What conditions require the use of a DPS? There's help available... | adam HTT
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15.01.2019

DPS Bingo? A guide to dynamic purchasing systems

We've unashamedly been referencing the excellent Local Government Associaton's  "Guide to Dynamic Purchasing Systems" in many conversations with clients and prospective clients.

 

The guide offers practical advice on what to consider when deciding on a Dynamic Purchasing System (DPS), and asks the reviewer to consider the conditions within which a DPS is better used.

 

The concept and use of DPSs is not a new one and, the LGA states, following the PECR 2015 Public Contract Regulations (2015) became a more considered and more used procurement option in public sector commissioning.

 

The report also explores the upside, or key benefits, of using a DPS arrangement, namely:

  1. Flexibility to add suppliers to the arrangement at any point
  2. The option to drive cost savings because of increased competition (adam would go further by stating that this also opens discussion around sustainability AND quality, as discussed in our brand new white paper here)
  3. The opportunity to stimulate markets
  4. The opportunity to open up supply in harder to reach markets serviced by local or regional SMEs

 

OK, so it's not a game of bingo. 

 

However - there are definitely some key considerations to take when determining if the conditions within which you currently operate might require a Dynamic Purchasing System.

The more of these questions you can answer "Yes!" to, the more you are going to need to consider using a DPS:

  1. Do you have a large potential volume of suppliers?
  2. Do you have capacity issues in your existing arrangement?
  3. Do you have a large potential volume of transactions?
  4. Are there low potential barriers to entry for suppliers in this chosen space?
  5. Do you have difficulties achieving economies of scale or bulk buying?
  6. Is your chosen market particularly price sensitive? (ie. fuel costs or location staff costs cause price fluctuations)
  7. Are there many potential buyers working within your organisation?
  8. Do you require the option to automate elements of the existing process? (ie. consolidated invoicing or contract management)
  9. Do you want the opportunity to actually SHAPE your market?
  10. Do you want - or do you need - to work more frequently with local SMEs and those whom can provide a more custom solution?

 

And as we have stated in our white paper

  • Do you want the opportunity to drive a sustainable quality of service?
  • Do you need control over supplier performance?
  • Do you need suppliers to provide more relevant solutions to your specific needs?

 

When you have access to a dynamic supplier network which enables you to configure across more axes than cost (additionally: quality; sustainability; performance; relevance) you can help enable improved individual wellbeing.

 

The LGA offers tips to aid decision making for those reviewing their options: speak to others who have set up a DPS; engage with key stakeholders; don't underestimate challenges around cultural change; build a robust business case....

 

....and we would add one: work with a professional organisation like adam, who have a proven DPS technology platform, successfully used in public sector by clients up and down the country.

 

Here's the link to the report for you

 

 

 

 


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