Industry: Public

Public procurement is shedding the reputation of ‘paper-pushers’ and gaining recognition as a vital contributor to the organization’s strategic goals. Procurement professionals are instrumental in delivering the crucial goods and services to their organization in a timely and transparent manner.

However, many procurement teams struggle when it comes to advocating for tools and resources to improve their own process — whether training resources, technology, or other key investments.

In this webinar, we equip procurement professionals with a toolkit to articulate their value to upper management and make a successful case for the investment in procurement technology and training.

Utilities procurement teams play a crucial role in delivering essential services to customers, on time and on budget. The contracting decisions you make through bids and RFPs have a significant impact, not only on your procurement function but the entire organization—and the more complex the project, the higher the stakes.

Despite this, many teams have gaps in their technology which leave the evaluation of bids and RFPs to be completed through spreadsheets and manual steps. This is not only an administrative burden; managing evaluations through spreadsheets introduces a risk of errors and delays that put project outcomes on the line.Sound familiar?

In this webinar, hear from Robert Ferro, Senior Buyer at Alameda County Water District, about his experience using Bonfire eSourcing to address this gap.We discuss how public utilities organizations like yours are leveraging purpose-built software for bid and RFP evaluations, making it easier to engage stakeholders, efficiently evaluate vendor data, and ensure high-quality, cost effective service delivery to the organization.

Top takeaways

• Understand the risks and limitations of using spreadsheets and Enterprise Resource Planning (ERP) systems for bid and RFP evaluation
• Hear from a fellow utilities organization about their experience and results after implementing sourcing software
• Develop an action plan for selecting and implementing sourcing software at your organization

The Software-as-a-Service (SaaS) market is growing rapidly, with more organizations choosing to use these solutions than ever before. In fact, Gartner estimates that “the global Software as a Service Market will reach a valuation of 117 Billion USD by the end of 2022.”

In this webinar, we demystify the SaaS industry and everything you, as a procurement professional, need to know about it.

We also unveil some key statistics that highlight how your peers are making SaaS purchasing decisions, including average open to close duration, the typical number of evaluators, and common criteria weighting.

After viewing this webinar, you’ll learn:

• How SaaS solutions follow different business models that mean new contract types and procurement requirements;
• The difference between on-premise software versus cloud computing and what it means for your teams;
• The top security questions to ask before deciding on any type of SaaS solution;
• Why you should pay extra attention to the service component offered by SaaS providers; and
• The “hidden” benefits of these types of solutions.

As more and more work goes remote, public sector organizations are adopting software-as-a-service (SaaS) solutions more readily than ever before. From collaboration tools, to online learning platforms, to eProcurement, public agencies are investing in software that will help them run business-as-usual, even as they work from home. But the data shows that some procurement teams may still be struggling to make efficient yet informed SaaS RFP decisions.

Back in January, we produced a webinar in partnership with NIGP all about buying SaaS. We took a look at some SaaS metrics compiled from 60 SaaS procurement projects, involving 400 evaluators and 260 proposals. We found that the average evaluation time on these projects was 252 days. In contrast, the average public sector RFP takes 57 days.

These longer evaluation times for SaaS point to the fact that procurement teams may be struggling to strike the balance of making quick yet informed SaaS RFP decisions. It’s understandable that this balance is hard to hit, considering the SaaS business model has really only been popularly adopted in the last 5-10 years. But in this cultural climate where SaaS is no longer a nice-to-have, public agencies can no longer afford 252-day-long project cycle times.

We get it, with its unique business model, cloud-based data storage, and security considerations, purchasing SaaS for your agency may feel like a daunting task—but it doesn’t have to be. On today’s blog, we’re outlining 3 procurement foundations that will demystify SaaS and help you make efficient and well-informed SaaS procurement decisions that will serve your constituents even in uncertain times such as these.

Get to know the SaaS business model

Whereas your agency may have previously gained access to software after multi-year binding contracts and arduous installation processes, the SaaS business model is different. SaaS employs a software licensing and delivery model in which software is licensed on a subscription basis and is centrally hosted. That’s why SaaS is sometimes referred to as “on-demand software.”

For procurement teams, this shift should be a cause for celebration! When a software product is purchased and ends up not being the right fit for your agency (it happens), you’re no longer roped into multi-year—even decade-long—binding contracts that leave you helpless to change. Instead, by paying a monthly or annual subscription price, you have a lot more power to switch SaaS vendors or negotiate changes that meet your needs.

Understand SaaS vs on-premise software

SaaS is synonymous with cloud-based software. Cloud infrastructure refers to the hardware and software components—such as servers, storage, a network, and virtualization software—that are needed to support the computing requirements of a cloud computing model. The opposite of cloud-based software is on-premise software, which requires a lot of IT involvement, manual updates, and significant costs for software updates and maintenance.

To get a better understanding of the benefits of SaaS vs on-premise software, think about the Microsoft Office suite. When Microsoft Office was on-premise, you had to use a compact disc to install the software, and all your saved data from Word or Excel was stored on your computer’s hard drive. Now, Microsoft Office has migrated to a SaaS model, where no installation ins required—instead, you log in to your Microsoft account on your web browser, and your data is stored in the cloud.

Don’t forget the second “S”

We’ve covered much of the “software” part of “software-as-a-service,” and when a lot of procurement teams make SaaS purchases, they stop there. But, as a procurement professional, you can’t forget the second “S”—service.

When bringing on a SaaS vendor, you want to know that you’ll be supported through prompt and high-quality service to ensure that you get a return on your investment. Vendors are also motivated to provide the service that will make you successful so that you will continue to renew your subscription.

When looking for a vendor that will provide quality SaaS customer service, consider:

• If you’ll be assigned an Account Manager or Client Success Manager who will get to know your unique needs and challenges.
• If there will be on-going training so that users can become experts in the product.
• If there will be support and training when new products or updates are released.
• If there will be in-app product walkthroughs to enable user self-teaching.
• If there will be user conferences and meetups (once we’re done social distancing, of course!).

There are a lot of considerations to make when selecting a SaaS vendor for your public sector agency, especially when collaborating in an online environment is more critical than ever before. We hope that some of the basics we covered in this blog post enable you to make more informed and more efficient SaaS RFP decisions. If you’re searching for a SaaS solution to bring your procurement processes online during COVID-19, Bonfire is giving public agencies free access to the Bonfire Sourcing platform until July 31, 2020. Learn more here.

It’s no secret that procurement teams are facing unprecedented challenges right now. As provincial/state and local governments, schools, and public healthcare respond to COVID-19, procurement teams are working around-the-clock to ensure emergency procurements continue to happen quickly and compliantly. On top of that, you may even be navigating a new and unfamiliar reality of working from home. 

I say it in the video below—procurement plays a vital role in any crisis. Now, more than ever, it’s critical that you meet project deadlines to serve the constituents who are looking to your public agency for help in times like these. As a leader in North American procurement technology, we want to help. 

Over the past few weeks, Bonfire has heard so much client feedback that our strategic sourcing platform is playing a critical role in ensuring their procurements rise to the challenge in these uncertain times. Now, we want to help more public agencies meet their business continuity plans—which is why we have developed our Bonfire COVID-19 Emergency Response Program to offer our platform for free to public sector organizations in North America. I go into some more detail in my rather low-budget video below (when you’re practicing social distancing and don’t have any fancy equipment around your house, you do what you need to do!). 

If you’re unfamiliar with Bonfire, our software brings the historically paper-and-Excel procurement process online, from bid and RFP listing, to vendor submission, to bid/proposal evaluation, to awarding a contract quickly and compliantly. 

Our Emergency Response Program is completely free-of-charge and there is no obligation to continue with Bonfire once the Program is complete. The Program for new users includes:

• Free access until July 31, 2020 for users, evaluators, vendors, and unlimited bid and RFx projects
• Ability to create, solicit, evaluate, and award bids remotely with simple online tools
• Access to Bonfire’s large vendor network. Additionally, there are no fees for vendors to view bid documents or submit responses
• Group implementation and training to get you up-and-running quickly
• In-app collaboration tools and data visualizations to bring evaluation meetings online and facilitate decision-making

At Bonfire, we currently help more than 350 public sector organizations action the mission-critical procurements that meet their constituents’ needs—even when working remotely. 

We know that in times like these, there is so much uncertainty, and the demands on procurement are greater than ever. We want to assure you that we at Bonfire are here for you, and we’ll get through this together. 

All the best,

Corry 

We won’t beat around the bush—it’s no secret that public procurement teams are under more pressure than ever before. With more and more organizations mandating remote work as the COVID-19 situation continues to evolve in North America and around the world, procurement teams are facing new and uncertain challenges.

This unforeseen and ever-evolving climate we find ourselves in requires urgent procurements that address public health and safety. Not only are you faced with these urgent and unexpected procurement needs, but maybe some of your critical evaluators aren’t even in the office. When getting vendor documents and evaluation scorecards in the hands of stakeholders is next to impossible, the risks of project delays or poor procurement compliance only increase.

And it’s more critical than ever that your procurement team meets project deadlines. The citizens that you’re serving, whether you work for a city, a school, or a hospital, are directly impacted by how fast-acting your procurement process is. Our society relies on the support of the public sector, especially in trying times like these. 

As more and more teams transition to remote procurement, we are committed to ensuring that the citizens you serve get access to the goods and services they need because of on-track and fast-acting procurement timelines. That’s why Bonfire has launched an Emergency Response Program, offering free access to the Bonfire Strategic Sourcing software for new users.

With that in mind, we hope that this blog post can provide you with the toolkit you need to minimize disruptions as you prepare to transition to remote procurement.

Collaborate remotely by bringing sourcing online

If there’s one department that can’t afford to slow down in times like these, it’s procurement. Not only are you procuring critical supplies and services—such as hand sanitizer dispensers, or contracted professional services to take on the work of out-of-office staff—but so much of our already fragile economy depends on procurement running business-as-usual. When public procurement slows down, contracts don’t get signed, and vendors dependent on those contracts struggle to remain in business—possibly resulting in job losses or closing shop. In times like these, there is a lot riding on the shoulders of public procurement teams to keep your local and national economies from reaching a stand-still. 

That’s a lot of pressure—and it’s only amplified when critical buyers and evaluators aren’t in the office, or your organization mandates a work-from-home policy. 

Manual, paper-based processes will likely cause major delays in your procurement processes. Disseminating documents to out-of-office staff is a logistical challenge, and receiving shipments of vendor proposals is out of the question when your office is shut-down. 

To prepare your sourcing strategy for the potential reality of remote work, it may be time to bring all your procurement activities online. And we don’t mean an online spreadsheet, where different iterations and revisions are hard to track and conversations still have to happen over back-and-forth emails.

Investing in online sourcing software (or accessing Bonfire for free at this time) brings all of your sourcing activities online, centralizing all necessary documents and evaluation processes and making them accessible from anywhere. Tools designed for collaboration and communication can reduce your bid and RFP evaluation times significantly by minimizing the number of evaluation meetings you need to get procurement and stakeholders on the same page. In times like these, a fast-acting procurement process is mission-critical to meeting your agency’s needs.

Ease vendor stress with online submission

With everything going on at your agency, it’s easy to allow a focus on vendor relationships to fall through the cracks. But vendors are experiencing a lot of anxiety right now, too. Vendors are thinking, will my contracts be signed? Will there be someone at the procurement office to receive my paper submissions? Is it worth it to put so much time, effort, and resources into an intensive RFP when I’m already short-staffed?

The climate of uncertainty that we’re in presents a unique opportunity to strengthen your vendor relationships like never before. 

Travel and delivery services are so uncertain right now, causing a lot of stress for vendors who depend on these services to meet bid and RFP solicitation deadlines. By bringing your bid and RFP submission online, vendors no longer have to factor in shipping times as they respond to already urgent solicitations. With many vendors already short-staffed, the extra submission time could be game-changing in ensuring more vendors bid, increasing your vendor competition and securing better value for the goods or services you’re acquiring. 

Leverage other remote work software 

At Bonfire, we’ve heard a lot of stories from our public procurement clients on how they’ve leveraged other remote work software to augment their remote procurement capabilities. 

If you have previously opened vendor bids in a physical meeting place, there are online meeting and webinar software—like Zoom or GoToWebinar—that can enable you to continue bid openings as per usual, regardless of attendees’ physical locations. 

Although collaboration tools within eSourcing platforms help limit meetings, when those consensus meetings do need to take place in-person, you can leverage those same online meeting tools to keep everyone aligned and keep projects on track.

These are undoubtedly uncertain times that we’re in, and the pressure on procurement to be fast-acting and aligned with stakeholders to serve the urgent needs of your agency is greater than ever. Perhaps on the positive side of all this, as organizations urgently switch to remote procurement as health officials promote social distancing to “flatten the curve” of the COVID-19 outbreak, is that we will have a lot of lessons learned as we enter a future where remote work progressively becomes the norm, even in the public sector. 

We understand that moving your strategic sourcing processes online is no small task, especially in the midst of a global health crisis that is directly impacting your agency and the citizens you serve. We’re here to help. Bonfire brings procurement online to keep critical projects on track. Find out more about our program to enable access to the Bonfire Strategic Sourcing platform for free.

Do your eProcurement and contract management operate separately? It may be time to consider housing them in one software. 

At Bonfire, we’ve had the opportunity to work with a lot of organizations that are passionate about finding the perfect eProcurement software that will bring their processes online, reduce their environmental impact, align stakeholders, and improve consistency. But why not bring those benefits to your contract management, too? 

After all, sourcing and contract management are intrinsically connected; in one stage, you’re evaluating the best vendor. In the other, you’re tracking their performance and deciding whether it’s a relationship worth renewing.

At the end of the day, both have the same goal—to drive the most value for the goods or services you need. So why are you treating them as separate? 

On today’s blog, we’re exploring 5 reasons why managing your contracts in your eProcurement software is a good idea. 

1. Automatically generate contracts from awarded proposals

You’ve spent a lot of time, energy, and resources to find the perfect candidate for your bid or RFP—now it’s time to create the contract. When your procurement and contract management are hosted together, all the data you need to generate a new contract is already there for you to pull from.

For example, in Bonfire, you can save time and ensure consistency by creating templates that are pre-configured to include the default details, documents, and people for a given contract type. Since vendor information is already stored in Bonfire, you can create a contract record that automatically carries over relevant information (such as public files from the original project and the awarded vendor’s submission documents) from the procurement project into the contract record. 

2. Evaluate vendor performance

Sourcing and contract management operate in a cycle; first, you have to evaluate bids or RFPs to find the best vendor, then you work with that vendor, then you evaluate their performance, then you have to decide whether you continue that relationship or go back out to the market for that contract when it’s up for renewal—and the cycle starts again. So it makes sense that you would want to manage vendor performance in the same place where you host your strategic sourcing activities. 

In Bonfire’s Contract and Performance Module, for instance, users can create surveys to measure vendor performance, add respondents that will receive the survey, view survey results and frequency, export survey results, and view trends from past surveys to track improvement. 

3. Track important milestones in your contract lifecycle management

Once you’ve evaluated the performance of your vendors, you’ll want to track important contract dates like lead time and end date so that you can prepare to renew contracts or go back to the market. 

In Bonfire, a calendar heatmap provides you with a high-level view of important upcoming dates. Dark-color days signify more contracts expiring for greater values, allowing you to prioritize your time accordingly. You can set reminders on the lead times of relevant contracts to you.

Additionally, by selecting an individual contract you get a visual timeline of various terms of the individual contract, important dates, and custom reminders that you set for yourself. 

4. Go green

Does your organization have a “digital transformation” or “go green” mandate that led you to invest in an eProcurement solution? You wouldn’t be alone; our friends at Ventura County transitioned from a paper-based procurement process to an eProcurement solution and saved 170,000 pages of paper in one year, reducing their environmental footprint (not to mention shredding costs!). 

Why stop at procurement? With your contract management activities integrated into your eProcurement software, you can view contract information on a central dashboard, filter contracts to locate the information you need, and export custom reports to Excel—no physical paper required. 

5. Share insights seamlessly

Many of us have invested in eProcurement solutions because we know the power that data and insights can have in making more proactive and strategic decisions. And the same goes for contract management!

In Bonfire’s Contract and Performance Module, all the information you need is in one place and easily exportable. You can also give other users in your organization access to contract details (to view or edit), so all contract stakeholders are on the same page. 

Learn more about how Bonfire’s eProcurement and contract management work together on our Bonfire Contract and Performance Management page. Or, if you’re already a Bonfire client, contact your Client Experience Manager today. 

Procurement professionals know the power of relationships in strategic sourcing. 

Better vendor relationships mean greater vendor competition. Engaged and aligned stakeholders conduct evaluations smoother and faster, making the procurement process more beneficial and less burdensome for those involved. 

Unfortunately, outdated and administratively-demanding processes can put undue stress on internal stakeholders and vendors, straining those critical relationships—and ultimately, jeopardizing effective procurement outcomes.

The Great Lakes Water Authority (GLWA)’s utilities procurement team was experiencing these challenges first-hand. With such a large scope—GLWA supplies water to 40 percent of the state of Michigan’s population, as well as wastewater services to nearly 30 percent of Michigan’s population—it was becoming increasingly difficult to manage paper-based workflows. The time-consuming and error-prone nature of these workflows caused a lot of frustration for both internal stakeholders and vendors—a recipe for strained relationships. 

On today’s blog, we’ll dig into some insights from GLWA’s experience moving from administratively-burdensome processes to an eSourcing solution that prioritizes stakeholder relationships and vendor engagement—and how that transformed those relationships (and ultimately, the utilities procurement outcomes) for the better.

Paper-based workflows are a recipe for severed relationships

When procurement teams rely on pen-and-paper evaluation processes, no one wins. Vendors are tasked with printing binders of material, factoring in time for shipping, and worrying in the back of their minds that their bid could be disqualified because documents go missing or they miss an addendum or clarification. Evaluators, who may already be overstretched from the demands of their primary job, become overwhelmed with the administrative burden of flipping through pages and pages of information—which might not all be relevant to that particular evaluator. And procurement teams may feel more like nagging overseers than relationship-builders as they continually check-in with delayed evaluators to keep projects on track.

GLWA was in the same boat. With 21 buyers who oversee purchases that include numerous stakeholders and evaluators per project, and a vendor pool of more than 2,400 vendors, complex paper-based practices were no longer sustainable. Internal stakeholders were frustrated because evaluation times were long and contract statuses felt like a black box. GLWA was understandably concerned that these project delays and lack of visibility would put vendor relationships at risk.

Strategic sourcing software doesn’t have to turn processes upside-down

Strategic sourcing software has the potential to increase stakeholder engagement and improve vendor relationships by making the procurement process more transparent and straightforward. With so many projects on the go, however, many procurement professionals don’t have the time or the resources to dedicate to strenuous change management. 

GLWA was no different; they already had strong foundational processes in place but needed a way to execute their processes efficiently. After all, a more efficient and stakeholder-friendly process leads to more satisfied customers and partners. GLWA turned to Bonfire to digitize their existing workflow, from solicitation to award, and then through contract management and vendor relationship management. 

eSourcing empowers procurement teams to improve results

GLWA’s stakeholders and vendors were able to begin using Bonfire immediately without formal training. Vendors could submit proposals and keep related materials updated in a more efficient and cost-effective manner, and internal stakeholders saw evaluation times get cut by five to seven days. These efficiency gains alone left stakeholders and vendors more satisfied with the strategic sourcing process, but the benefits went beyond efficiency for efficiency’s sake.

With less time devoted to administrative tasks, GLWA’s utilities procurement leaders were then able to structure their buyers in more strategic positions so that they could be more effective in their jobs. Additionally, GLWA launched a small business vendor initiative, with the goal of reaching out to small vendors and bringing them into the bid process. Bonfire made it easier for GLWA to engage more vendors, increase their vendor pool, and manage relationships with those vendors. 

To learn more about how improved evaluation timelines and transparency with Bonfire’s eSourcing solution led to better vendor relations and buyer satisfaction at GLWA, read the full customer success story.