We have already discussed an overview of the Conduct Procurements process and its inputs. The tools and techniques of this process are pretty much common sense. Let us take a look
Analytical Techniques
One such analysis could be to check the track record of the seller on past projects of similar nature. If the past track record is good it is safe to imply that the seller is a good fit
Advertising
Ads are the best way to get in touch with sellers. In certain project situations, it might even be mandatory to publish ads. This is mostly true for government funded projects
Bidder Conferences
Interested sellers will bid for your project. It is important to ensure that they compete in a fair and unbiased manner. Some of the sellers may have follow up questions on the project details that you provide. Answering their queries might create an unfair advantage. That’s why it is best to have everyone in the same room at the same time so that you do not provide an insider information that other sellers don’t have access to
Independent Estimates
If you have ever consulted someone for a price estimate before making a purchase you have used this tool. Basically, when you do not have the expertise to figure out whether the seller is quoting a fair price you can look for independent estimates
Procurement Negotiation
If you haven’t realized yet, your procurement department including legal team is heavily involved during all the procurement processes. When you share procurement documents and the type of contract you are willing to sign, you would’ve also shared estimated costs and contract terms. The seller might want to negotiate on these points, that’s where procurement negotiation comes into the picture
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