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2A(5.1) Plan Approach To Market
Strategic Sourcing Framework

Description

The process of determining the approach to the market is the result of all the analysis and thinking to date. 
This stage is the start of Sourcing Strategy Implementation, which was developed during the previous stages.  
Market approach is how you choose to interact with the market. 
It requires a structured approach that satisfies fairness, equity, competitiveness, cost effectiveness and transparency.

Objective:
This stage involves deciding on the most appropriate approach to the market. 

Output:
  • Market approach.
  • Approved approach endorsed by the cross-functional sourcing team and the project sponsor

STRATEGY TO APPROACH THE MARKET
This stage involves deciding an appropriate approach to market, evaluation methodology, process plan and realistic timetable. 
It brings together your analysis and thinking to date. It results in a sourcing plan.
There are several process options that may be considered. These include:
  • Pre-tender supplier engagement, such as EOI (Expression of Interest), RFI (Request for Information)
  • Pre-qualification of suppliers through a RFP (Request for Proposals) in which suppliers will be evaluated on capability and functionality?
  • Open or closed tender?
  • Single stage or multi-stage tender?
  • One or two envelope system?
  • Type of RFx document required (RFI, RFQ, RFP, RFB)?
  • Departure from current procurement policy, with compelling justification?
  • Advertising the opportunity (E-tender portal, industry publications, media)?
  • Will alternative proposals be considered?

MATCHING MARKET APPROACH TO CONTEXT
In moving away from a ‘one size fits all’ approach to procurement, there is a need to review the options to establish:
  • Which procurement method promises the most value- effective procurement process for the prevailing market conditions?
  • Do different procurement methods comply with policy?
  • How can any non-compliance issues be resolved?
  • Which procurement method best suits which procurement contract?
  • What is the basis for selection?
  • Who makes the decision?

The ability to select the appropriate procurement method is one of the 
professional skills required to drive increased value from procurement.

See related topics and documents
  
  
2A(5.1) SPF GPG  - Plan Approach to Market.docx