When it comes to the tender process for B2B companies, a common misconception is that the only thing that matters before signing on the dotted line is price – but, increasingly, on the back of a turbulent few years for supply chains around the world, several other key elements have risen to prominence.
Raymond Failla, Bunzl’s Business Development Manager – Processor & Industry, highlights how he’s seen the tender process being used to identify new ways to consolidate vendors. “When stock issues were at their peak, vendor lists began to get a lot longer. Now, customers want businesses that can streamline their ordering, while still servicing them in the way they require.”
Kristy Jones, Bunzl ANZ’s General Manager of Sales, has seen a similar trend when it comes to her customers. “Selecting suppliers capable of providing solutions that assist in streamlining your product portfolio can enhance efficiency and prioritise optimal cost-effective options. This approach reduces complexity, ultimately providing a better customer experience by allowing customers to concentrate on their core business activities.”
Another crucial element is the assurance of reliable services – such as having distribution centres in the right locations to support your business. “Customers are looking for suppliers that have size and scale and can service them whenever needed,” says Failla. “This allows an organisation to be mindful of turnaround times, have warehouse stock on-hand, and also the ability to quickly move stock as required.”
In the arena of digital development, researchers predict that 80% of B2B sales interactions between buyers and suppliers will occur in digital channels by 2025; and that 60% of sales organisations will transition from experience and intuition-based selling to data driven selling. That means working with a supplier that understands the value of data can help a business improve its own performance.
“suppliers that assist in streamlining your product portfolio can reduce complexity and providing a better customer experience – allowing YOU to concentrate on core business.”
Kristy Jones, Bunzl ANZ’s General Manager of Sales
“In today’s data-driven business environment, customers may want to consider suppliers who can provide insights and analytics related to their products or services, which can help optimise operations and decision-making,” explains Failla. “Making sure suppliers are on top of the opportunities data insights can offer is essential.”
As businesses increasingly harness data to drive informed decision-making within their supply chains, it is evident that a company’s Corporate Social Responsibility (CSR) initiatives can also have a huge impact on customers. Just as data insights inform strategic choices, understanding a supplier’s sustainability practices can be vital for mitigating risks and ensuring ethical and environmentally responsible operations.
“Making sure suppliers are on top of the opportunities data insights can offer is essential.”
Raymond Failla, Bunzl ANZ’s Business Development Manager – Processor & Industry
Additionally, it fosters transparency and accountability within the supply chain, contributing to long-term partnerships built on shared values and mutual trust. “Through the tender process, customers can prioritise suppliers with a transparent CSR approach. For example, do they have robust sustainability initiatives and goals, such as responsible sourcing, an ethical supply chain, and commitment to eliminating modern slavery practices and respecting human rights?” says Jones. “Choosing a supplier who understands the value of this approach and strategy is becoming increasingly important as businesses are held accountable, not only for their own actions but also for those of their partners and suppliers,” she adds.
The tender process holds immense potential beyond cost considerations. By focusing on factors such as reliability, innovation, and alignment with company values and goals, businesses can elevate their supplier relationships to strategic partnerships.
