|
Supplying Principles and Practices > USPS Supplying Practices Process Step 1: Identify Needs > Involve Suppliers Early
Involve Suppliers Early
Involving suppliers early (ISE) is the process of assessing the reaction of
potential suppliers to an identified need. ISE can reveal the prevailing
attitudes and solutions in the market as a whole and contribute to a more
effective requirement that is well aligned with the market, improving the
likelihood that the desired outcome will be achieved, and can also elicit
alternative approaches and innovative solutions,.
ISE provides supplier perspectives at the earliest stage of the purchasing
process. While it ordinarily is directed at groups of suppliers to get a variety of
inputs, individual suppliers can also be targeted for input. This process is for
information gathering exclusively; it is not used for supplier selection or
proposal evaluation, and there are no commitments made on either side.
There is no set process for ISE; the nature of the purchase will affect the
process in each case. The following are some suggested basic steps:
First, the Purchase/SCM Team should attain knowledge of the market as a
whole. The Team should have a thorough and accurate picture of the market
when preparing to talk to suppliers. When deciding on which suppliers to
initiate communications with, the Purchase/SCM Team should seek to identify
industry leaders in the relevant marketplace, as well as incumbent Postal
Service suppliers if available. The key areas of focus are:
• Feasibility - whether what is sought is feasible or has ever been
done
• Capability - the ability of the market to provide what is required
• Maturity - whether there is an established market and whether
there are enough suppliers in existence to provide competition
• Capacity - whether the market can provide what is required on a
large-enough scale and in a timely manner
After identifying key focus areas of the market, communications focus on
important factors such as the likely level of market interest, the technical or
business feasibility of what is proposed, best value, supply cycle time, and
whether unexamined business options exist. Additionally, the following should
be examined:
• What capabilities exist in the marketplace to fulfill this need?
• Are there other, better approaches or solutions that have not
been considered?
• What other technologies are available?
• What are the main concerns? Are there issues that have been
missed?
• Extent to which subcontracting will be necessary
Effective, two-way communication is essential to ISE. Postal Service needs
must be defined in enough detail that suppliers can respond effectively, but
needs should also be general enough to allow suppliers to propose
alternative solutions. The following will help foster the necessary business
relationship:
• Work with suppliers as equals and stakeholders
• Avoid an "us vs. them" mentality
• When necessary, provide a guarantee of confidentiality
• Speak in terms of what the Postal Service and the supplier can
achieve together, rather than what the supplier can do for the
Postal Service
• Maintain flexibility and openness about new approaches
ISE can provide numerous benefits, and as a result the purchase/SCM Team
can:
• Establish that there is a market for the requirement
• Confirm that the scope and objectives of the purchase are sound
and achievable
• Discover new, innovative, or alternative solutions
• Underscore potential issues or problems with the project
• Gain real-world, first-hand knowledge of what suppliers can and
cannot do
• Package the need in a way so that the market is encouraged to
respond and that real competition is stimulated
• Create a requirement that is well framed, focused, feasible, and
likely to interest the market
• Identify potential market areas
• Manage supplier expectations
• Manage Postal Service expectations
• Lay useful foundations for contract and relationship management
by considering how the arrangement may work, including whether
multi-supplier groups may respond to the requirement
Suppliers may also derive benefits from ISE. Suppliers can:
• Assess whether the opportunity will be suitable when it is solicited
• Reduce overhead in researching new business avenues
• Contribute to market-focused specifications
• Raise issues and questions about the opportunity and the
purchasing process options at an early stage
• Gain a valuable insight into Postal Service working practices,
requirements, and priorities
|
