Run an industry engagement

Familiarise yourself with the group or subgroup of goods or services you’re targeting. Understand what sets it apart from similar groups or subgroups, and why you need to run an industry engagement to learn more about it.

Consider which agencies and functions within agencies will be the end-users of the products or services you’re interesting in procuring. The more you understand the users, the clearer and more specific your requirements will be before you approach the industry.

Take a deep-dive into the need that's driving your potential procurement. Analyse the histories, characteristics and features of the end users and their needs

Ask questions, like:

• How do users currently approach procurement?
• How do they specify and track procurement outcomes?
• Which suppliers do they already use?
• What opportunities and important features do the end-users identify in the industry?
• What strengths and weaknesses do they see in their current procurement approaches?

A thorough understanding of your end users will help you define and justify why you need an industry engagement at this time.

Consider the industry’s structural, economic, financial and competitive characteristics.

Ask:

• Where and how does the industry add value?
• How do costs and prices behave across time?
• What are the profit sources?
• Where are assets committed?
• Who are the key competitors and what competitive forces are at work?
• Do small to medium enterprises have a competitive position? If so, how do they compete?
• Are Aboriginal businesses visible in the industry?
• What are the points of competitive leverage and vulnerability?
• What are the key risks and who carries them?

Identify the significant trends you've discovered in steps 3 and 4.

Ask:

• What are the implications for the industry and your agency?
• How innovative is the industry and what nature does that innovation take?
• Could there be unexplored opportunities for innovation?

Make sure you add your learnings to your agency’s procurement knowledge bank

Meet face-to-face with existing and potential suppliers to explore and confirm the understanding you've developed during steps 3-5.

Approach suppliers individually and ask them to share their knowledge with you.

Use simple questions. Make sure you listen rather than talk. You don't need to give away your existing knowledge, especially as you are still in the learning phase of an industry engagement.

Make sure you respect the suppliers’ confidential information and intellectual property and follow our probity and confidentiality protocols.

Based on what you've learned in step 6, re-assess the information you added to the procurement knowledge bank during step 5. Add any new learnings, and fill in any gaps where you can.

In light of what you've learned about the industry, consider whether you should change the agency’s needs.

If you do need to make changes, consider what would be involved in getting that change accepted and actioned.

Ask:

• Is there potential for innovation in the product or service structure, or in the scope of the outcome?
• How is the industry likely to respond to the innovation?
• What is the risk profile and how should risk be allocated?
• How will the parties involved react to the timeframe and uncertainty involved in exploring the potential innovation?

Your learnings should contribute to your choice of procurement strategy and market approach.

Consider whether you should you base the procurement strategy on a traditional tender that's specification-driven, or whether you're seeking a more non-traditional or complex approach.

Ask:

• What is the most appropriate structure for any tender (that is, the market approach)?
• Could you change any elements of the tendering invitation, request, conditions or documents to make the procurement more cost-effective?
• Could you use an outcomes-based procurement strategy?