3. Consider engaging the market
Before awarding a contract, conduct your own analysis of the market, of the players involved, and of the sustainable products or services available. You should also determine the position of your procurement organisation in relation to the major market actors. Once your analysis is completed, you can involve the market in an appropriate manner.
It is important to understand position of your procurement organisation in relation to your suppliers. You can use Kraljic's Purchasing Portfolio Analysis for this purpose. The position of the potential suppliers in the matrix influences your scope for making demands about sustainability. In "partnership" approaches to strategic products, SPP can form an integral part of the agenda and can be included in audits. Where routine products are concerned, there can be a greater focus on ecolabels or other demonstrable guidelines. Sustainability requirements and wishes, in turn, influence the position in the matrix. Setting highly specific requirements may cause the supplier base to shrink, while exacerbating supply risk. On the other hand, at a higher level of abstraction, specification can actually boost the number of potential suppliers and generate new opportunities.
Given your own knowledge of the market and based on the analysis you have already conducted, you may feel the need to involve the market more actively through a market survey or market consultation.
Your objectives in this regard could include:
- Checking that your invitation to tender is proportionate.
- Obtaining a better understanding of sustainability developments in the sector.
- Finding out whether a 5% social return requirement in a specific sector is feasible, without supplanting existing jobs.
- Determining whether the minimum requirement you are imposing on the market is sufficiently ambitious yet, at the same time, feasible. This could, for example, involve the requirement that towels are made of at least 80% recycled fibres.
- Checking whether any market players can offer an innovative solution to your mobility problem.
- Finding out whether there are any biobased or circular solutions for the public procurement that you want to put out to tender in the market.