The Benefits of Strategic Procurement
Strategic Procurement from a sector wide standpoint has many benefits for CAUDIT members. These benefits include:
- Cost Reduction – a reduction in the cost to do business; these cost savings should be evident for both the vendor and the CAUDIT Member.
- Demand Aggregation – an improved ability for CAUDIT to aggregate demand for product and services via term, group or volume purchasing commitments.
- Standardisation – Improved coordination between the CAUDIT membership with respect to the product and services being used in order to simplify the technology mix in use within CAUDIT Members and support processes within and between CAUDIT Members.
- Simplified Processes – A reduction in the bureaucracy required to engage with vendors, including (but not limited to) common terms and conditions, a single price list and improved handling of procurement processes.
- Information Sharing – Improved communication between vendors and the CAUDIT Membership including technology roadmaps, support and process information and general communications.
Strategic Collaborative Procurement may also be used to establish a group of vendors providing hardware, software and services in a particular area, referred to as a panel agreement. Members may make use of panel agreements to select vendors and/or assist negotiation.