/01/2020
Published on 20/06/2016
By Gary Ford, Head of Commercial, ESPO
Small to medium sized enterprises (SMEs) are crucial to the success of our local economies and for any organisations looking to work with a variety of suppliers, SMEs can bring unique benefits to the supply chain including:
Innovative products and services
Supply chain diversity
Making corporate social responsibility (CSR) happen
All the leading professional buying organisations value the contribution smaller companies make to their organisations and here at ESPO we actively encourages SMEs to bid for a place on our frameworks. This provides a sustainable route to market for them in a volatile economy, and adds a greater degree of diversity to our supply chains. However, it’s not uncommon for SMEs to be somewhat overwhelmed by the tender process, considering it to be onerous, time-consuming and overly complicated, and all too often steeped in red tape.
Unfortunately, some SMEs are still under the misapprehension that ‘only large firms win tenders’ and there’s little point in them even going through the tender process if they are unlikely to win.
However, this isn’t always the case and we actively work with smaller firms to show them the commercial benefits as well as encouraging them to engage with and get a listing on our frameworks. In order to encourage our mutually-beneficial relationships with the SME community, here are some of the ways we help ease the tendering process so that gaining a place on one our many frameworks becomes as straightforward as possible:
Wherever possible, we break down the tender into smaller lots, e.g. based on supply to a specific geographic area or product type. This often helps SMEs realise that the scope of the contract is manageable, they can successfully deliver on it and therefore stand a chance of winning.
One immediate concern for many SMEs when they start talking to us is how much their insurance premiums will go up if they are awarded on to one of our frameworks. Many smaller firms tend to have an ‘off the shelf’ policy which for many purposes is adequate for most business. We try to set requirements proportionate to the risk and the business, but it will sometimes be higher than the ‘standard’ levels. However, once accepted onto a framework, it can be as simple as a one-off top up to their existing cover and it’s sufficient to confirm willingness to increase cover, if required, to meet framework requirements – so that the increased cover only needs to be taken when actual business is awarded.*
We understand that SMEs lack the internal resources or time to commit to assembling and submitting lengthy tender responses, so we have simplified this process as much as possible. We don’t use jargon or complicated terms and we keep it simple. We welcome any supplier questions along the way to help with the tender submission process.
With smaller firms often having little management resource and time to dedicate to completing lengthy tender documents, they can use the PBO’s eTendering software to make the process simpler and less time-consuming in the future. Once the supplier has registered, it speeds up the process considerably for the next time; and suppliers can register their interest in certain categories so that they are notified about opportunities as and when they arise so that they don’t have to spend time seeking them out.
We appreciate that SMEs may not be able to provide the level of financial detail or audited accounts that are often required before starting a contract, so we work with SMEs to manage risk and assess their financial credentials.
We regularly host bidder days for specific frameworks as an opportunity for the SME community to meet us and understand what opportunities are available to them. Discussing opportunities face-to-face can help SMEs understand what’s required as part of the tender process and ultimately give them the confidence to tender. Opportunities for innovative small firms lie in products and services as diverse as home care services and specialist catering. We organise bidder days in different regions of the country too to help suppliers in the area win new business locally.
Our unique insights into the needs of the SME supplier community helps us to continually improve our processes and ensure that our tenders are accessible and present sustainable business opportunities for smaller companies. Any smaller firms that feel overwhelmed or worried about submitting a tender should speak to us directly to find a solution. There’s everything to gain and nothing to lose.
Visit our Suppliers section to view the tendering process in full.
Visit our tendering portal East Mids Tenders to register or view current opportunities.
Any questions? Visit our Contact page for details of our procurement teams.
* “when actual business is awarded” refers to the point at which a supplier is appointed/awarded a place on a framework/contract.