Collaboration is an effort wherein there is cooperation. It definitely makes a difference when this word is joined with the word “procurement”. Collaborative procurement emphasizes four initiatives with benefits of collaborative procurement strategies that should be considered:
1. Internal Department Collaboration
Collaborative procurement within an internal department is a situation that happens in an organization wherein a versatile team gets to collaborate in every aspect of the project. The set-up includes the involvement of the procurement department in the beginning stages of the said project. Internal departments are also given a voice in deciding which supplier to choose. There is a balance in delivery, cost, service, source flexibility, and quality.
2. Supplier Collaboration
It’s high priority for advanced departments in procurement to collaborate with their suppliers. They need to participate in collaborative procurement so that they could have more innovative ideas and improvements. This gives the company a competitive edge.
3. Procurement Organization Collaboration
An alliance is formed between small organizations and large organizations so that the smaller company could get huge discounts from target suppliers. The alliance gives leverage to the smaller organization. Through collaborative procurement options with larger organizations and through the combination of their purchase requirements, they could already buy services and products at a much cheaper price. This collaborative model yields lower costs in purchases.
4. Mission-driven Organization Collaboration
By collaborating with mission or cause-driven organizations, a company could exhibit itself as a good example and as a helpful element in society.
Construction procurement is a very lucrative endeavor for small businesses that specialize in this field. With the right collaborative procurement strategies in construction your company will certainly move towards more knowledge and skill enhancement. Collaborative procurement in the field of construction is an opportunity for a small company to accept the concept of positive forward change. Small construction contractors could acquire many benefits by working with other construction companies especially when it comes to gaining construction procurement opportunities such as the following:
1. Restoration or rehabilitation
A government structure would have to be restored in this project. When it comes to restoration, you should consider the structure’s original design.
2. Designing and Building
Here, the construction company provides a design for a structure. When your design is approved, your company will be in charge of building the structure itself.
3. Management
Your firm may be assigned to manage the workers that the government would like you to screen or hire for them.
4. Repair
The government may ask your company to make repairs on a public structure. This may be a per project style of work that could be a semi-permanent or permanent one.
5. Purchasing Supplies and Materials
Collaborative procurement in construction allows the acquisition of supplies and materials. The government could purchase these from your company or the government could ask you to make the purchases they need in their place.
Collaborative procurement yields a lot of benefits for your small company. Also consider collaborative procurement in the public sector so that you may have complete exposure to every type of project out there.
