Share these talks and lectures with your colleagues
Invite colleaguesPractice paper
The best bidding method for your CRE sourcing initiative : A comparative analysis of popular competitive methods
Corporate Real Estate Journal,
9
(3),
256-267
(2020)
Abstract
Every day hundreds of organisations conduct competitive bids to pick the best suppliers to meet their needs. Unfortunately, too many organisations are using the wrong competitive bidding tools for the wrong job. This often results in the selection of the wrong supplier or development of a contract that is not aligned with the organisation’s objectives. Using the wrong competitive bidding method is like putting a square peg in a round hole; forcing a fit is myopic and inefficient. To further complicate things, newer, more collaborative approaches have emerged that tout the benefit of allowing buyers to gain insight and improved supplier innovation through more collaboration with suppliers during the bidding process. Today’s corporate real estate (CRE) professionals should understand — and enthusiastically embrace — the entire suite of tools in the sourcing toolkit and carefully select the most appropriate competitive bidding method for their situation. This three-part paper provides a deep dive into competitive bidding practices and challenges CRE organisations and their sourcing counterparts face in their quest to ensure they are deploying sourcing best practices. Part 1 (this paper) provides an overview of each of the competitive bidding methods and outlines what each is and when it should be used. The paper answers the question, what is the right tool for your situation? Part 2 delves into research by the University of Tennessee on the use of collaborative bidding practices — especially the request for partner method. Finally, Part 3 provides a case study of how one CRE organisation successfully deployed a request for partner to shift from working with 20 suppliers to one strategic partner.
Keywords: facilities management; corporate real estate; competitive bidding methods; sourcing business models; procurement; outsourcing; bid process
The full article is available to subscribers to the journal.
Author's Biography
Kate Vitasek is a faculty member for Graduate and Executive Education at the University of Tennessee’s Haslam College of Business Administration. Her award-winning research has been featured in six books including: ‘Vested Outsourcing: Five Rules That Will Transform Outsourcing’ and ‘Vested: How P&G, McDonald’s and Microsoft are Redefining Winning in Business Relationships’. Her most recent book, ‘Strategic Sourcing in the New Economy: Harnessing the Potential of Sourcing Business Models for Modern Procurement’, has been widely endorsed by some of the most progressive procurement leaders across the world.
Magnus Kuchler is a partner at EY Advisory Services based in Stockholm, Sweden, where he leads EY’s outsourcing advisory practice and EY’s global work as a University of Tennessee Vested Center of Excellence. Magnus has led 125 facilities outsourcing projects in over 60 countries. He is known for being a thought leader and pioneer for CRE outsourcing and was the first in Europe to pilot a request for partner process.
