Procurement & Tender Management: Getting It Right

Most organisations don't run formal procurement processes often enough to be good at them. When a significant purchase comes up—new software, a major service contract, capital equipment—the process is often ad-hoc, inconsistent, and leaves value on the table. Conversely, suppliers responding to tenders often lack the experience to write compelling bids that actually win.

Whether you're buying or selling, professional procurement and tender management follows structured approaches that deliver better outcomes. This article covers the fundamentals—and the advanced practices that separate winning bids from also-rans.

Understanding the RFX Family

Different procurement situations call for different approaches. Understanding when to use each type of request document is fundamental to running an effective process.

The Professional Procurement Process

A structured procurement process protects both parties, ensures fair evaluation, and delivers better outcomes. Here's the standard approach:

Phase 1: Requirements Definition

This is where most procurement processes fail. Unclear requirements lead to mismatched responses, difficult evaluations, and poor outcomes. Get this right:

• Separate needs from wants — Mandatory requirements vs. desirable features
• Define success criteria — How will you measure if this procurement succeeded?
• Set realistic budgets — Budget should inform, not artificially constrain, the process
• Establish evaluation criteria upfront — And communicate them to bidders
• Include all stakeholders — Technical, commercial, operational, end-users

Phase 2: Market Analysis

Before issuing any formal request, understand the market. Who are the credible suppliers? What's the typical pricing structure? What are the alternative approaches?

Category Analysis: Kraljic Matrix

Different categories require different procurement strategies

↑ High Supply Risk | Low Supply Risk ↓

Evaluation: The Science of Selection

Professional evaluation uses weighted criteria to ensure objective, defensible decisions. This isn't just best practice—for government procurement, it's often legally required.

Weighted Scoring Model

Each criterion receives a weight reflecting its importance. Bidders are scored against each criterion, then scores are weighted to produce a total.

Scoring Scale

Use consistent scoring across all evaluators:

Writing Winning Bids

If you're on the supplier side, understanding how to write compelling responses is equally critical. Most bids lose not because the supplier can't do the work, but because the bid doesn't demonstrate it effectively.

The STAR Method for Evidence

Every claim in your bid should be supported by evidence. Use the STAR format:

• Situation — Context and challenge faced
• Task — What you were engaged to do
• Action — Specific actions you took
• Result — Measurable outcomes achieved

Government vs Private Sector

Procurement approaches differ significantly between sectors. Understanding these differences is crucial whether you're buying or selling.

Best Practice Checklist

Key Takeaways

• Match the RFX type to the situation — RFQ for commodities, RFP for solutions, RFT for high-value formal processes
• Requirements definition is critical — Ambiguous requirements produce poor outcomes
• Weighted evaluation ensures objectivity — Published criteria, consistent scoring, documented rationale
• Evidence wins bids — Claims without proof are worthless; use case studies and measurable results
• Compliance is non-negotiable — The best proposal loses if it's non-compliant
• Process protects everyone — Buyers get better value; sellers get fair evaluation

Professional procurement isn't bureaucracy for its own sake—it's a structured approach that delivers better outcomes for buyers and fairer opportunities for sellers. Whether you're running a $50,000 software purchase or a multi-million dollar government contract, the principles remain the same.