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They also manage negotiation and contracting, as well as supplier relationship management. Their work covers the full cycle, from identifying a need through to the end of a contract or an asset’s useful life.",{"type":78,"attrs":143,"content":145},{"textAlign":26,"key":144},"p-2",[146,148,154],{"text":147,"type":84},"Procurement is broader than purchasing. CIPS describes procurement as a long-term approach to acquiring goods and services, while purchasing is short-term, reactive, and transactional. The distinction affects how teams design workflows for ",{"text":149,"type":84,"marks":150},"procurement vs. purchasing",[151],{"type":130,"attrs":152},{"href":153,"uuid":26,"anchor":26,"target":133,"linktype":63},"https://www.spendesk.com/blog/procurement-vs-purchasing/",{"text":155,"type":84},".",{"type":78,"attrs":157,"content":159},{"textAlign":26,"key":158},"p-3",[160],{"text":161,"type":84},"Sourcing sits inside procurement. 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Use an RFQ when your procurement team has fixed the specification, and use an RFP when you need suppliers to propose a solution.",{"type":195,"content":212},[213],{"type":78,"attrs":214,"content":216},{"textAlign":26,"key":215},"p-8",[217],{"text":218,"type":84},"Quality and delivery have remained leading supplier-selection criteria. Dickson ranked performance history third and price sixth in 1966. Mannheim’s 2023 survey ranked cost first, followed by quality in second place and delivery in third.",{"type":195,"content":220},[221],{"type":78,"attrs":222,"content":224},{"textAlign":26,"key":223},"p-9",[225,231],{"text":226,"type":84,"marks":227},"Automated invoicing",[228],{"type":130,"attrs":229},{"href":230,"uuid":26,"anchor":26,"target":133,"linktype":63},"https://payablesplace.ardentpartners.com/2025/11/state-of-epayables-part-six-epayables-adoption-must-increase/",{"text":232,"type":84}," can reduce invoice-processing costs by 60% to 80% compared with manual and paper methods, according to Ardent Partners’ 2025 research.",{"type":185,"attrs":234,"content":235},{"level":187,"textAlign":26},[236],{"text":237,"type":84},"6 procurement methods to find reliable vendors",{"type":78,"attrs":239,"content":240},{"textAlign":26,"key":80},[241],{"text":242,"type":84},"The right procurement method depends on how precisely you can specify what you need. The contract’s value and the level of competition available in the market also matter.",{"type":78,"attrs":244,"content":245},{"textAlign":26,"key":138},[246],{"text":247,"type":84},"Here is how six widely used methods compare:",{"type":249,"content":250},"table",[251,280,310,339,370,401,432],{"type":252,"content":253},"tableRow",[254,264,272],{"type":255,"attrs":256,"content":258},"tableHeader",{"colspan":257,"rowspan":257,"colwidth":26},1,[259],{"type":78,"attrs":260,"content":261},{"textAlign":26,"key":144},[262],{"text":263,"type":84},"Method",{"type":255,"attrs":265,"content":266},{"colspan":257,"rowspan":257,"colwidth":26},[267],{"type":78,"attrs":268,"content":269},{"textAlign":26,"key":158},[270],{"text":271,"type":84},"Best when",{"type":255,"attrs":273,"content":274},{"colspan":257,"rowspan":257,"colwidth":26},[275],{"type":78,"attrs":276,"content":277},{"textAlign":26,"key":167},[278],{"text":279,"type":84},"How suppliers compete",{"type":252,"content":281},[282,294,302],{"type":283,"attrs":284,"content":285},"tableCell",{"colspan":257,"rowspan":257,"colwidth":26,"backgroundColor":26},[286],{"type":78,"attrs":287,"content":288},{"textAlign":26,"key":173},[289],{"text":290,"type":84,"marks":291},"Open tendering",[292],{"type":293},"bold",{"type":283,"attrs":295,"content":296},{"colspan":257,"rowspan":257,"colwidth":26,"backgroundColor":26},[297],{"type":78,"attrs":298,"content":299},{"textAlign":26,"key":199},[300],{"text":301,"type":84},"Requirements are clear and you want maximum competition",{"type":283,"attrs":303,"content":304},{"colspan":257,"rowspan":257,"colwidth":26,"backgroundColor":26},[305],{"type":78,"attrs":306,"content":307},{"textAlign":26,"key":207},[308],{"text":309,"type":84},"Any supplier may bid. 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Two-stage tendering",{"type":78,"attrs":626,"content":628},{"textAlign":26,"key":627},"p-41",[629],{"text":630,"type":84},"Two-stage tendering appoints a supplier before the buyer has all the information needed for a fixed price.",{"type":78,"attrs":632,"content":634},{"textAlign":26,"key":633},"p-42",[635],{"text":636,"type":84},"CIPS describes it as a method:",{"type":163,"content":638},[639],{"type":78,"attrs":640,"content":642},{"textAlign":26,"key":641},"p-43",[643],{"text":644,"type":84},"“Used to allow early appointment of a supplier.”",{"type":78,"attrs":646,"content":648},{"textAlign":26,"key":647},"p-44",[649],{"text":650,"type":84},"In stage one, bidders compete on:",{"type":192,"content":652},[653,661,669,677],{"type":195,"content":654},[655],{"type":78,"attrs":656,"content":658},{"textAlign":26,"key":657},"p-45",[659],{"text":660,"type":84},"Capability and experience.",{"type":195,"content":662},[663],{"type":78,"attrs":664,"content":666},{"textAlign":26,"key":665},"p-46",[667],{"text":668,"type":84},"Supply chain strength.",{"type":195,"content":670},[671],{"type":78,"attrs":672,"content":674},{"textAlign":26,"key":673},"p-47",[675],{"text":676,"type":84},"Fees.",{"type":195,"content":678},[679],{"type":78,"attrs":680,"content":682},{"textAlign":26,"key":681},"p-48",[683],{"text":684,"type":84},"Relevant delivery expertise.",{"type":78,"attrs":686,"content":688},{"textAlign":26,"key":687},"p-49",[689],{"text":690,"type":84},"The buyer appoints the winner under a pre-construction services agreement (PCSA) or a similar arrangement.",{"type":78,"attrs":692,"content":694},{"textAlign":26,"key":693},"p-50",[695],{"text":696,"type":84},"In stage two, once the project team has finalised the design and scope, the parties negotiate a fixed price or target cost.",{"type":78,"attrs":698,"content":700},{"textAlign":26,"key":699},"p-51",[701,703,709],{"text":702,"type":84},"Construction and infrastructure buyers commonly use this method. ",{"text":704,"type":84,"marks":705},"RICS notes",[706],{"type":130,"attrs":707},{"href":708,"uuid":26,"anchor":26,"target":133,"linktype":63},"https://www.rics.org/content/dam/ricsglobal/documents/standards/Developing-a-construction-procurement-strategy.pdf",{"text":710,"type":84}," that buyers can select the contractor before completing the design, although an earlier start reduces certainty about the final cost.",{"type":78,"attrs":712,"content":714},{"textAlign":26,"key":713},"p-52",[715],{"text":716,"type":84},"Two-stage tendering suits:",{"type":192,"content":718},[719,727,735,743],{"type":195,"content":720},[721],{"type":78,"attrs":722,"content":724},{"textAlign":26,"key":723},"p-53",[725],{"text":726,"type":84},"Complex or large-scale projects.",{"type":195,"content":728},[729],{"type":78,"attrs":730,"content":732},{"textAlign":26,"key":731},"p-54",[733],{"text":734,"type":84},"Refurbishments where the buyer cannot fully define the scope upfront.",{"type":195,"content":736},[737],{"type":78,"attrs":738,"content":740},{"textAlign":26,"key":739},"p-55",[741],{"text":742,"type":84},"Design-and-build contracts.",{"type":195,"content":744},[745],{"type":78,"attrs":746,"content":748},{"textAlign":26,"key":747},"p-56",[749],{"text":750,"type":84},"Highways work where early planning for rail possessions or utility diversions is valuable.",{"type":78,"attrs":752,"content":754},{"textAlign":26,"key":753},"p-57",[755,757,763],{"text":756,"type":84},"The approach is also covered in ",{"text":758,"type":84,"marks":759},"UK government early contractor involvement guidance",[760],{"type":130,"attrs":761},{"href":762,"uuid":26,"anchor":26,"target":133,"linktype":63},"https://assets.publishing.service.gov.uk/media/5a7dd855ed915d2ac884de4d/Early_contractor_involvement__ECI__guidance__Oct_2014_.pdf",{"text":155,"type":84},{"type":78,"attrs":765,"content":767},{"textAlign":26,"key":766},"p-58",[768],{"text":769,"type":84},"Two risks require management. RICS cautions that the client loses leverage in the second stage because the incumbent supplier no longer faces competitors. Market costs can also rise between stages.",{"type":78,"attrs":771,"content":773},{"textAlign":26,"key":772},"p-59",[774],{"text":775,"type":84},"JCT suggests reintroducing competition at stage two through open-book tendering of subcontracts.",{"type":185,"attrs":777,"content":778},{"level":465,"textAlign":26},[779],{"text":780,"type":84},"4. Request for quotations",{"type":78,"attrs":782,"content":784},{"textAlign":26,"key":783},"p-60",[785],{"text":786,"type":84},"An RFQ is “an invitation to suppliers to bid on specific products or services”, according to the CIPS glossary.",{"type":78,"attrs":788,"content":790},{"textAlign":26,"key":789},"p-61",[791],{"text":792,"type":84},"It is the right tool when your procurement team has already defined the requirements. You send selected suppliers a fixed specification and compare responses primarily on:",{"type":192,"content":794},[795,803,811,819],{"type":195,"content":796},[797],{"type":78,"attrs":798,"content":800},{"textAlign":26,"key":799},"p-62",[801],{"text":802,"type":84},"Price.",{"type":195,"content":804},[805],{"type":78,"attrs":806,"content":808},{"textAlign":26,"key":807},"p-63",[809],{"text":810,"type":84},"Delivery timescales.",{"type":195,"content":812},[813],{"type":78,"attrs":814,"content":816},{"textAlign":26,"key":815},"p-64",[817],{"text":818,"type":84},"Quantity.",{"type":195,"content":820},[821],{"type":78,"attrs":822,"content":824},{"textAlign":26,"key":823},"p-65",[825],{"text":826,"type":84},"Quality.",{"type":78,"attrs":828,"content":830},{"textAlign":26,"key":829},"p-66",[831],{"text":832,"type":84},"Use RFQs for standard, lower-value purchases where suppliers’ offerings are interchangeable. Examples include office equipment and standard components. Routine services can also fit.",{"type":78,"attrs":834,"content":836},{"textAlign":26,"key":835},"p-67",[837],{"text":838,"type":84},"RFQs generally suit lower-value requirements, and buyers compare bids on price and delivery. The buyer typically awards the contract to the lowest-priced compliant bidder.",{"type":78,"attrs":840,"content":842},{"textAlign":26,"key":841},"p-68",[843],{"text":844,"type":84},"Because an RFQ presumes that the procurement team has settled the specification, avoid using one when design questions remain open.",{"type":78,"attrs":846,"content":848},{"textAlign":26,"key":847},"p-69",[849],{"text":850,"type":84},"If suppliers could reasonably propose different solutions, you need an RFP instead. Forcing a solution decision into an RFQ simply moves the ambiguity into the contract.",{"type":185,"attrs":852,"content":853},{"level":465,"textAlign":26},[854],{"text":855,"type":84},"5. Selective tendering",{"type":78,"attrs":857,"content":859},{"textAlign":26,"key":858},"p-70",[860],{"text":861,"type":84},"In selective tendering, the buyer invites bids only from suppliers it has pre-qualified.",{"type":78,"attrs":863,"content":865},{"textAlign":26,"key":864},"p-71",[866,868,874],{"text":867,"type":84},"Under the ",{"text":869,"type":84,"marks":870},"WTO Government Procurement Agreement",[871],{"type":130,"attrs":872},{"href":873,"uuid":26,"anchor":26,"target":133,"linktype":63},"https://www.wto.org/english/docs_e/legal_e/rev-gpr-94_01_e.htm",{"text":875,"type":84},", the procuring entity invites only qualified suppliers to submit a tender.",{"type":78,"attrs":877,"content":879},{"textAlign":26,"key":878},"p-72",[880,882,888],{"text":881,"type":84},"In construction practice, buyers draw a shortlist from suppliers with a known track record, typically inviting no more than six to tender, according to ",{"text":883,"type":84,"marks":884},"Designing Buildings Wiki",[885],{"type":130,"attrs":886},{"href":887,"uuid":26,"anchor":26,"target":133,"linktype":63},"https://www.designingbuildings.co.uk/wiki/Selective_tendering",{"text":155,"type":84},{"type":78,"attrs":890,"content":892},{"textAlign":26,"key":891},"p-73",[893],{"text":894,"type":84},"Use selective tendering when:",{"type":192,"content":896},[897,905,913,921],{"type":195,"content":898},[899],{"type":78,"attrs":900,"content":902},{"textAlign":26,"key":901},"p-74",[903],{"text":904,"type":84},"Open competition would generate more bids than you can meaningfully evaluate.",{"type":195,"content":906},[907],{"type":78,"attrs":908,"content":910},{"textAlign":26,"key":909},"p-75",[911],{"text":912,"type":84},"The work demands proven capability that you have already verified.",{"type":195,"content":914},[915],{"type":78,"attrs":916,"content":918},{"textAlign":26,"key":917},"p-76",[919],{"text":920,"type":84},"You want to reduce evaluation time.",{"type":195,"content":922},[923],{"type":78,"attrs":924,"content":926},{"textAlign":26,"key":925},"p-77",[927],{"text":928,"type":84},"You need to screen out unqualified bidders before they price the work.",{"type":78,"attrs":930,"content":932},{"textAlign":26,"key":931},"p-78",[933],{"text":934,"type":84},"Do not confuse selective tendering with the EU’s restricted procedure.",{"type":78,"attrs":936,"content":938},{"textAlign":26,"key":937},"p-79",[939],{"text":940,"type":84},"Under Directive 2014/24/EU, the restricted procedure starts with a public call in which any operator may request to participate. The authority then invites a minimum of five candidates to tender.",{"type":78,"attrs":942,"content":944},{"textAlign":26,"key":943},"p-80",[945],{"text":946,"type":84},"Selective tendering in the general sense skips that fresh open call and works from an existing approved list.",{"type":78,"attrs":948,"content":950},{"textAlign":26,"key":949},"p-81",[951,953,959],{"text":952,"type":84},"In England, Wales, and Northern Ireland, the ",{"text":954,"type":84,"marks":955},"Procurement Act 2023",[956],{"type":130,"attrs":957},{"href":958,"uuid":26,"anchor":26,"target":133,"linktype":63},"https://www.legislation.gov.uk/ukpga/2023/54/contents/enacted",{"text":960,"type":84},", which came into force on 24 February 2025, replaced the restricted procedure with a competitive flexible procedure. This allows authorities to limit participants and build in negotiation or dialogue stages.",{"type":78,"attrs":962,"content":964},{"textAlign":26,"key":963},"p-82",[965],{"text":966,"type":84},"Scotland retains its own procurement rules for most devolved contracting authorities.",{"type":185,"attrs":968,"content":969},{"level":465,"textAlign":26},[970],{"text":971,"type":84},"6. Single source",{"type":78,"attrs":973,"content":975},{"textAlign":26,"key":974},"p-83",[976],{"text":977,"type":84},"With single-source procurement, the buyer awards the contract to one supplier without competition.",{"type":78,"attrs":979,"content":981},{"textAlign":26,"key":980},"p-84",[982,984,990],{"text":983,"type":84},"It is legitimate in narrow circumstances, including genuine urgency, which ",{"text":985,"type":84,"marks":986},"FAR 6.302-2",[987],{"type":130,"attrs":988},{"href":989,"uuid":26,"anchor":26,"target":133,"linktype":63},"https://www.acquisition.gov/far/6.302",{"text":991,"type":84}," and the EU’s negotiated procedure without publication both codify.",{"type":78,"attrs":993,"content":995},{"textAlign":26,"key":994},"p-85",[996],{"text":997,"type":84},"Technical uniqueness may also justify the method where only one responsible source exists.",{"type":78,"attrs":999,"content":1001},{"textAlign":26,"key":1000},"p-86",[1002],{"text":1003,"type":84},"For compatibility constraints, the EU directive permits additional deliveries from the original supplier if switching would cause:",{"type":163,"content":1005},[1006],{"type":78,"attrs":1007,"content":1009},{"textAlign":26,"key":1008},"p-87",[1010],{"text":1011,"type":84},"“Incompatibility or disproportionate technical difficulties.”",{"type":78,"attrs":1013,"content":1015},{"textAlign":26,"key":1014},"p-88",[1016],{"text":1017,"type":84},"CIPS notes that single sourcing can:",{"type":192,"content":1019},[1020,1028,1036,1044],{"type":195,"content":1021},[1022],{"type":78,"attrs":1023,"content":1025},{"textAlign":26,"key":1024},"p-89",[1026],{"text":1027,"type":84},"Reduce administration costs.",{"type":195,"content":1029},[1030],{"type":78,"attrs":1031,"content":1033},{"textAlign":26,"key":1032},"p-90",[1034],{"text":1035,"type":84},"Shorten order lead times.",{"type":195,"content":1037},[1038],{"type":78,"attrs":1039,"content":1041},{"textAlign":26,"key":1040},"p-91",[1042],{"text":1043,"type":84},"Offer consistent levels of quality.",{"type":195,"content":1045},[1046],{"type":78,"attrs":1047,"content":1049},{"textAlign":26,"key":1048},"p-92",[1050],{"text":1051,"type":84},"Provide greater price stability.",{"type":78,"attrs":1053,"content":1055},{"textAlign":26,"key":1054},"p-93",[1056],{"text":1057,"type":84},"However, evidence from GAO and ANAO documents substantial overspending and compliance risks. CIPS also warns about supplier dependency.",{"type":78,"attrs":1059,"content":1061},{"textAlign":26,"key":1060},"p-94",[1062],{"text":1063,"type":84},"The US Government Accountability Office found that:",{"type":163,"content":1065},[1066],{"type":78,"attrs":1067,"content":1069},{"textAlign":26,"key":1068},"p-95",[1070],{"text":1071,"type":84},"“Noncompetitive contracts pose a risk of overspending because they lack the benefits of competition in establishing pricing.”",{"type":78,"attrs":1073,"content":1075},{"textAlign":26,"key":1074},"p-96",[1076,1078,1084],{"text":1077,"type":84},"In FY2013, US federal agencies did not compete roughly 36% of contracts by value, representing $164 billion, according to ",{"text":1079,"type":84,"marks":1080},"GAO-14-304",[1081],{"type":130,"attrs":1082},{"href":1083,"uuid":26,"anchor":26,"target":133,"linktype":63},"https://www.gao.gov/assets/gao-14-304.pdf",{"text":155,"type":84},{"type":78,"attrs":1086,"content":1088},{"textAlign":26,"key":1087},"p-97",[1089],{"text":1090,"type":84},"CIPS adds two commercial warnings:",{"type":192,"content":1092},[1093,1101],{"type":195,"content":1094},[1095],{"type":78,"attrs":1096,"content":1098},{"textAlign":26,"key":1097},"p-98",[1099],{"text":1100,"type":84},"If your sole supplier experiences disruption, you may not get the supplies you need.",{"type":195,"content":1102},[1103],{"type":78,"attrs":1104,"content":1106},{"textAlign":26,"key":1105},"p-99",[1107],{"text":1108,"type":84},"You may miss innovative alternatives available elsewhere in the market.",{"type":78,"attrs":1110,"content":1112},{"textAlign":26,"key":1111},"p-100",[1113],{"text":1114,"type":84},"Treat single source as an exception requiring written justification. This is consistent with how the FAR and EU directive treat the method.",{"type":185,"attrs":1116,"content":1117},{"level":187,"textAlign":26},[1118],{"text":1119,"type":84},"6 best practices for choosing suppliers",{"type":78,"attrs":1121,"content":1123},{"textAlign":26,"key":1122},"p-101",[1124],{"text":1125,"type":84},"Whichever procurement method you use, the quality of the outcome depends on how you vet and evaluate suppliers, and how you manage them afterwards.",{"type":78,"attrs":1127,"content":1129},{"textAlign":26,"key":1128},"p-102",[1130],{"text":1131,"type":84},"Research from professional bodies and industry surveys supports the following six practices. Academic studies add further evidence.",{"type":185,"attrs":1133,"content":1134},{"level":465,"textAlign":26},[1135],{"text":1136,"type":84},"1. Treat vendors as vetted partners",{"type":78,"attrs":1138,"content":1140},{"textAlign":26,"key":1139},"p-103",[1141],{"text":1142,"type":84},"Vet suppliers as if your revenue depends on them, because it does.",{"type":78,"attrs":1144,"content":1146},{"textAlign":26,"key":1145},"p-104",[1147,1149,1155],{"text":1148,"type":84},"Almost 80% of organisations experienced supply chain disruption in the past 12 months, while third-party or supplier failures disrupted 43.6%, according to the ",{"text":1150,"type":84,"marks":1151},"BCI Supply Chain Resilience Report 2024",[1152],{"type":130,"attrs":1153},{"href":1154,"uuid":26,"anchor":26,"target":133,"linktype":63},"https://www.thebci.org/news/supply-chain-disruptions-drive-increased-tier-mapping-and-insurance-uptake.html",{"text":155,"type":84},{"type":78,"attrs":1157,"content":1159},{"textAlign":26,"key":1158},"p-105",[1160],{"text":1161,"type":84},"Deloitte’s February 2024 research associates disruption with losses of more than 6% to 10% of annual revenue, as well as reputational damage.",{"type":78,"attrs":1163,"content":1165},{"textAlign":26,"key":1164},"p-106",[1166,1168,1174],{"text":1167,"type":84},"Only 33% of organisations assessed the business continuity plans of their tier-one key suppliers, according to ",{"text":1169,"type":84,"marks":1170},"BCI’s 2023 report",[1171],{"type":130,"attrs":1172},{"href":1173,"uuid":26,"anchor":26,"target":133,"linktype":63},"https://www.thebci.org/static/340ffa9b-03b4-4baf-9add7071cbbea758/BCI-Supply-Chain-Resilience-Report-2023.pdf",{"text":155,"type":84},{"type":78,"attrs":1176,"content":1178},{"textAlign":26,"key":1177},"p-107",[1179,1181,1187],{"text":1180,"type":84},"Only 15% of chief procurement officers have visibility beyond tier one, even though up to 85% of supply chain risk may sit in sub-tiers, according to ",{"text":1182,"type":84,"marks":1183},"Sedex",[1184],{"type":130,"attrs":1185},{"href":1186,"uuid":26,"anchor":26,"target":133,"linktype":63},"https://www.sedex.com/blog/supply-chain-visibility-beyond-tier-1/",{"text":155,"type":84},{"type":78,"attrs":1189,"content":1191},{"textAlign":26,"key":1190},"p-108",[1192],{"text":1193,"type":84},"Practices are shifting in response:",{"type":192,"content":1195},[1196,1211],{"type":195,"content":1197},[1198],{"type":78,"attrs":1199,"content":1201},{"textAlign":26,"key":1200},"p-109",[1202,1204,1210],{"text":1203,"type":84},"73% of companies reported progress on dual-sourcing strategies, according to ",{"text":1205,"type":84,"marks":1206},"McKinsey",[1207],{"type":130,"attrs":1208},{"href":1209,"uuid":26,"anchor":26,"target":133,"linktype":63},"https://www.mckinsey.com/capabilities/operations/our-insights/supply-chain-risk-survey-2024",{"text":155,"type":84},{"type":195,"content":1212},[1213],{"type":78,"attrs":1214,"content":1216},{"textAlign":26,"key":1215},"p-110",[1217],{"text":1218,"type":84},"Roughly nine in ten companies now include tariff-related clauses in some contracts, according to an Agiloft survey of 600 respondents.",{"type":78,"attrs":1220,"content":1222},{"textAlign":26,"key":1221},"p-111",[1223,1225,1231],{"text":1224,"type":84},"Ongoing measurement is part of vetting too. Only 22% of procurement organisations use supplier scorecards that combine operational and non-operational metrics, according to ",{"text":1226,"type":84,"marks":1227},"Gartner",[1228],{"type":130,"attrs":1229},{"href":1230,"uuid":26,"anchor":26,"target":133,"linktype":63},"https://www.gartner.com/en/supply-chain/topics/supply-chain-risk-management",{"text":155,"type":84},{"type":78,"attrs":1233,"content":1235},{"textAlign":26,"key":1234},"p-112",[1236],{"text":1237,"type":84},"Build scorecards that track:",{"type":192,"content":1239},[1240,1248,1255,1263],{"type":195,"content":1241},[1242],{"type":78,"attrs":1243,"content":1245},{"textAlign":26,"key":1244},"p-113",[1246],{"text":1247,"type":84},"Delivery.",{"type":195,"content":1249},[1250],{"type":78,"attrs":1251,"content":1253},{"textAlign":26,"key":1252},"p-114",[1254],{"text":826,"type":84},{"type":195,"content":1256},[1257],{"type":78,"attrs":1258,"content":1260},{"textAlign":26,"key":1259},"p-115",[1261],{"text":1262,"type":84},"Financial stability.",{"type":195,"content":1264},[1265],{"type":78,"attrs":1266,"content":1268},{"textAlign":26,"key":1267},"p-116",[1269],{"text":1270,"type":84},"ESG performance.",{"type":78,"attrs":1272,"content":1274},{"textAlign":26,"key":1273},"p-117",[1275],{"text":1276,"type":84},"Review them on a fixed cadence.",{"type":185,"attrs":1278,"content":1279},{"level":465,"textAlign":26},[1280],{"text":1281,"type":84},"2. 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That factor also determines whether you need a two-stage process, so procurement teams should choose the method after completing the needs assessment.",{"type":78,"attrs":1295,"content":1297},{"textAlign":26,"key":1296},"p-120",[1298],{"text":1299,"type":84},"CIPS places needs identification and specification as the first stage of the procurement process, ahead of market engagement and tender preparation.",{"type":78,"attrs":1301,"content":1303},{"textAlign":26,"key":1302},"p-121",[1304],{"text":1305,"type":84},"A needs assessment should cover both the requirement and its sourcing context.",{"type":185,"attrs":1307,"content":1309},{"level":1308,"textAlign":26},4,[1310],{"text":1311,"type":84},"The requirement",{"type":78,"attrs":1313,"content":1315},{"textAlign":26,"key":1314},"p-122",[1316],{"text":1317,"type":84},"This includes:",{"type":192,"content":1319},[1320,1328,1336,1344,1352],{"type":195,"content":1321},[1322],{"type":78,"attrs":1323,"content":1325},{"textAlign":26,"key":1324},"p-123",[1326],{"text":1327,"type":84},"Specifications.",{"type":195,"content":1329},[1330],{"type":78,"attrs":1331,"content":1333},{"textAlign":26,"key":1332},"p-124",[1334],{"text":1335,"type":84},"Volumes.",{"type":195,"content":1337},[1338],{"type":78,"attrs":1339,"content":1341},{"textAlign":26,"key":1340},"p-125",[1342],{"text":1343,"type":84},"Quality requirements.",{"type":195,"content":1345},[1346],{"type":78,"attrs":1347,"content":1349},{"textAlign":26,"key":1348},"p-126",[1350],{"text":1351,"type":84},"Delivery expectations.",{"type":195,"content":1353},[1354],{"type":78,"attrs":1355,"content":1357},{"textAlign":26,"key":1356},"p-127",[1358],{"text":1359,"type":84},"Required service levels.",{"type":185,"attrs":1361,"content":1362},{"level":1308,"textAlign":26},[1363],{"text":1364,"type":84},"The sourcing context",{"type":78,"attrs":1366,"content":1368},{"textAlign":26,"key":1367},"p-128",[1369],{"text":1317,"type":84},{"type":192,"content":1371},[1372,1380,1388,1396,1404],{"type":195,"content":1373},[1374],{"type":78,"attrs":1375,"content":1377},{"textAlign":26,"key":1376},"p-129",[1378],{"text":1379,"type":84},"Market capacity.",{"type":195,"content":1381},[1382],{"type":78,"attrs":1383,"content":1385},{"textAlign":26,"key":1384},"p-130",[1386],{"text":1387,"type":84},"The make-or-buy decision.",{"type":195,"content":1389},[1390],{"type":78,"attrs":1391,"content":1393},{"textAlign":26,"key":1392},"p-131",[1394],{"text":1395,"type":84},"Current category spend.",{"type":195,"content":1397},[1398],{"type":78,"attrs":1399,"content":1401},{"textAlign":26,"key":1400},"p-132",[1402],{"text":1403,"type":84},"Existing supplier relationships.",{"type":195,"content":1405},[1406],{"type":78,"attrs":1407,"content":1409},{"textAlign":26,"key":1408},"p-133",[1410],{"text":1411,"type":84},"Opportunities for supplier consolidation.",{"type":78,"attrs":1413,"content":1415},{"textAlign":26,"key":1414},"p-134",[1416,1418,1424],{"text":1417,"type":84},"Your team can use ",{"text":1419,"type":84,"marks":1420},"spend analysis",[1421],{"type":130,"attrs":1422},{"href":1423,"uuid":26,"anchor":26,"target":133,"linktype":63},"https://www.spendesk.com/blog/spend-analysis/",{"text":1425,"type":84}," to identify where money currently goes, which suppliers you already use, and where you may negotiate better terms by consolidating spend or suppliers before approaching the market.",{"type":185,"attrs":1427,"content":1428},{"level":465,"textAlign":26},[1429],{"text":1430,"type":84},"3. 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In the University of Mannheim’s 2023 State of the Procurement Profession survey, which covered 409 respondents:",{"type":192,"content":1450},[1451,1459,1467,1475,1483],{"type":195,"content":1452},[1453],{"type":78,"attrs":1454,"content":1456},{"textAlign":26,"key":1455},"p-138",[1457],{"text":1458,"type":84},"Cost ranked first at 33%.",{"type":195,"content":1460},[1461],{"type":78,"attrs":1462,"content":1464},{"textAlign":26,"key":1463},"p-139",[1465],{"text":1466,"type":84},"Quality ranked second at 22%.",{"type":195,"content":1468},[1469],{"type":78,"attrs":1470,"content":1472},{"textAlign":26,"key":1471},"p-140",[1473],{"text":1474,"type":84},"Delivery followed closely at 21%.",{"type":195,"content":1476},[1477],{"type":78,"attrs":1478,"content":1480},{"textAlign":26,"key":1479},"p-141",[1481],{"text":1482,"type":84},"Sustainability and flexibility attracted less weight.",{"type":195,"content":1484},[1485],{"type":78,"attrs":1486,"content":1488},{"textAlign":26,"key":1487},"p-142",[1489],{"text":1490,"type":84},"Innovation ranked last.",{"type":78,"attrs":1492,"content":1494},{"textAlign":26,"key":1493},"p-143",[1495],{"text":1496,"type":84},"Apply supplier checks across four areas:",{"type":192,"content":1498},[1499,1511,1523,1535],{"type":195,"content":1500},[1501],{"type":78,"attrs":1502,"content":1504},{"textAlign":26,"key":1503},"p-144",[1505,1509],{"text":1506,"type":84,"marks":1507},"Commercial and financial:",[1508],{"type":293},{"text":1510,"type":84}," Assess value for money and financial health.",{"type":195,"content":1512},[1513],{"type":78,"attrs":1514,"content":1516},{"textAlign":26,"key":1515},"p-145",[1517,1521],{"text":1518,"type":84,"marks":1519},"Operational:",[1520],{"type":293},{"text":1522,"type":84}," Check quality, reliability, capacity, and technical capability.",{"type":195,"content":1524},[1525],{"type":78,"attrs":1526,"content":1528},{"textAlign":26,"key":1527},"p-146",[1529,1533],{"text":1530,"type":84,"marks":1531},"Risk:",[1532],{"type":293},{"text":1534,"type":84}," Evaluate operational and reputational exposure alongside data security and compliance.",{"type":195,"content":1536},[1537],{"type":78,"attrs":1538,"content":1540},{"textAlign":26,"key":1539},"p-147",[1541,1545],{"text":1542,"type":84,"marks":1543},"ESG:",[1544],{"type":293},{"text":1546,"type":84}," Set the weighting before scoring and apply it consistently.",{"type":78,"attrs":1548,"content":1550},{"textAlign":26,"key":1549},"p-148",[1551,1557],{"text":1552,"type":84,"marks":1553},"CIPS supplier-selection guidance",[1554],{"type":130,"attrs":1555},{"href":1556,"uuid":26,"anchor":26,"target":133,"linktype":63},"https://www.cips.org/intelligence-hub/managing-suppliers/supplier-selection",{"text":1558,"type":84}," supports business-viability and operational checks.",{"type":78,"attrs":1560,"content":1562},{"textAlign":26,"key":1561},"p-149",[1563],{"text":1564,"type":84},"ISM’s guidance goes further, requiring evaluation of:",{"type":163,"content":1566},[1567],{"type":78,"attrs":1568,"content":1570},{"textAlign":26,"key":1569},"p-150",[1571],{"text":1572,"type":84},"“Quality, cost, technological capabilities and financial status, as well as weighing layers of risk, including operational, reputational, data security and compliance.”",{"type":78,"attrs":1574,"content":1576},{"textAlign":26,"key":1575},"p-151",[1577],{"text":1578,"type":84},"Add ESG criteria deliberately rather than by default.",{"type":78,"attrs":1580,"content":1582},{"textAlign":26,"key":1581},"p-152",[1583,1588],{"text":1226,"type":84,"marks":1584},[1585],{"type":130,"attrs":1586},{"href":1587,"uuid":26,"anchor":26,"target":133,"linktype":63},"https://www.gartner.com/en/supply-chain/topics/strategic-sourcing",{"text":1589,"type":84}," reports that 83% of sourcing and procurement executives face increased pressure for sustainable-procurement metrics.",{"type":78,"attrs":1591,"content":1593},{"textAlign":26,"key":1592},"p-153",[1594,1596,1602],{"text":1595,"type":84},"However, ",{"text":1597,"type":84,"marks":1598},"EY’s 2022 CPO survey",[1599],{"type":130,"attrs":1600},{"href":1601,"uuid":26,"anchor":26,"target":133,"linktype":63},"https://assets.ey.com/content/dam/ey-sites/ey-com/en_uk/topics/supply-chain/ey-2022-global-ey-chief-procurement-officer-survey.pdf",{"text":1603,"type":84}," found that, while almost 98% of respondents include sustainability measures in supplier evaluations, only 17% make environmental sustainability a priority measure.",{"type":78,"attrs":1605,"content":1607},{"textAlign":26,"key":1606},"p-154",[1608],{"text":1609,"type":84},"Decide the weighting before you score and apply it consistently.",{"type":185,"attrs":1611,"content":1612},{"level":465,"textAlign":26},[1613],{"text":1614,"type":84},"4. 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Testing and proposing follow, before bargaining leads to agreement and closure.",{"type":78,"attrs":1628,"content":1630},{"textAlign":26,"key":1629},"p-157",[1631],{"text":1632,"type":84},"CIPS also insists on establishing your BATNA and walk-away point in advance.",{"type":78,"attrs":1634,"content":1636},{"textAlign":26,"key":1635},"p-158",[1637],{"text":1638,"type":84},"Before negotiations begin:",{"type":1640,"attrs":1641,"content":1643},"ordered_list",{"order":257,"key":1642},"ol-0",[1644,1652,1660,1668,1676,1684,1692],{"type":195,"content":1645},[1646],{"type":78,"attrs":1647,"content":1649},{"textAlign":26,"key":1648},"p-159",[1650],{"text":1651,"type":84},"Define the ideal outcome.",{"type":195,"content":1653},[1654],{"type":78,"attrs":1655,"content":1657},{"textAlign":26,"key":1656},"p-160",[1658],{"text":1659,"type":84},"Set a realistic outcome.",{"type":195,"content":1661},[1662],{"type":78,"attrs":1663,"content":1665},{"textAlign":26,"key":1664},"p-161",[1666],{"text":1667,"type":84},"Establish your fall-back position.",{"type":195,"content":1669},[1670],{"type":78,"attrs":1671,"content":1673},{"textAlign":26,"key":1672},"p-162",[1674],{"text":1675,"type":84},"Identify your BATNA.",{"type":195,"content":1677},[1678],{"type":78,"attrs":1679,"content":1681},{"textAlign":26,"key":1680},"p-163",[1682],{"text":1683,"type":84},"Decide your walk-away point.",{"type":195,"content":1685},[1686],{"type":78,"attrs":1687,"content":1689},{"textAlign":26,"key":1688},"p-164",[1690],{"text":1691,"type":84},"Determine which concessions you can make.",{"type":195,"content":1693},[1694],{"type":78,"attrs":1695,"content":1697},{"textAlign":26,"key":1696},"p-165",[1698],{"text":1699,"type":84},"Clarify which terms are non-negotiable.",{"type":78,"attrs":1701,"content":1703},{"textAlign":26,"key":1702},"p-166",[1704],{"text":1705,"type":84},"ISM found that asking outperforms telling. High-performing negotiators:",{"type":163,"content":1707},[1708],{"type":78,"attrs":1709,"content":1711},{"textAlign":26,"key":1710},"p-167",[1712],{"text":1713,"type":84},"“Ask three times as many questions and talk two-thirds less than their counterparts.”",{"type":78,"attrs":1715,"content":1717},{"textAlign":26,"key":1716},"p-168",[1718],{"text":1719,"type":84},"ISM also advises giving concessions reluctantly. It recommends prioritising concessions that cost you little but carry high value for the supplier.",{"type":78,"attrs":1721,"content":1723},{"textAlign":26,"key":1722},"p-169",[1724],{"text":1725,"type":84},"Harvard’s Program on Negotiation adds a caution against defaulting to competitive bidding for everything. Businesses that procure via auctions pay 3% to 5% more than those that enter exclusive negotiations with a single vendor.",{"type":78,"attrs":1727,"content":1729},{"textAlign":26,"key":1728},"p-170",[1730],{"text":1731,"type":84},"Where relationship and service quality matter, an auction:",{"type":163,"content":1733},[1734],{"type":78,"attrs":1735,"content":1737},{"textAlign":26,"key":1736},"p-171",[1738],{"text":1739,"type":84},"“Often can be a bad idea.”",{"type":78,"attrs":1741,"content":1743},{"textAlign":26,"key":1742},"p-172",[1744],{"text":1745,"type":84},"Use competitive negotiation for leverage items. 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Spendesk centralizes spend with approval workflows, company debit and virtual cards, and automated receipt capture so finance teams gain real-time visibility, eliminate lost receipts, speed reconciliation, and enforce budgets for accurate bookkeeping.",{"_uid":2346,"title":2347,"component":2338,"description":2348},"bb75b6e1-fbc5-4448-802f-3f200ad197a0","How does Spendesk work?",{"type":75,"content":2349},[2350],{"type":78,"content":2351},[2352],{"text":2353,"type":84},"Spendesk is a spend-management platform that issues company debit and virtual cards, manages purchase requests and approval workflows, and automates expense claims and invoice reconciliation. Spendesk captures receipts via its mobile app, enforces spending limits, and provides real-time dashboards and exportable reports so finance teams prevent overspend and close books faster.",{"_uid":2355,"title":2356,"component":2338,"description":2357},"4838d6bb-e56e-4f09-899c-58a7e69ba522","What are the most common procurement methods?",{"type":75,"content":2358},[2359],{"type":78,"content":2360},[2361],{"text":2362,"type":84},"Common procurement methods include competitive bidding (RFP), direct purchase, request for quotation, and framework or blanket agreements. 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