E-Procurement on large tenders: advantages and disadvantages for European contractors. April 2015
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1 E-Procurement on large tenders: advantages and disadvantages for European contractors April 2015
2 Agenda Background Tendering truths Advantages of etendering Example of etendering in practice etendering futures Q&A Slide 2 / 36
3 Background / Experience
4 Background/Experience Over 30 years in the construction industry Experience is on the buy (Client) side of the industry Led the use of etendering in the procurement for Slide 4
5 BravoSolution at glance BravoSolution is a leading international provider of esourcing solutions. We support our clients in the improvement of procurement processes through innovative web-based technologies and services SOLUTION STRENGTH Top rated Full Suite solution offering Full complement of services to support sourcing initiatives Quick Time-to-Value GLOBAL SCALE More than 600 professional located in 18 offices (Europe, U.S., Asia, Middle Est and Australia) More than 600 customers More than buyers in 70 countries FINANCIAL STRENGTH 11 years consecutive with profitable performance Backed by (>5Bln ) primary Industrial Shareholder ALL RIGHTS RESERVED - Confidential 5
6 Tendering truths 6
7 Tendering - Clients viewpoint Costly exercise with uncertainty and risk Slide 7
8 Tendering - Clients viewpoint Public sector Mandated to obtain Value for Money (VfM) Increasingly looking at soft issues for example Sustainability Equalities and Diversity Private sector Maximising shareholder value Increasingly looking at Corporate Social Responsibility (CSR) for example Sustainability Apprenticeships Slide 8
9 Tendering - Clients viewpoint Clients want a robust well run process Robust tender process Robust, accurate evaluation Certainty that the best supplier is appointed Cheapest price is rarely the right answer Slide 9
10 Tendering Significant effort and resources required by all parties Process is as good as the individuals involved 10
11 Advantages of etendering 11
12 Etendering Advantages Single version of the truth Secure and auditable tender process Secure and auditable tender communications 12
13 Etendering Advantages Transparent and auditable evaluation Increased efficiency for all parties Ability to do more with less 13
14 Etendering in practice 14
15 Crossrail 28 existing surface stations upgraded (11 major reconstructions) 90km of existing surface network upgraded 8 major sub-surface stations 21 km of new sub-surface twin-bore railway through London 15
16 Crossrail Benefits 42bn+ 14,000 people 24 Trains p.h. Slide million journeys per year
17 Crossrail in Numbers CROSSRAIL IS THE BIGGEST CONSTRUCTION PROJECT IN EUROPE FUNDING ENVELOPE TO DELIVER CROSSRAIL 14.8 BILLION 40 WORKSITES IN LONDON AND THE SOUTH EAST MILLION WORKING HOURS ALREADY SPENT ON THIS PROJECT CONSTRUCTION TIMELINE Slide 17
18 Crossrail Procurement in numbers 103 major civil engineering contracts 8 systems contracts > 2,000 contracts let Slide 18
19 Etendering system Supplier 2 nd home page & tender details page Slide 19
20 Etendering system Supplier 2 nd home page & tender details page Slide 20
21 Etendering System Slide 21
22 Etendering systems Slide 22
23 Etendering systems Slide 23
24 Etendering systems Slide 24
25 Etendering systems Slide 25
26 Etendering systems Slide 26
27 Etendering systems Slide 27
28 Etendering systems Slide 28
29 Etendering systems Slide 29
30 Etendering systems Slide 30
31 Etendering systems Slide 31
32 Etendering systems Slide 32
33 Etendering systems Slide 33
34 Etendering systems Slide 34
35 Etendering systems Slide 35
36 Etendering systems Slide 36
37 Etendering systems Slide 37
38 Etendering systems Slide 38
39 Etendering systems Slide 39
40 Etendering systems Slide 40
41 Etendering futures 41
42 Etendering Futures Usage will continue to grow EU Directive mandates etendering Increased efficiency Increased transparency Increased reliability of results The world is moving to electronic everything BIM will drive adoption but also change the process Slide 42
43 Q&A 43
44 The value of etendering for Global General Contractors I GOVERNANCE etendering solutions: Allow to set rules and specific workflows Guarantee traceability and transparency for the market and clients Give visibility on the purchase activities to the Center and full autonomy at the worksite II KNOWLEDGE SHARE All Buyers can: Access all information on all events managed with etendering solutions Identify best practices for conducting their procurement process and interact with colleagues on specific topics (prices, contracts, discounts etc.) Search and enrich supplier information (state classification, to contribute to the qualification and performance evaluation) III EFFICIENCY The users of the full software suite: Obtain several intangible organizational benefits such as: Increase in responsibility and faster access to data for rapid decision-making Time reduction and efficiency in data entry and homogenous reporting according to global standards..and tangible benefits, like cost cutting of indirect costs (costs for resources, the cost of the offices, storage costs etc...) IV COMPETITIVENESS The General Contractors who use etendering can also: Reach more vendors, producing more competitive bids Improve the commercial margins of the project (better purchasing costs) Aggregate (more easily) purchase volumes on specific categories Contribute to bid-to-bid phase creating local databases (prices and suppliers) to submit more competitive offers to acquire new business ALL RIGHTS RESERVED - Confidential 44
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