- When you plan a procurement you should define your procurement strategy.
- Start by analysing your business need.
- The next step is to analyse and engage the market.
- Once you’ve done this, you can draw all your analysis together to define a strategy for success.
Plan a procurement strategy
The 3 steps below will help you come up with a procurement strategy that best meets your agency’s requirements and needs.
You should also make sure you inform your approach by engaging with industry where possible.
P1 Analyse the business need
Your business need is likely to be multi-dimensional. You need to consider both your current and future requirements.
To do that, follow these key steps:
- assess the value of your spend on the procurement category or type, and it's importance (risk) to determine whether the spend is critical for your agency
- identify and understand your internal stakeholders' needs
- engage those stakeholders to win their commitment to your procurement strategy
- brainstorm different ideas on what your agency requires from the procurement and explore alternatives for delivering the same outcome
- determine and agree to the business or agency need.
NSW Procurement resources
We’ve created the following resources to help you identify the business need.
- PRACTISE – Needs assessment tool XLSX, 290.54 KB
- Desired outcome statement XLSX, 193.67 KB
- Risk assessment tool XLSX, 165.23 KB
- Supply positioning tool XLSX, 208.05 KB
- Stakeholder analysis tool XLSX, 99.31 KB
- Cost levers and drivers XLSX, 156.74 KB
P2 Analyse and engage the market
To get the best outcome from procurement, you must understand the dynamics of the supply market and engage with it effectively.
Make sure you:
- have a clear profile of the supply market. Where possible, try to identify any key drivers likely to shape the market over the next 12-to-36 months
- identify and understand new and innovative solutions in the supply market that have the potential to deliver better value for money
- assess the balance of power between your agency and the market.
To achieve this:
- identify any existing agreements of which you may be able to use, whether they are whole-of-government or agency-specific with piggyback clauses
- undertake a thorough analysis of the supply market
- engage with the supply market making sure you comply with probity principles.
The third step has the potential to deliver the most innovative and cost-effective solutions. You should engage with industry around particular problems or opportunities at each stage of the procurement lifecycle.
Read more about the formal process of industry engagement.
NSW Procurement resources
We’ve created the following resources to help analyse and engage the market:
- Supplier preferencing tool XLSX, 141.7 KB
- Porters Five Forces analysis guide PDF, 153.28 KB
- Balance of power tool XLSX, 181.54 KB
- NSW Procurement Board Industry Engagement Guide PDF, 366.88 KB
- Market Approaches Guide PDF, 602.98 KB
- Market summary tool XLSX, 141.88 KB
- Request for information template DOCX, 920.61 KB
P3 Finalise procurement strategy
To be successful, you should develop a strategy that considers your business needs, market dynamics, risks and opportunities.
To finalise your procurement strategy:
- summarise your key findings on your agency or business needs, the supply market, risks and opportunities
- determine how critical the project is to your business and which opportunities you should prioritise
- understand your strategic options for getting value for money in:
- approaching the market
- defining success
- managing risk.
- identify the benefits that should flow from the project
- define your strategy and develop a plan for achieving it
- make sure you have enough support for the strategy within your organisation
- have the appropriate delegate and/or stakeholder groups sign off on it.