The impact of technology on your procurement strategy development

Developing a procurement strategy for major projects is a complex exercise. It needs to be, given the sums of taxpayer money that are typically at stake. Today, the budget for a significant infrastructure initiative may run as high as 10 figures.

The best procurement strategies are those which set out simply and clearly how materials and services will be sourced, and who’ll be involved in the process. They must also cover how project risks are distributed, managed and mitigated. Procurement strategies should draw on the input of multiple stakeholders and are informed and supported by documents and data from a wide variety of sources.

But, for project teams that are operating in manual mode, collating, tracking, sharing and storing this information can be challenging.

Dealing with a deluge of data

That’s hardly surprising, given the sheer volume of what’s involved. By the time projects reach the procurement strategy stage, major projects have invariably gone through an exhaustive planning process.

During this time, project teams will have commissioned and created a vast array of documents. Typically, they’ll include internal briefings, business cases, cost benefit analyses, community consultation reports, risk management strategies and matrixes, project frameworks, supplier and market condition research and stakeholder engagement plans.

All of these documents are sensitive and confidential. All of them will need to be version controlled, in accordance with the relevant government regulations, put in place to ensure accuracy, consistency and accountability around the expenditure of public funds. 

Document dissemination dangers

Developing a procurement strategy requires many of these documents to be shared, amongst members of the project team and with the broader stakeholder group.

The procurement strategy development stage involves selecting the optimal procurement method and developing the procurement strategy document, RFT/RFP templates and evaluation criteria. This requires ongoing collaboration among stakeholders to develop and finalise these documents.

That can pose significant risks, for project teams that are using legacy communication and collaboration platforms and processes. Printing documents out or disseminating them to stakeholders via email and intranets, for example, can be both inefficient and unsecure.

There’s constant potential for sensitive or confidential information to go astray or to be accessed by unauthorized parties. 

That can happen accidentally: a paper report is lost or misplaced, for example, or an email is inadvertently copied or forwarded to someone outside the stakeholder group.

Today, data compromise can also be the result of industrial espionage or malicious action by hackers and cyber-criminals.

Irrespective of how a leak occurs, the repercussions, both organisational and political, are likely to be negative and, in a worst case scenario, may even compromise the future of the project.

Tools to make the task easy

That’s where digital technology has a vital role to play. Bringing project documents together in a single, secure online repository makes them easier for project teams to use – and harder for unauthorised parties to access.

It also makes maintaining clear audit trails a straightforward matter. Having a comprehensive record of who created, updated and uploaded each and every document in the repository means greater transparency and a higher level of trust in the procurement strategy and process. 

Using digital technology to centralize documentation has the added benefit of ensuring project and procurement teams are utilizing a ‘single source of truth’ to develop their procurement strategy. That can reduce the incidence of undetected errors and the risk of procurement decisions being made on the basis of incomplete or outdated information.

Drawing on the power of virtual data rooms

It’s a compelling list of benefits and the reason why a growing number of public sector entities are turning to virtual data rooms to help them organise and oversee major infrastructure projects.

The term is used to refer to a secure online space where confidential documents are stored and shared with authorized parties.

It’s enabling technology that’s allowing entities to maintain efficient, secure, auditable procurement processes, from project conception to conclusion around the world.

It eliminates the risk and complexity that used to be part and parcel of managing documentation for major projects and makes it easier for project leaders to create procurement strategies that are fit for purpose.

Smarter procurement from start to finish

Developing a procurement strategy for a major project is easier with the right tools. Utilizing a virtual data room solution that allows you to collate, track and store documents safely, conduct sophisticated data analysis and produce comprehensive audit trails will simplify and de-risk every aspect of the process. It’s a smart way to ensure data is secure and everyone in your stakeholder group is on the same page.

Deploy a solution that’s been developed by professionals with firsthand experience planning, procuring and overseeing major infrastructure initiatives and you’ll stand the best chance of capitalising on the benefits this transformative technology can deliver.

If you’d like to learn more about how virtual data rooms are helping public sector entities run efficient, accountable procurement processes, we’d love to hear from you.