Our blog guides you through eight reasons to take a fresh look at framework agreements and evaluate whether your business could benefit from this streamlined purchasing approach.
Reason 5: Cost effective solutions
In the current environment, maximising resources must be a key driver for all procurement decisions. Choosing a framework agreement can save money as well as time. Value for money within frameworks is obviously a key consideration and attractive prices can be accessed through a single framework. This type of agreement drives competition between suppliers by aggregating demand to help ensure that landlords receive the best price.
Framework agreements exist to offer best price as part of the package and have been set up by contracting authorities specifically to meet the transparency requirements of public sector procurement. By engaging in these umbrella arrangements, you can take advantage of work already done on behalf of the sector with peace of mind.
You will avoid procurement consultants’ fees because you can trust that the correct process has already been followed in full. Framework suppliers have already been assessed for best value products and services. In addition, large providers can leverage their buying power to access the best prices through aggregation. Check the size of the agreement to help you assess the value of its bargaining power and whether there is any fee associated with access to the framework.
Reason 6: Tailored for your community
Depending on your location in the UK, the rules around public sector procurement will vary. Frameworks are often organised within regional boundaries that restrict access along geographical lines. Check that your organisation is eligible to take advantage of the framework based on your location.
In England and Scotland, framework agreements are usually operated by private sector businesses. In Scotland, some contracting authorities have formed consortia to aggregate their spending power into framework agreements. In Wales, frameworks are managed by the Welsh government to enable public sector procurement, often as part of localised or regional agreements, and suppliers must be Welsh speakers. Always examine the lotting strategy for each framework as these differ across suppliers and regions.
You may want to deal with local builders’ merchants branches, or you might be looking for help to manage your own stores. You might require suppliers to make deliveries to your sites or offer secure collection points where materials can be picked up. It is advisable to check that suppliers operate data systems that are compatible with your infrastructure, enabling them to act as partners for your organisation, operating as part of your wider team. The data and insights that suppliers can provide may influence future purchasing decisions and forward planning. Such intelligence can lead to far- reaching improvements for your business and its profitability.
Our blogs will continue next week with Reasons 7 & 8: Supporting Social value and building positive relationships.