February 2022

A Procurement Plan is a document that sets out the intended strategy for how procurement will be carried out before any significant procurement actions are performed. A Procurement Plan defines the products, services and works that you will obtain from external suppliers. A good Procurement Plan will go one step further by describing the process you will go through to appoint those suppliers contractually. Whether you are embarking on a project procurement or organizational procurement planning exercise, the steps will be the same. First, define the items you need to procure. Next, define the process for acquiring those items. And finally, schedule the timeframes for delivery. An effective plan provides a framework to guide procurement officers in the achievement of their tasks and duties. Practitioners, who do not plan, have already planned to fail. When individuals use effective procurement plans in the execution of their functions, they are more organized, effective and efficient in effecting positive changes and growth in their organizations. This growth and change exposes the procurement officers relevance and reliability in the achievement of duties and responsibilities assigned to his office, thus, producing the necessary measures which would provide the basis for achieving the spirit and intent of the procurement law of 2005. When to use a Procurement Plan It is advisable to create a Procurement Plan whenever you want to purchase items from suppliers. Using the Procurement Plan template, you can define the procurement requirements, identify potential suppliers, contract those suppliers and manage them to ensure delivery. Project Procurement Planning is critical to the success of any project. This Procurement Plan template helps you to perform these steps quickly and easily.

Here are some ways you can encourage your respondents to complete your surveys: 1. Introduce your objective. Provide context with a brief sentence. Tell survey takers why you‘re asking these questions and how their feedback will help, e.g. ―Your suggestions will help us to better understand how we can deliver the services you want most.‖ 2. Keep it short and focused. Make sure each question brings you closer to your goal. Respect survey takers‘ time, and word questions clearly. 3. Pre-test your survey. Pre-test your survey with a few members of your intended audience. You might uncover inconsistencies or unexpected question interpretations. 4. Keep rating scale questions consistent. If you‘re using Likert rating scales, use the same points system throughout your survey. If 1 means ―extremely satisfied‖ and 5 means ―extremely dissatisfied,‖ maintain this scale for all quest

Market surveys are an important part of market research that measure the feelings and preferences of customers in a given market. Varying greatly in size, design, and purpose, market surveys are one of the main pieces of data that companies and organizations use in determining what products and services to offer and how to market them. STEPS IN MARKET SURVEY These steps will teach you the basics of how to make a market survey and offer tips for optimizing your results. 1. Clarify the goal of your market survey. Before starting any planning, be certain what the goal of your market survey is. What do you want to find out? Do you want to try to assess how well your market will accept a new product? Maybe you want to figure out how well your marketing is working or reaching its designated audience. Whatever it is, be sure that you have a clear goal in mind. For example, imagine that you own a company that sells and repairs computer equipment. Your goal with a marketing survey might be to figure out how many students at a local college know about your business and how likely they would be to buy from you for their next computer purchase or repair. 2. Determine and define the nature, extent, and size of your market. Before conducting a survey in a given market, you need to know what market you’re targeting. Choose geographic and demographic parameters, identify customers by types of product, and get an idea of how many people there are in the market. Narrow your market research to a short list of desired data: buying habits, for example, or average income. For the computer repair business, this is fairly simple. You would be looking at college students. But, you could potentially try to focus on higher-income or more tech-focused students that could afford to buy more from you. 3. Determine what aspects of the market you want to investigate. This will depend entirely on your marketing goals and there are a large variety of options here. If you have a new product, you may want to figure out how well it is recognized or desired in a given market. Alternately, you may want to know about the specific buying habits of your market, like when and where and how much they buy. Just be sure to have a clear idea of what you want to find out. Also clarify what type of information you want. Do you want quantitative information to show investors or qualitative information to give you suggestions to improve your business? You may also wish to figure out specifically what drove your previous customers to buy your product. In this case, be sure to ask recent buyers (within the last month) specific questions about their buying experience and how they heard about your product. You can amplify what these buyers found successful and fix any issues they experienced.[ For the computer repair example, you could focus on how likely your previous customers are to return to you or how likely new customers would be to come to you rather than a competitor. 4. Find out where and when you can reach customers in your market. You might conduct a survey at the mall or on the street, via telephone, online, or through the mail. Your results may change based on the time of day and year. Choose a method and time that best suits your research. Be sure to keep your target audience in mind, especially with online surveys. Your target market, especially if they are older, may not be accessible through online channels. For example, the computer repair business might decide to interview students in person in a central location on campus or online through a commonly-visited website. 5. Consider online survey platforms. Online survey platforms offer a cost-effective way to organize your survey and survey results. Simply search for these platforms online and compare several that you find to assess which one offers the right tools for your survey. Just make sure that your choices are reputable survey platforms. You should also consider whether or not your target market is computer-savvy enough for online surveys to be effective.

Market sounding is a technique used to assess the reaction of the market to the proposed procurement activity and approach. It should be undertaken in conjunction with supply market analysis and brings early collective perspectives from suppliers. Market sounding is undertaken through direct communication with potential suppliers, whereas supply market analysis uses primary documentation and secondary sources to gain information. Market sounding should not be used as a substitute for supply market analysis. Market sounding should lead to an understanding of the attitude, thoughts and likely response by the market as a whole to the proposed procurement activity, through discussions with multiple individual suppliers. It can make the procurement process more specific, accurate and efficient, as well as shorter. Market sounding does not include elements of supplier selection or offer evaluation, nor does it create commitments of any kind on the part of the agency or agencies managing the project, or the suppliers involved. Market sounding can be particularly useful when: Doubt exists over the existence, capacity, capability, competitiveness or maturity of a market The project outcome sought or the procurement specifications are complex or innovative There is uncertainty over the level of supplier interest There is a need to manage market expectations. A key aspect of market sounding is that it can assist procurement officers translate desired outcomes into a high-level statement of business requirement that is well aligned with the market, which makes it much more likely that the desired outcome will be achieved.

A market study (also known as market analysis, market assessment, market sounding, market research, etc.) is useful when defining requirements; preparing budgets; choosing procurement method; planning and scheduling the procurement of goods, services and works; evaluation of bids/proposal, and sometimes to justify contract amendments. Analyzing supply markets for purchasing is a technique used to identify market characteristics for specific goods and services and provides information that assists in planning the purchase. It enables the department to understand: How the market works; The direction in which a market is heading; The competitiveness of a market; Potential suppliers; Existing goods or services that may satisfy the requirement; Anticipated costs and timeframes; and Lessons learnt from other users of similar goods or services. Research and analysis To develop an understanding of a supply market, research and analysis is undertaken to determine: the number of suppliers and their respective market shares (market structure) the degree and type of competition between suppliers the nature and quality of the supply chain the potential for substitute or alternative goods or services the agency‘s value as a customer (supplier referencing) Sustainability and other broad market ‗context‘ factors (e.g. political, economic, social/cultural, and technological) affecting the supply market. WHY UNDERTAKE MARKET RESEARCH? Thorough analysis of the market may assist to: 1. Help define requirements and strategies Undertaking planning and analysis prior to preparing tender documentation is the foundation of a good specification, selection and contracting process. Planning and analysis is particularly important when developing complex requirements. The accuracy and detail of the definition is likely to improve as you collect and analyze information. A poor description of requirements may mean that the product or service is not delivered as required. There are a number of reasons for analyzing supplier markets: Better knowledge of supplier strategy Manage risk to the contracting authority More informed contracting authority Allows for the identification of opportunities to advance Government priorities 1. Better knowledge of supplier strategy Understanding how individual suppliers operate, their market position, why they want to deal with the contracting authority and understanding their longer term goals helps obtain value for money. Analyzing supply markets may: Provide valuable information about suppliers‘ strengths and weaknesses. For example, the contracting authority may discover that a particular supplier is keen to win a Government contract or a supplier may have difficulty fulfilling orders. Identify comparable substitute goods and services that may be available from more competitive and less risky supply markets and could offer better value for money Understand which suppliers are more technologically advanced in particular sectors Identify opportunities to better manage the supply chain1 that will reduce the cost of purchasing goods or services Allow the contracting authority to become aware of all potential suppliers (in a market with a limited number of suppliers, it is advantageous for the contracting authority to encourage all suppliers to tender). Provide a sound understanding of the contracting authority‘s attractiveness as a customer for the supplier. The more important the contracting authority is to the supplier in terms of the business generated the more likely better service and price becomes available from that supplier. Tip -Browse the Current Tenders and Contracts Awarded sections for similar tenders on the Tenders website. Speak to other departments and review your own department’s tender history. 2. Achieve value for money Undertaking market research will assist in achieving value for money through: the identification of comparable substitute goods and services; the identification of alternative processes, such as leasing rather than purchasing; developing an understanding of how suppliers determine their pricing strategies; and Identifying how competitive the market is. Tip -Try talking directly to potential suppliers. 3. Manage risk for the contracting authority Analyzing supply markets assists in determining the risks involved in purchasing particular goods or services. It can also identify ways to manage these risks. Analyzing supply markets may: Assist in the development of specifications to encourage competitive offers and reduce the possibility of purchasing goods or services which are not fit for purpose. Specifications are often set which are too restrictive and reduce the number of potential suppliers. This is often the result of a limited knowledge of alternatives. Identify opportunities to increase the base of suppliers to meet the needs of contracting authorities. More informed contracting authority One of the aims of the procurement management reform process is to help create a more informed contracting authority. With market analysis, the contracting authority understands how technology and other factors are driving changes in the market for the particular goods or services it requires. The contracting authority understands how goods and services are priced and how service quality and standards are set by suppliers. Contracting authorities who understand markets and suppliers are better able to develop tenders which reflect conditions in that market. Indeed they are able to help develop the market or suppliers so it can provide the goods or services necessary to the functioning of the contracting authority. They are also able to deal with suppliers on a more equal basis when contracts are in place. An informed knowledge of the market and the capabilities of suppliers can help bring a better approach to achieving whole of government objectives when contracting authorities are tendering. Thus, an informed knowledge of the ICT sector may allow for a tender which seeks an innovative response from the small business software sector. A better understanding of changes in environmentally friendly technology could help improve environmental outcomes from procurement. 4. Allow for the identification of opportunities to advance government priorities Government policy requires value for money outcomes from procurement and this can include achieving whole of Government objectives. Procurement can assist in the development of environmental or social initiatives or it can become a force for innovation and help support small and medium enterprises to develop their potential. Understanding the market can assist in minimizing risks by: constructing specifications that promote competitive offers; ensuring contractual clauses are sufficient in the current environment; identifying any legislation or standards to which the goods or services

Supply market analysis is a technique used to identify market characteristics for specific goods or services. It provides information to assist with developing potential procurement strategies and is particularly useful for projects which are innovative in nature; complex; or are characterized as high risk. This activity should be conducted in conjunction with demand analysis. Benefits of supply market analysis 1. Supply market analysis can provide a strategic understanding of how a market works; the direction in which the market is heading; its competitiveness; the existence of adequate capacity; who the key suppliers are; the value that suppliers place on the agency as a customer; and the sustainability opportunities and performance within the market. 2. The information gathered through supply market analysis helps to manage risk by identifying and analyzing potential supply difficulties associated with suppliers or the market. 3. It can also assist in developing strategies to shape the market in a way that will increase the supply base; potentially increase competition; provide innovative responses to constraints or opportunities; and progress sustainability objectives. 4. The results of this analysis can help the buyer to improve and shape the strategy and tendering process and align their behavior in order achieve better value for money, reduced prices or an improved service. 5. Marketing surveys are a great way to ask for feedback on new products, services, and features.

Market surveys help businesses make better decisions about the types of products and services they offer, prices, how to deal with competitors and whether to enter or exit markets. Analysis of market surveys can prevent a business from making a costly mistake such as launching a new product or service that doesn’t fulfill a need in the market, getting into a market that is saturated with competitors and setting prices too high or too low. Surveys can help entrepreneurs assess the viability of new ideas.

Market surveys can be administered in several ways. Paper surveys or questionnaires that businesses hand out in public or mail to consumers are common forms of market surveys. Businesses such as restaurants and service companies often use questionnaires to gather feedback about consumer experience. Some businesses conduct oral market surveys over the phone, while others conduct surveys electronically via email, on official websites or through third-party websites dedicated to market surveys.

Market research describes the gathering and analysis of market data, such as consumer preferences, trends in market prices and the presence of competing products. A market survey can describe any study that gathers information directly from consumers by asking them questions about their preferences, habits and experiences. The purpose of a market survey is to provide business managers with insight about their target customers, such as how much money they spend on certain types of products, whether they use competing products and the interest level for new products.

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