This article is written by Stacia Copple and Harry Webb, Digital and Agile Procurement Specialists at Curshaw, a digital procurement consultancy.

We are taught in “Procurement School” that market engagement is important, but do we actually do it right?

Traditionally we, procurement folk, communicate with the market when we need something — this is often done via an advert. There is little two-way communication with our prospective vendors.

We ask interested parties to fill in forms on “eTendering portals”. Rarely do we visit a potential supplier to understand how their products and services can help us.

We often tell the market of our future intentions and how we plan to design the solution. There is little appreciation for new ideas and innovation.

It’s a very tactical, reactive approach that overlooks the primary purpose — developing relationships and an understanding of how services can be provided on the right commercial terms to meet user needs.

We think procurement practitioners can do more.

The market needs procurement people just as much as the same procurement people need the supply market. It's a simple supply and demand conversation. Our hope in writing this is to get you thinking about that dynamic, and point to ways these advantages can be incorporated into your market engagement strategy as a new opportunity for commercial success.

1. Publish your documentation, and publish it regularly

This is really useful, especially if the document is likely to be contractual. It helps interested parties understand what you might need from them in the future. Done right, it won’t breach confidentiality or commercial sensitivity.

If information changes within a document, provide an updated version as soon as practically possible. Don’t keep the market waiting – it will only keep them guessing. Do you really want a future supplier to provide information based on guesswork?

Be clear: use a structured approach and provide context for your upcoming projects — think of your outline business case and include potential difficulties. You could use blogs or social media posts to give further information about your organisation's objectives.

Be informative: let the industry know when you plan to launch the procurement activity, how the contract might look and what the contents are likely to be — if you can’t publish the full contract provide an executive summary. Being open will increase competition and encourage SMEs to participate.

Key takeaway: This approach also helps future proof your services by allowing potential suppliers to look at what you have done in the past and what you are doing at present. Historical information really does help suppliers understand your needs.

2. A constant cycle of market feedback is crucial

The most important thing is to have an easy to use and open feedback loop. Your feedback loop should cover:

  • What it is you’re trying to do

  • How you are going to engage the market (online or in-person)

  • How you gather and record the feedback from the market

  • How you bring your learnings back into your project (mindful of timing)

  • How you can share this

You should repeat this. Doing so allows for development and iterations of documents. It also gives you an opportunity to consider:

  • Is our approach correct?

  • Do we have enough time?

  • Are there any start-ups on the horizon?

  • Is there a new market for something?

  • What are the burning constraints in the market?

Key takeaway: Move from thinking about one-way market messaging to two-way industry engagement - more listening to suppliers is needed.

3. Hold engagement events

The most productive method for sustainable market engagement is to hold an event where prospective suppliers and contributors can share ideas, develop strong co-working relationships and work on the issues at pace.

However, the practicalities of this are sometimes not possible. We wanted to share with you some practical advice on how to run an engagement event.

Of course, you’ll need to be mindful of confidentiality and commercial sensitivity but in our experience the more that can be shared, the better the result. The alternative is asking for quality proposals based on limited information — do you genuinely believe you'll get one?

So how do you hold a successful market engagement event? Below is a step-by-step guide with our/my top tips.

Step 1: Ascertain your audience

Ask yourself, who do you want at your event and why?

Use every (compliant) tool and technology at your disposal to best reach your goal: from ways of advertising to webinars. Describe who you would like to engage with through an “Expression of Interest”, which suppliers can respond to.

The market engagement “feedback loop” starts at Step 2 and continues in Steps 4, 5 and 8. As you can see it’s not one discussion, it’s a continual one. It drives a partnership approach, a method of collaboration that continues into contract management. What this also gives you and others is evidence and importantly, ASSURANCE of your decision-making.

Do you need just attendees from the market or do you need advice from the industry?

Key takeaway: Consider the economy and efficiency of your event in scale with the requirements of your project.

Step 2: Advertise your event.

Now you know your audience, you want a good turnout for your event.

Advertising gives potential attendees time to consider whether their attendance is useful to them. It allows them to plan their own logistics and consider the financial overhead needed (especially important for SMEs).

Think of your communication channels — and like Part 1, “Be Clear” and “Be Informative” with the approach you’re taking, the process you’ll follow, etc. The feedback loop should start at this stage to ensure interested parties can contribute to the next iteration of documents.

Key takeaway: consider a separate email address or group mailbox for this and ensure it is monitored.

Step 3: Share information prior to the event.

You need to think about what information you can share openly prior to the event.

This could be in your advert or somewhere else. We think the best place for your initial “soft engagement” is on a blog in an open format and has a wider reach. This is the procurement person's shop window. It should be free and easy for potential suppliers to browse.

Allow sufficient time for interested parties (people) to read this prior to the event. Whatever you do, ensure you place the word “DRAFT” everywhere. Cover yourself.

Key takeaway: consider promoting and publicising using social media.

Step 4: Pre-event question period.

Ask suppliers to send questions in advance of step 5 (Hold a preliminary event)

Consider using a structured approach with an online questionnaire or interactive forum.

Could you use technology to collate and broadcast all of the questions in one place rather than using email and spreadsheets?

Share and discuss the questions with both your internal working group and attendees prior to the event (this can be done via the blog).

Step 5: Hold a preliminary event.

This informing style allows you to share the ideas, documents and direction you have created so far. This event is for potential suppliers to see and hear about your needs and the work you have done (to date) regarding what is needed from the industry.

This is an opportunity to talk through the problem to be solved. A few years ago it was common practice to run these events with people in attendance. However, remote working and with the enforced changes to working practices technology should be considered first.

Making market engagement as open as possible will make procurement better

If you anticipate a large attendance from suppliers, specific webinar software may be more suitable to manage the event (automatic muting, registration, supplier anonymity and presenting visual documents). Zoom or Webex are effective software services for large webinars.

Allow 20-25 minutes to articulate the project. Explain your current approach and timescales for the project. Then allow for questions. Using the chat box function on the software you’re using is helpful in capturing everything being asked.

Keep the event to a maximum of two hours and allow for a comfort break.

Key takeaway: have a host, presenter and note taker as part of your internal team. This will help with managing attendees on the call and capturing all questions and answers.

Step 6: Update information from event questions.

Collate the data and update your strategy to reflect your findings. This could be an opportunity to feedback to internal stakeholders and adjust business cases or seek approval.

Key takeaway: Remember to be open with what you have discovered.

Step 7. Facilitate a formal event.

Use “round tables” to ask the market for advice on key aspects of the project (e.g. your approach and timescales).

Key areas:

  • needs

  • technical requirements

  • development

  • delivery lifecycle

  • commercial

  • legal

  • tender documents

Key takeaway: give consideration if physical space is limited, it is ok to restrict an organisation to have only two representatives.

Step 8: Final strategy and feedback

Focus on transparency; send the market engagement attendees a document of your updated procurement strategy. You may want to create an updated blog to articulate this.

Key takeaway: Be clear on what you're doing going forward and why, give indicative dates to suppliers.

In conclusion

Making market engagement as open as possible, will make procurement better. Strategically engaging with your market will reduce risk and allows you to flush out potential issues beforehand.

Ultimately good market engagement will enhance all areas of your project; strategy, approach, requirements and value for money.

Curshaw helps organisations transform the way they provide commercial services by using agile ways of working to meet the needs of services users throughout the commercial life-cycle — from procurement to contract expiry, through to re-procurement. — Stacia Copple and Harry Webb

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