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Dear Connectors,We are very happy to announce that you can now keep up with Mercell’s products and services through our brand new Status Page!This status page will live on the Mercell Community and can be access through the link above, or by clicking “Status page” in the banner at the top of the page. From here you can see the response time and current operational status of our Mercell products and services. We will also use the page to post manual updates in case anything happens. You can also go to status.mercell.com to head there directly.If you want to, you can subscribe to Status Page updates by clicking the “Subscribe” button. When subscribed you will be updated by email whenever there changes to the status page.Please let us know what you think and if you have any feedback!
Dear Connectors,We are incredibly excited to announce that the early testing stages of the Mercell Community have finished and its doors are open to all Mercell customers! The Mercell Community is an online space where you can connect with other Mercell users through creating and engaging in discussions related to all things procurement and tendering. Click here to register or login with your Tendering and Bidding account. Start your first topic on our discussion forums or introduce yourself to the community.The discussion forums are divided into categories based on countries and products. Feel free to use your native language in the appropriate categories. You can also connect with Mercell directly by sharing your feedback with us!In addition to the discussion forums, you can access our extensive Mercell Knowledge Base directly from the community. Use the search bar at the top of the page to get started! The search feature will look up articles from both the Knowledge Base and the Community, making it easier for you to find what you’re looking for.We can’t wait to see what sort of discussions you create, and we’re greatly looking forward to seeing the community grow in the coming weeks and months.
With these release notes, we share how to manage participants in follow-up rounds and more. In this release, we’re introducing the ability to manage participants in a multi-round tender. With this new feature, you can now add and remove suppliers in the current round.Curious about all the new features we have added to the system? Read on!Manage Round ParticipantsWhen you’ve set out a multi-round tender, you couldn't previously add suppliers from a previous round unless they were marked as awarded. Now, buyers can add and remove suppliers in the current round.💡Please ensure that the following setting is enabled in the Business Process Management: Features > Mini competitions: Enable Selection of Admitted suppliers > YesThis feature is useful when, for example, you have awarded the suppliers to participate in the next round of the tender, but you forgot to add the suppliers from the previous round. Now, it is possible to go to the Supplier tab in the next round and to click on “Add suppliers from previous round”. 👇Within this page, you can select the suppliers that were participating in the previous round and add them to the current round.In order to do so, you’ll need to describe a reason, which is only visible for you (and not the supplier). 💡 Both when adding and removing suppliers to the current round, you will see a pop-up. Here, you will need to describe why you added or removed the supplier.The notes can be found in the three-dot menu, next to every supplier in the Suppliers tab: These notes are part of the Tender ZIP export in the folder <Round name> 🡪 Supplier notes.Multiple offersWhen a supplier has submitted multiple offers, it is only possible to add one offer to the current round. Deleting suppliersYou can remove a supplier from the current round in the three-dot menu. The supplier will not be deleted from the tender. When deleting, you again need to provide a reason which is only visible to you. 💡Please note that this feature is not implemented for multi-lot tenders. Small changesReports: The parent tender field (Tender ID + Tender name of the parent fx DPS tender) has been added to the Offer Report and Award Report New Mercell logos: Our rebranded logos have been updated in Source-to-Contract and emails sent from the platform.Fixed bugsSupplier submitting question: Suppliers can now submit questions with angle brackets (<) followed by text. This issue has been resolved. Adding Questionnaires – When adding additional Questionnaires in a tender, the checkboxes are now properly aligned. eForms – After adding validation on the TenderNed number in the Form selector, you got stuck and couldn’t create a notice. With this release, we’ve fixed the issue.
Hello Connectors,We’re thrilled to announce that the Mercell Community has undergone an exciting transformation! Our newly restructured Community now features country and product-specific categories, making it easier than ever to connect, share, and discuss topics tailored to your unique needs and services. Whether you're navigating local regulations or diving into specific product discussions, there's now a dedicated space for you!While English remains the default language, you’re welcome to discuss in your native language within these new categories. We’ll continue to post articles, blogs, and updates in English, and we encourage English use in General Discussions and the Mercell Tendering and Bidding Groups.Dive in, explore the new structure, and let us know what you think in the comments! Your feedback is key to making the Mercell Community a central part of your procurement journey.Happy connecting
Hello Connectors,I come bearing good news for everyone! Starting today you can use your Mercell Bidding and Mercell Tendering credentials to easily log in to the Mercell Community!After you click the “Login” button in the top right of the Community page, you will now see a button that reads “Use Mercell Credentials” under “Login with SSO”. Clicking it will bring you to a new page where you can input your login. You’ll then be taken back to the Community page, fully logged in! If you haven’t created a Mercell Community account, this process will create one for you. If you already have an account then you can use your existing login credentials. Please be aware that this process only works for users of the Mercell Bidding/Tendering platforms. If you haven’t been upgraded to the new platforms you can’t use your credentials in this way.If you have any questions about logging in to the Mercell Community, don’t hesitate to reach out or leave a comment down below.
Discover how analytics empower new suppliers in public procurement for strategic success Currently navigating the public procurement landscape? You should know that data and analytics is your secret weapon. It's not just numbers - it's a powerful tool that can increase your competitive edge and drive your business strategies forward. And for new suppliers entering the world of procurement, fully understanding the data at your disposal can be transformative.Because by effectively using this data, you can make more data-driven, informed decisions. It also helps you tailor your strategies to today’s market conditions, plus identify emerging trends before they become evident. That way you’ll position yourself to compete much more effectively, and you’ll seize opportunities that others overlook. In this article, we’ll discuss how analytics from platforms like Mercell can redefine your approach to public procurement, helping you thrive in the landscape.In this article:Tackling the challenges of public procurement data 4 key analytics use cases for public procurement ConclusionTackling the challenges of complex public procurement dataFor new suppliers on the scene, the public procurement market can be overwhelming - largely due to the amount of complex data. It’s in many ways a whole different ballgame compared to the private sector, where huge volumes of data aren't always at your fingertips.The deal is: Public tender data is usually more transparent and accessible. Government bodies, from local municipalities to national agencies, must openly share tender notices, contract awards, and other relevant details. This all stems from a few key principles:There’s legal obligations: Public entities are bound by law to operate transparently and ensure all potential suppliers have a fair shot. Accountability and openness: With transparency as the foundation, this kind of open system promotes fairness, minimizes corruption, and lets citizens keep an eye on how public funds are actually being spent. Centralized platforms: To simplify access, a lot of countries have centralized all public tenders on special portals and websites. Great for visibility but automatically means there’s a lot (too much) to go through.Without a clear way of understanding and analyzing this data to use it efficiently, suppliers risk missing valuable opportunities. Not to mention misusing resources and creating strategies that don’t align with the realities of the market. The result?Poor performance compared to competitors that know how to use data effectively Inefficient bidding, where suppliers either underestimate or overestimate their bids based on f.ex misunderstood data Struggling to anticipate new regulatory changes and market trends. Reactive strategies: A lot of suppliers miss out on opportunities by reacting rather than planning their bids with clear timelines, like knowing when contracts end. This reactive approach reduces their chances of securing new opportunities and building strong customer relationships. That’s why succeeding in this market means suppliers should look for more efficient ways and tools to access the vast amounts of data available in the public market. Understanding how to interpret and strategically apply this data is crucial.4 key analytics use cases for public procurementUnderstanding and effectively using data is key when navigating the public procurement landscape, as it can streamline and improve your overall strategy. Let’s take a look at four data analytics use cases from Mercell, each showing how to effectively leverage data insights: 1. Market potential and procurement activityUsing platforms like Mercell with advanced analytics gives you comprehensive insights into the volume of procurement opportunities within your sector.What are the main benefits?Strategic growth: Access to detailed procurement data helps identify growth trends and seasonal changes, enabling quicker and more accurate strategic adjustments to align with market dynamics. Better resource management: Analyzing procurement peaks allows for optimal resource allocation during high-demand periods and improves internal operations during quieter times, enhancing cost efficiency and operational effectiveness. Finding hidden opportunities: Transparency in public sector procurement data uncovers overlooked business opportunities across various industries, helping suppliers extend their reach and impact.Say a supplier observes an annual increase in procurements towards the fiscal year-end, they can strategically increase inventory or allocate additional staff to meet the rising demand. Similarly, if service demands peak in the first quarter, adjusting budgets and employee allocation can accommodate the increased workload.(Prognosis of upcoming tenders in the construction sector)What’s the overall outcome? Precise market targeting and effective risk management. Alignment of operations with market dynamics.All in all, these insights provide a competitive edge that ensures suppliers are well-prepared to meet market demands efficiently, turning data into actionable strategies.2. Competitor insightsUnderstanding your competitors' position in the procurement market is beneficial. Especially because the biggest players in the private sector vary from those that are leading in public contracts.Data analytics from platforms like Mercell give you the tools you need to take a deeper dive into the activities of your competitors, giving you insights that could reshape your competitive strategies.What are the biggest advantages?In-depth competitive analysis: Platforms like Mercell provide insights into your competitors' activity, including the number of tenders they enter, their win rates, and the bids they've lost. This "bird's eye view" helps you quickly identify both longstanding and new competitors in your market. Strategic advantage: Understanding where competitors succeed and fail allows you to tailor your approach effectively. Pinpoint areas where you can offer unique value or improve on existing market offerings. Benefits for newcomers: These analytics simplify navigating the sector’s complexities, helping newcomers strategically position their businesses for increased success.3. Tender requirements and historical documentsMercell’s platform allows you to explore historical tender documents, revealing specific past requirements such as certifications, financial criteria, and environmental policies.That way you can identify recurring requirements in procurement documents, helping you prepare effectively for future bids. This is particularly beneficial because many buyers tend to request similar qualifications repeatedly.By reviewing past procurement documents, you can:Spot patterns: Recognize frequently requested credentials, such as environmental certifications or specific turnover levels. Prepare in advance: Obtain these credentials ahead of time to avoid last-minute scrambles. For instance, if high IT security is commonly required, you can enhance your tech infrastructure before bidding.This proactive approach ensures you're well-prepared and positions you as a reliable and forward-thinking supplier. Instead of reacting to requirements, you're anticipating and meeting them head-on.4. Contract timelines and future opportunitiesMercell's analytics let you track contract expiration dates, crucial for seizing new opportunities. Set alerts for contracts ending in the next 6 to 12 months, which helps position yourself for upcoming tenders swiftly. Here’s why this matters:Get the perfect timing: Know exactly when contracts expire to time your market entry with new tender releases, especially in industries with regularly renewed contracts. Engage in more proactive planning: Engage with procurement officers early by knowing contract end dates. Tailor your proposals to upcoming tender requirements before they're announced.(Contract timelines within the construction sector)And the overall impact?Make smarter decisions, align with real opportunities, and enhance client interactions. This proactive approach boosts your chances of winning contracts and marks you as a ready, forward-thinking market participant.ConclusionThrough analytics from platforms like Mercell, complex data is turned into understandable and actionable insights. These insights equip suppliers with the information they need for competitive and strategic planning.In other words: A transformative approach for new suppliers entering public procurementExplore how Mercell's platform can enhance your procurement strategy by signing up for a free trial, which lets you experience firsthand how effective analytics can help grow your business and support your business decisions.
Public procurement serves as a driving force in Norway’s public sector, involving an annual expenditure of approximately NOK 742 billion. To ensure that this significant spending is managed efficiently and sustainably, the Norwegian Agency for Public and Financial Management (DFØ) conducts a bi-yearly survey to assess the market’s current state and development initiatives. This year’s 2024 survey offers a well-rounded, behind-the-scenes perspective on the procurement landscape. With a growing interest in participating in the benchmark, over 600 central and municipal agencies, responsible for everything from office supplies to infrastructure projects, accepted DFØ’s invitation.The survey dives into a series of key procurement areas, shedding light on both progress and areas of improvement. From governance, collaboration, competence, digitization, to environmental practices and innovation, DFØ offers valuable insights into procurement strategies and practices. But DFØ isn’t merely observing these changes. By offering tailored management panels, DFØ helps organisations in identifying their strengths and areas needing improvement.What did this annual check-up reveal? The survey highlights: Streamlined Procurement Processes. A notable rise in strategic maturity, as more public agencies transform their routine operations into strategic powerhouses, with a focus on streamlining all procurement processes. Environmental Work and Innovation. A keen emphasis on climate, environment, and innovation, with more companies adopting low-emission solutions and circular economy measures, reflecting a strong commitment to environmental sustainability. Digitalisation. The growing use of digital tools in procurement, indicating a shift towards more efficient and transparent processes. Contract follow-up remains a high priority, ensuring that procurement contracts are executed effectively and that the intended benefits are realised. Looking ahead, it is clear that Norway's procurement sector is moving towards a more data-driven, unified, and sustainable approach, with a strong focus on regulatory compliance. The launch of our new platform, Mercell Tendering, aligns perfectly with the forward-looking prospects of the Norwegian public market. Let’s delve into the survey’s findings across key areas for a more advanced and responsive procurement system in the Norwegian market.1. Strategy Beyond DocumentationAlmost half of the DFØ respondents, about 48 percent, have a central unit handling purchases. A team that cares for commercial assessments, contract follow-up across the purchasing portfolio, and systematic reporting to management. Having a strategy in place, which goes beyond mere paperwork, is critical. It gives clear direction and implementation power for all procurement activities. It also helps keep everyone focused on purchasing goods and services through follow-up and measurement. Companies that have a procurement strategy have better senior management buy-in, as well as greater collaboration across the organisation. They are also generally more mature in all areas. About 62 percent of respondent companies have a procurement strategy, whereas 29 percent lack clear rules and governance documents. Strategic use of procurement requires management to do more with the resources they have and stay informed about all procurement key areas. Mercell enables public buyers to stay in control of the entire procurement process from planning to ordering and analysis. All modules are connected on a common architecture, ensuring seamless transfer of data and reducing time spent, manual effort and reuse of information, which in turn contributes to more and more efficient processes.2. Value-added Procurement PhasesLooking at the different procurement process stages, the Norwegian public agencies conduct the most value-added work in the requirements and planning phase, followed by the contract management one. Allocation of resources per procurement phase The Requirements Phase: A Foundation for Success Contract Follow-up: Ensuring Compliance and Efficacy Beginning with the requirements phase, companies invest a significant portion of their resources, with an average allocation of 40%. This phase covers the needs assessment and meticulous planning and lays the groundwork for successful procurement outcomes. In the contract follow-up phase, companies allocate approximately 20% of their resources. Here, the focus shifts towards ensuring compliance and efficacy in contract execution. However, strategic activities tend to take a backseat, raising questions about the optimal distribution of resources across different procurement stages. Overall, buyers tend to prioritise operational tasks over strategic activities. Essential tasks like market and risk analyses are occasionally sidelined, while activities related to competition implementation (keeping up with deadlines) are diligently addressed. Moving forward, for optimal procurement outcomes, public agencies are advised to strike a balance between operational efficiency and strategic foresight.3. Expertise DeficitShockingly, only one in five contracting authorities feel adequately equipped in procurement to foster innovation and uphold human rights standards. This deficiency extends to areas like contract follow-up and market dialogue. Contract Follow-up: A Critical ComponentAmong the various procurement processes, contract follow-up emerges the weakest link, with a mere 46 percent reporting a satisfactory level of expertise. Adequate proficiency in contract follow-up is indispensable for the public sector's successful transition toward sustainability and careful resource use. Recognizing this, 1 in 2 companies plan to invest in a Contract Lifecycle Management (CLM) tool in the next three years, according to PWC. More public organisations take a proactive approach to ensuring that wages, working conditions, and other critical factors are rigorously monitored and upheld throughout the contract lifetime. The evolution of contract follow-up and procurement strategies highlights the growing importance of ethical considerations in procurement.At Mercell, Contract Lifecycle Management is seen as a strategic tool that offers a clear overview of all contracts, which empowers public buyers to act proactively, minimise risks, and unlock potential savings from drafting to execution. Even the less experienced procurement professionals can create new contracts with templates and expedite the process with electronic signatures, reducing manual work and increasing process efficiency. With tools to monitor deadlines and address deviations through direct claims to suppliers, we offer dynamic follow-up within the system. Automatically alert suppliers about needed actions or quickly propose contract claims in case of violations or disputes. Analytical Skills: Bridging the GapAnalytics readiness remains another area of concern, with only 21 percent of procurement professionals indicating sufficient expertise. This poses a significant challenge in providing businesses with the analytical insights needed for informed decision-making and prioritisation.Public buyers are tasked with the critical role of allocating resources effectively, ensuring transparency, and delivering value for public funds. By leveraging data analytics, professionals within the purchasing unit can identify trends, anticipate market fluctuations, and prioritise purchasing decisions. Mercell recognizes the importance of integrating detailed cost analysis into procurement systems, leading to real-time data analysis, predictive analytics, and performance tracking. By connecting the invoice data, Mercell Spend Analysis empowers public buyers to track individual supplier spend, or track spending across suppliers.Positive Trends in Market DialogueWhile the market is posed by challenges, there are great positive developments. The Norwegian public space engages in more dialogue with its suppliers. This engagement enables a deeper understanding of current and future needs, competitive landscapes, and environmental considerations. Mercell Tendering provides a structured framework for supplier development and innovation. The platform includes tools for supplier follow-up, evaluation, and development, enabling agencies to build strong and effective supplier relationships.4. Environmental Work and InnovationAs per the DFØ survey, environmental goals are no longer an ‘elective subject’, but an area of high priority. Encouragingly, more public sector companies are introducing measures for the majority of prioritised categories, and with stricter climate and environmental requirements for public procurement set to take effect from January 1, 2024.Despite these advances: Only 29% of businesses rigorously follow up on established environmental goals, with time and resources as the main barriers. Just 14% believe their procurement practices have led to substantial reductions in climate and environmental impact. While more companies are facilitating new products and services, only 27% actively explored this, in the past two years. The main reason for seeking innovation is to improve the quality of products and services, followed by the need for time-saving solutions. Achieving these climate and environmental goals requires adequate time, resources, and expertise. The Mercell Supplier Relationship Management module puts the public buyer in the driver's seat, providing the needed tools to set concrete sustainability goals, measure suppliers’ ability to deliver and, not least, establish KPIs that give the buyer confidence when reporting and documenting their sustainability efforts. Whether the main goal is to comply with the Transparency Act, the EU taxonomy or CSDDD, Mercell delivers. 5. DigitalisationThe aim of a fully digital process is to manage the source-to-payment cycle, ensuring buyers receive the correct products and prices as per agreements. Among the DFØ highly mature company respondents, 52 percent experienced significant simplification over the past two years due to digitization. They benefited from more efficient purchases, streamlined processes, fewer errors, and better regulatory compliance. According to PWC, the procurement space is projected to go 70% digital by 2027, with efficiency gains, transparency, and performance as the main drivers. While ICT and cloud services demand both technical and procurement expertise, only 5 percent of companies have a dedicated plan for procuring these services.At Mercell, our ambition is to take the procurement function out of Excel and Word and into the cloud. Mercell Tendering automates and digitises your procurement processes, from needs assessment, to internal dialogue and tendering, to contract follow-up, ensuring that all information is transferred seamlessly from one step to the next, reducing manual work and increasing process efficiency.The 2024 DFØ survey highlights the dynamic progress within Norway's public procurement sector. It reveals significant progress in streamlining processes, advancing environmental sustainability, and embracing digitalisation. ConclusionAs Norway continues to prioritise regulatory compliance and data-driven decision-making, the introduction of platforms like Mercell Tendering aligns seamlessly with these forward-looking initiatives. The insights from this survey are crucial for fostering an advanced and responsive procurement system in the Norwegian market.Let us know your thoughts on this survey in the comments!
Incorporating Sustainability into Your Public ProcurementWith Europe’s binding commitment to net-zero emissions by 2050, public procurement is seen as a crucial element in achieving these goals. In the European Union (EU), procurement is set to account for approximately 14% of the GDP, or around €2 trillion annually. With this kind of spending power, public buyers are in a unique position to drive market transformation, set standards, and equally, demand environmentally friendly products and services. By integrating sustainability, procurement processes can ultimately contribute to climate neutrality. But the power of public procurement doesn’t stop there – it’s a trendsetter too. When governments and public institutions lead by example, it becomes difficult to ignore. Their visible commitment in prioritising sustainability, showcasing it as economically feasible and socially beneficial, can inspire the private sector to jump on the green bandwagon. This not only mainstreams sustainable practices but also enables healthy competition and pushes the entire market towards a more eco-conscious mindset. This shift supports the long-term environmental goals outlined in the European Green Deal.While the benefits of sustainable procurement are clear, implementing these practices can pose challenges. Read on to uncover how you can lead the way to a climate-neutral Europe by turning your public procurement processes into sustainable ones.The European Green Deal: Blueprint for SustainabilityIn a circular, competitive economy, "economic growth is decoupled from resource use, while no person and no place are left behind". This core principle is the foundation of the European Green Deal, a framework for action, designed to make Europe the first climate-neutral continent by 2050. Key components of the European Green Deal 42.5% New renewable energy target for 2030 -310Mt Net CO2 removals by 2030 -50% Less chemical pesticides for an eco-friendly food system SourceGreen energy, building renovation, and biodiversity are among the key areas that come to mind when discussing decarbonisation. Yet, public procurement is not to be forgotten. Accounting for around 14% of EU GDP, public procurement is a powerful instrument within the European Green Deal toolbox. The Corporate Sustainability Reporting Directive (CSRD) The EU comes to mandate more detailed disclosures on environmental, social, and governance (ESG) matters with the latest Corporate Sustainability Reporting Directive (CSRD). Closely aligned with the European Green Deal and shaped for enhanced transparency and accountability, this directive holds profound implications for public procurement. Public buyers are now tasked to prioritise sustainability considerations when evaluating suppliers, such as carbon footprint, social responsibility, and resource efficiency. Country-Specific Laws for a Better EnvironmentGlobally, the Sustainable Development Goals (SDGs) chart the path towards a sustainable and inclusive future. Within the EU, 23 member states have up-to-date plans and specific laws to advance sustainable procurement. Several European countries have enacted specific laws to support the EU environment-friendly goals and promote sustainable procurement. Here are some notable examples: Norway: Transparency Act Effective since July 2022, Norway’s Transparency Act mandates large companies to provide detailed reports on how they address human rights and environmental issues throughout their supply chains. Seen as a major step towards ethical and sustainable business practices in the country, the law promotes transparency and accountability, impacting more than 8,000 companies. Netherlands: Sustainable Procurement Manifesto With purchasing power exceeding €73 billion annually, the Dutch government aligns its public procurement with the social goal of "commissioning with ambition and procuring with impact". Their Sustainable Procurement Manifesto mandates public buyers to consider environmental and social criteria when awarding contracts. This long-term, environmentally focused approach has already brought significant changes to public tenders. France: Anti-Waste Law or Loi AGEC Every year, €630 million worth of unsold products are destroyed in France, generating significant waste per person and causing environmental damage that threatens biodiversity. In response, France initiated a transition towards a circular economy with the Anti-Waste Law enacted in 2020. Public procurement supports these efforts by prioritising durable, repairable, and recyclable products. Since the law's implementation, plastic waste has been reduced by 15%. Germany: Federal Climate Change Act To accelerate its path to climate neutrality, Germany adopted a crucial reform known as the Federal Climate Change Act. This law sets legally binding targets to reduce greenhouse gas emissions by 55% by 2030 compared to 1990 levels. The Act outlines specific measures across various sectors, including transport, construction, and energy. How does this impact public procurement? Public Buyers now prioritise low-emission and energy-efficient products and services, thus supporting Germany's climate objectives. This shift ensures that procurement decisions align with the nation's ambitious environmental goals and contribute significantly to reducing the carbon footprint.Incorporating Sustainability into Your Public Procurement With the European Green Deal and various national laws in mind, it's crucial to understand how to integrate sustainability into public procurement processes. This section will provide practical steps and strategies to help your procurement activities align with environmental goals and social responsibility. By exploring these actionable insights, you'll be equipped to make a meaningful impact on sustainability through your procurement decisions. 1. Sustainability Criteria in TendersIncorporating sustainability criteria into your tenders involves adjusting solicitation requirements to include environmental considerations. This implies specifying the use of eco-friendly materials, requiring energy-efficient services and products, and establishing clear weighted criteria in your evaluation metrics.Depending on procurement objectives, criteria such as local supplier recyclability, percentage of renewable energy use, and attention to worker well-being can be included. By applying these measures, sustainability is ensured throughout the procurement process, filtering suppliers with strong environmental credentials. 2. Life Cycle Costing (LCC)Consider Life-Cycle Costing (LCC) when making procurement decisions. While the purchase price is important, it's just one part of the overall cost of owning and disposing of a product or service. LCC covers all expenses incurred throughout the product's lifetime, and the EU provides various sector-specific calculating tools to aid in this process.Sustainable options often prove to be more cost-effective in the long-term due to lower operating and disposal costs. To implement LCC effectively, start by conducting comprehensive analyses for major procurements. Additionally, ensure your procurement officers are trained in LCC methodologies, and use these calculations to inform your procurement decisions. 3. Eco-labels and CertificationsWith so many available product options, eco-labels and certifications simplify the process of finding sustainable alternatives to conventional ones. Eco-labels serve as beacons for sustainable choices, promoting the adoption of responsible product technologies and consumer behaviour while also benefiting the environment.Encourage your suppliers to acquire recognized eco-labels and integrate them into your selection criteria. By prioritising products with these certifications, you contribute to a greener and more sustainable procurement process. 4. Pre-Procurement Market ConsultationsInvolving suppliers and stakeholders early in the procurement process can unveil innovative and sustainable solutions. Organising pre-procurement market consultations provides a platform to communicate your sustainability objectives and gather valuable feedback from potential suppliers.By engaging with the market at this early stage, you foster collaboration and ensure alignment with your sustainability goals, ultimately leading to more effective procurement outcomes. These consultations serve as a vital step in cultivating partnerships and driving positive change within your procurement practices. 5. Monitoring Sustainability ProgressMost EU Public Procurement Units release annual sustainability reports to highlight the environmental and social effects of public contracts. Transparency in this process is vital, as it promotes accountability and allows stakeholders to observe the impact of sustainable procurement policies. This openness can drive continuous improvement and innovation, highlighting both successes and areas needing attention. Moreover, it ensures that procurement strategies are aligned with broader goals like reducing carbon emissions, minimising waste, and promoting social equity.Access to detailed sustainability performance metrics allows procurement managers to refine their strategies based on solid evidence rather than assumptions. This data helps identify which suppliers best meet sustainability objectives, spot potential risks, and find opportunities for more sustainable practices. 6. Cultivating a Culture of SustainabilityCreating a culture of sustainable procurement demands dedication across all organisational levels. Integrating sustainability goals into your overarching strategy involves providing training and allocating resources for your procurement staff. By prioritising sustainability and empowering your team with the necessary tools and support, you lay the foundation for a culture that values ethical and green procurement practices. Encouraging open communication, fostering collaboration, and recognizing achievements in sustainable procurement further solidify this culture, ensuring lasting impact and positive change within your organisation. Embrace Sustainable Procurement with MercellTransitioning to sustainable public procurement is not just an obligation under the European Green Deal; it is an opportunity to lead by example and make a significant impact on the environment. Embracing sustainability in procurement processes requires the right tools to ensure efficiency and compliance. A robust, unified tender platform, like Mercell, can help you embed sustainability at every stage of the procurement lifecycle. Procurement Planning: Embed sustainability right from the start by setting clear procurement goals aligned with your sustainability objectives. Your organisation can rank suppliers based on rigorous sustainability criteria and detailed questionnaires to ensure your procurement aligns with sustainable practices. Whether planning purchases per singular procurement or for entire categories, our platform ensures all internal purchasing needs are reported and managed according to your established sustainability goals.Sourcing & Tendering: Drive sustainable procurement by incorporating sustainability criteria into your sourcing and tendering processes. Prompt suppliers to submit proposals that address key ESG considerations. Benefit from a comprehensive library of default sustainability criteria, enabling all buyers to maintain high sustainability standards consistently.Contract Lifecycle Management: Ensure ongoing compliance and performance with robust contract management tools. Make sure that all contractual obligations are met with a focus on environmental and social impact, by monitoring key performance indicators (KPIs) that reflect your sustainability goals. Supplier Relationship Management: Build strong, sustainable partnerships with our advanced supplier relationship management tools. Set and monitor concrete sustainability goals, evaluate supplier performance, and establish KPIs to ensure transparency and accountability. Key performance indicators (KPIs) may include: Percentage of contracts incorporating sustainability criteria. Reduction in greenhouse gas emissions from procured products. Volume of waste reduced or recycled through procurement efforts. Our platform helps you maintain up-to-date supplier certificates and compliance documents, streamlines pre-qualification, and ranks suppliers based on sustainability criteria. This transparency demonstrates your commitment to sustainability and provides valuable insights to improve your procurement strategies. With our platform, you can confidently report and document your suppliers' sustainability efforts, ensuring compliance with the Transparency Act, the EU taxonomy, or CSDD requirements.
Dear Connectors, we have great news,Mercell’s embedded AI is now available for Mercell Tendering in Norway, Sweden, Finland and The Netherlands! Thanks to the fantastic efforts of our Tech team, Tender Summarisation and Better Tender Matching have been rolled out in the above countries This marks a significant milestone for our platforms that will bring a lot of value to you, our customer.Our new AI capabilities will break down the complexity of doing public business, and enable you to more easily qualify for tenders that match your services and profile. However, this is just the beginning! We are currently in the process of implementing Tender Summarisation and Better Tender Matching in our Mercell Bidding Platform. We’ll have more information about this implementation at a later date.For now, let’s go into more detail about the new embedded AI features:Tendering SummarisationMercell AI transforms complex tender documents into clear, concise summaries with Tender Summaries. You’ll get increased clarity on tender details, uncover hidden insights, and reduce the time needed to evaluate opportunities. With Mercell AI’s tendering summaries you will more easily understand provided business opportunities that come your way.Better Tender MatchingDiscover the most relevant business opportunities with access to our Better Tendering Matching AI. We will supply you with opportunities that you may have missed, and bring you closer to the tenders that matter the most. This is intended to increase your chances of winning and giving you a further competitive edge in your chosen market.We can’t wait to hear what you think about our new AI features! Let us know your thoughts in the comments.
Public procurement, whether aimed at enhancing public services or addressing sustainability goals, involves extensive tender documentation. Meeting various requirements, certifications, and regulations leads to significant workload, negotiation rounds, data management, and cost control for both buyers and suppliers. Navigating these complexities in this dynamic environment requires careful management within tight deadlines and often limited resources. The public sector is gradually incorporating artificial intelligence (AI) into public procurement, introducing advanced tools and capabilities that streamline the tender process. AI effectively manages large volumes of data, mitigates errors, and improves efficiency, resulting in more effective and streamlined procurement processes. Mercell is a leading public tendering & bidding SaaS vendor leveraging AI to redefine how public procurement operates. In this interview, Ibrahim En-nali, CTO of Mercell, discusses the company’s AI vision, new AI capabilities, upcoming initiatives, and how AI creates benefits and efficiencies for both buyers and suppliers. Q: What are the latest AI trends shaping public procurement?The current AI trends in public procurement are both exciting and transformative. Generative AI is one of the most prominent trends. It assists in creating tenders and corresponding bids by leveraging accumulated knowledge from both buyers and suppliers. This can include suggestions and validations against a comprehensive knowledge base, significantly reducing the manual work involved. In fact, it’s estimated that 50-80% of current manual tasks in public procurement could be automated using AI, allowing a better focus on more strategic activities.In addition to generative AI, targeted AI applications are also on the rise. These applications are tailored to address unique challenges and requirements specific to procurement operations. By leveraging historical data, real-time information feeds, and predictive analytics, targeted AI can provide specialised procurement assistance, simulate bids, enhance analytics, and even predict future events. Q: Ibrahim, can you share Mercell’s vision in the context of AI and its role in public procurement?Absolutely. Mercell's overarching goal is to enhance public procurement processes, fostering transparency, efficiency, and innovation. AI aligns perfectly with our platform strategy, significantly enhancing its effectiveness. By automating tasks and providing actionable insights, AI simplifies interactions between buyers and suppliers throughout the tendering process. This approach ensures better outcomes for all parties involved. Our commitment is to continually support our customers by addressing critical pain points such as managing procurement specifications, overcoming language barriers, and identifying potential risks. Unlike competitors focusing on one market segment, Mercell caters to both buyers and suppliers, and we are investing in cutting-edge AI features and tools across our solutions. Q: Where is Mercell embedding AI across its solutions?At Mercell, we prioritise the integration of AI capabilities throughout our entire portfolio, covering every stage of the procurement lifecycle. Our initial focus is on incorporating AI into our Tender Discovery solution, designed to boost supplier engagement and enhance competition in public spending. Tender documentation is often intricate and extensive, with unique requirements and industry-specific terminology. By leveraging state-of-the-art AI technologies in Natural Language Processing (NLP) for semantic search capabilities, all Mercell supplier customers will have access to our new embedded Tender Summarisation AI capability. This empowers suppliers to distil lengthy documents into concise, easy-to-understand tender summaries. For example, a regular 50+ pages tender specification document can be condensed into a single page. Our advanced AI algorithms enable our customers to efficiently highlight and extract crucial details such as project descriptions, budget estimates, submission deadlines, supplier qualifications, and bid submission instructions.Additionally, we are also introducing Better Tender Matching, designed to help customers discover the most relevant opportunities with unparalleled accuracy. By analysing key aspects such as type of service or goods, location, and other relevant factors extracted from tenders, the AI algorithm accurately pairs eligible suppliers with new tender opportunities. Our algorithm calculates the degree of match based on the provided criterias. This is just the beginning of our AI journey. We are committed to leveraging AI to address specific pain points that our customers face. Q: You’ve mentioned competition in this space. How does Mercell differentiate itself in terms of AI capabilities?Mercell stands out in several ways. Firstly, we recognize the importance of data quality in the performance, accuracy, and reliability of our new AI capabilities. Upholding high-quality practices across the data lifecycle is key for Mercell.With our extensive experience in the market, we ensure a trustworthy foundation of data entry integrity. This wealth of knowledge, enriched with historical tender data points, enables us to generate accurate, actionable insights, providing greater value for our customers. Our deep understanding of the market allows us to train AI models effectively, offer accurate and reliable predictions, and ensure the reliability and effectiveness of our solutions. This experience provides us with better insights for refining our AI capabilities, continually enhancing our ability to meet the needs of both buyers and suppliers.Additionally, Mercell differentiates itself by offering an end-to-end solution that spans the entire public procurement journey. As a leading provider in this business, we have the unique advantage of being able to seamlessly integrate both tender and bidding data in our AI models. This holistic approach ensures that actionable insights are extracted from the entire procurement process. Q: Ethical considerations are at the forefront of AI development. How does Mercell ensure ethical procurement and regulatory compliance when deploying AI?Mercell places a strong emphasis on ethical considerations and regulatory compliance in the deployment of AI. We implement robust data privacy and security measures to safeguard information. Particularly noteworthy is our approach to using technologies that do not rely on customer data, reflecting our dedication to ethical and transparent practices. The data sources include publicly available data, such as government procurement websites and industry-specific tender platforms. These sources comply with relevant laws and regulations, operating under legal frameworks that ensure transparency, bias mitigation, and fairness. The processing of this data adheres to these legal standards, ensuring compliance with applicable legal framework. Q: Looking ahead, what future AI capabilities do you foresee being integrated into the Mercell platform?Our commitment of advancing the public sector into an AI-native environment is shown in the R&D resources we are allocating to our solution roadmap. In our pursuit of future AI capabilities, we are also considering partnerships with other companies, academia, and research organisations to stay at the forefront of innovation. Among our future AI enhancements, we are interested in improving how suppliers can monitor their market and identify opportunities with ease powered by AI. We want to limit friction and complexity related to monitoring procurement opportunities.All of the future AI capabilities that we have on our roadmap are poised to address all the core pain points our customers are facing, with the goal of reshaping procurement processes, and opening up new business opportunities. Q: It’s clear that AI is here to transform public procurement.To conclude, what advice would you give to public buyers and suppliers alike interested in adopting AI technologies?In this era of AI-driven transformation, public sector organisations and suppliers stand to benefit greatly from the collaborative efforts of experienced partners like Mercell.By leveraging their deep understanding of AI technologies and extensive industry experience, these partners can provide tailored solutions that address specific procurement challenges and maximise the value of AI investments. Whether it's optimising tendering processes, enhancing supplier management, or ensuring regulatory compliance, the expertise and support offered by seasoned partners are indispensable in navigating the complexities of AI adoption and driving tangible results within public procurement.
OSLO, Norway, May 27, 2024 – Mercell, the European Leading tender and bidding platform, is thrilled to announce the upcoming launch of new capabilities designed to boost supplier engagement and enhance competition in public spending. Starting in June, Mercell will introduce new AI-powered features along with a new portal aimed at educating and supporting suppliers in their journey to succeed in public business.Background and RationaleCommenting on the need for these advancements, Terje Wibe, CEO of Mercell, stated, "We know from the European Court of Auditor’s report that there in general is too low competition in the public sector. Widely distributed tenders lead to fair and open competition which will often lead to more attractive offers as well as improved quality and service. Given that we are dealing with taxpayers' money, it is crucial for the public sector to maximise value. While we provide a digital platform for buyers and suppliers to do business, Mercell also plays a crucial role in helping suppliers discover and enter the public sector business, which for most suppliers offers great opportunities to win attractive contracts with the public sector.”Introducing Mercell DealWise: A New Supplier PortalWith the commitment to foster supplier success, Mercell is proud to introduce DealWise, a new portal that offers certification for suppliers in public business and provides tips and advice on navigating the complexities of public procurement.This service is designed to empower suppliers with the knowledge and resources needed to compete more effectively.New AI-Powered FeaturesIn addition to DealWise, Mercell is launching AI into the monitoring services to all supplier customers. Customers will have access to tender summarisation, which converts complex procurement documents into clear, concise summaries.This capability provides immediate clarity on procurement details, uncovers hidden insights, and significantly reduces the time required to qualify each opportunity. Mercell is also introducing Better Tender Matching, helping users discover the most relevant opportunities with unparalleled precision.These enhancements simplify the public procurement process, making it easier for businesses to qualify for tenders and increasing their chances of success.By embedding AI into our platform, we open up a world of tenders that might otherwise be overlooked, offering our customers unparalleled advantages in the tendering process.Terje Wibe, CEO at Mercell Exciting Prospects Ahead"We are excited to introduce these AI capabilities, and there is more to come, both for buyers and suppliers. We at Mercell focus strongly on being a leader in technological innovation that provides valuable support and clear benefits for our customers. " said Terje Wibe, CEO at Mercell. "By embedding AI into our platform, we open up a world of tenders that might otherwise be overlooked, offering our customers unparalleled advantages in the tendering process."About Mercell:Mercell is the leading European provider of public tendering and bidding technology, dedicated to enhancing connectivity between public buyers and suppliers. Its platform solutions effectively streamline the public procurement journey, fostering increased efficiency and collaboration throughout the tendering process. Covering both small and large procurement needs, Mercell assists customers in realising better opportunity matches and ensuring legislative compliance across all of Europe. For more information, see www.mercell.com
Dear Connectors,Our Tech team has been hard at work on some new features that we are absolutely delighted to share with you. We are getting ready to launch AI capabilities in Mercell.This new development marks a significant milestone for our current and future platforms, bringing new value directly to you.What is Mercell AI?With embedded AI, we’re opening up a world of tenders that can sometimes be overlooked. But that’s not all! The new AI capabilities breaks down the complexity of doing public business and enables you to more easily qualify for tenders that match your services.Two new AI features will be available from June as part of your existing subscription: Tender Summarisation and Better Tender Matching.Tendering SummarisationMercell AI transforms complex tender documents into clear, concise summaries with Tender Summaries. You’ll get increased clarity on tender details, uncover hidden insights, and reduce the time needed to evaluate opportunities. With Mercell AI’s tendering summaries you will more easily understand provided business opportunities that come your way.Better Tender MatchingDiscover the most relevant business opportunities with access to our Better Tendering Matching AI. We will supply you with opportunities that you may have missed, and bring you closer to the tenders that matter the most. This is intended to increase your chances of winning and giving you a further competitive edge in your chosen market.Tender Summarisation will be available in Norway and Sweden from 20 June, 2024! We’ll have more information about additional rollouts at a later date.Mercell with embedded AI makes sure our customers miss nothing, but gain everything.Are you excited about Mercell AI? Let us know your thoughts in the comments!
Public procurement is more than a quest for saving costs. It's about creating a competitive environment for suppliers that fosters innovation - all while maintaining fairness and transparency, (ultimately ensuring the best use of taxpayers' money).However, a recent revelation by the European Court of Auditors sheds light on a worrying shift: Over the past decade, the competitive edge in bidding processes has been declining. What does this mean? We’re inching us closer to a landscape dominated by a handful of familiar faces vying for contracts - which should lead us to rethink our procurement strategies.In this article, we’ll dive into the findings of the EU report, tackle the hurdles suppliers encounter, and, crucially, outline actionable steps buyers can take to breathe new life into supplier competition. In this article: Unpacking the European Court of Auditors' report Six supplier challenges in navigating public procurement How to revitalize supplier engagement: A strategic approach to procurementUnpacking the European Court of Auditors' reportThe European Court of Auditors' recent report on EU public procurement sheds light on significant trends over the last decade.Let’s break down the key findings: 1. Rising trend of direct awardsIn 2021, 15.8% of procurement was through direct awards, indicating a shift towards selecting from prequalified suppliers rather than open bidding. This method, known as 'direct award,' reflects buyers' preference for trusted, specialized suppliers, placing more focus on efficiency and established relationships over wider competitive processes.Direct invites and open competitions have maintained a steady equilibrium in the market. This consistent strategy limits the pool of suppliers, which could potentially lead to fewer project bids. Which then has a direct influence on the diversity and competitiveness of public expenditures. Interestingly, data from the ECA reveals that the rate of direct awards has consistently hovered around 17.5% since 2011, which underscores the stability of this kind of public procurement method. 2. Surge in single-bid proceduresFrom 2011 to 2021, procedures attracting only a single bid increased from 23.5% to 41.8%.This indicates a decline in buyer attractiveness. In other words, leading to fewer competitive tenders and, in some cases, eliminating competition entirely. Which results in less choice and potentially higher costs for the public sector. 3. There’s a reduction in bidder numbersThe average number of bidders per procedure has fallen sharply from 5.7 to 3.2.The effect? Limiting competition greatly affects how the B2G public procurement market works, leading to fewer suppliers in the field.This change could lead to lasting impacts on the market by making it tougher for new suppliers to enter and trade with the public sector, which might affect the quality and affordability of public contracts. 4. It varies across regions and sectorsThe report shows that competition levels vary, with sectors like construction experiencing more competition, while health services and transport see more single-bid situations.Which calls for the need for more sector-specific procurement strategies to boost competition. 5. There’s limited cross-border procurementOnly 5% of contracts are from direct buying across country borders. This opens up a chance for saving money by allowing more cross-border buying in EU procurement. Six supplier challenges in navigating public procurementExploring the public procurement field comes with major challenges for suppliers, particularly due to the high entry barriers that keep smaller SMEs from accessing public contracts.These challenges hold suppliers back from joining in and also dampen competition and innovation in the market. Here's a look at the 6 main hurdles suppliers face: 1. Navigating complex bidding processesSmall and medium-sized enterprises (SMEs) frequently encounter high entry barriers and substantial costs when considering entering the public spending market, primarily due to the intricate bidding process. Detailed paperwork and strict administrative criteria can overwhelm these companies - keeping these smaller players from even trying.The EU report highlights a significant issue: The time it takes to decide on a contract award has notably increased, from 62.5 days in 2011 to 96.4 days in 2021. This doesn't even include the time spent on appeal procedures against award decisions. A lengthy process like that adds significantly to the workload and stress involved in bidding, especially for smaller businesses. It's not just about extra paperwork, it's about the uncertainty and financial pressure that disproportionately affect SMEs. 2. Meeting high certification standardsA lot of contracts require suppliers to hold specific certifications or meet high industry standards, which can be both expensive and time-consuming for SMEs to obtain, effectively limiting their market access. 3. Overcoming information gapsAnother obstacle for SMEs is simply being unaware of available procurement opportunities. This kind of information asymmetry favors larger enterprises that have more resources to dedicate to finding these opportunities. 4. Dealing with resource limitationsThe financial and human resource demands of preparing bids, conducting market research, and meeting compliance requirements can stretch SMEs thin. In other words, making it difficult for them to compete effectively. 5. Bridging the experience divideLess experienced SMEs can struggle with understanding the intricacies of procurement processes, evaluating risks accurately, and negotiating terms effectively. Which puts them at a disadvantage from the get-go. 6. Improving communicationLastly, poor communication between public sector buyers and suppliers can result in SMEs lacking the essential information to fulfill procurement criteria. How to revitalize supplier engagement: A strategic approach to procurementIn the complex world of public procurement, improving supplier involvement requires a blend of understanding external market forces and internal company dynamics. That’s why it's essential for procurement officers to effectively manage and align with internal stakeholders. Why? Because this alignment ensures that procurement strategies are not only understood across the organization but also fully supported. Steering the procurement process in a direction that focuses on fostering competition, managing suppliers effectively, and choosing functional over technical requirements is key.How can procurement officers influence and align internal stakeholder dynamics for better outcomes?Procurement officers are at a critical junction, dealing with pressures from both outside the organization and within. A common challenge is the broad lack of understanding about procurement among internal teams. Overcoming this challenge involves:Highlighting the importance of competition: It’s vital to show internal teams why a competitive market is essential for the best procurement outcomes.Focusing on supplier management: It's about persuading internal groups of the importance of strong supplier management to build beneficial relationships.Prioritizing any functional requirements: Highlighting their alignment with business goals and their flexibility over rigid technical specifications: Better overall business alignment: Functional requirements help procurement efforts support broad business objectives, improving supplier management and cost effectiveness. Adopting clear communication: Using simple language to describe needs helps everyone involved understand the project’s goals, bridging the gap between technical and non-technical stakeholders. Flexibility and adaptability: Focusing on what needs to be achieved at the time allows for easier changes as business needs grow. Vendor evaluation: Beginning with functional needs in vendor selection guarantees that solutions fulfill crucial requirements before delving into technical specifics. Proactive communication: Stressing the importance of announcing tenders early can prepare both the market and internal teams, improving transparency and outreach.Strategies for enhancing procurement: Aligning business and market needsProcurement isn't just buying and selling; it's about addressing the bigger needs of departments. It’s about guiding departments to see the value in competition, manage suppliers well, and prioritize practical needs over technical details. The goal is to build a procurement process that’s not only competitive but also matches the strategic goals of departments.So, to keep competition healthy throughout the procurement process, especially during tender preparation, it’s crucial to:Ensure open and early communication to make the procurement process clearer for any potential suppliers. Carry out in-depth market research and outreach to understand and connect with the supplier community. Customize contract opportunities to fit a wide range of suppliers, from small businesses to large corporations, which helps encourage innovation and diversity. Keep evaluations fair and objective, and offer constructive feedback to help improve all future proposals.So by focusing on these strategies, procurement officers can create a dynamic, inclusive, and innovative procurement ecosystem. A system that both supports the organization's long-term goals — and the needs of its stakeholders. ConclusionAs we navigate the evolving terrain of public procurement, it's clear that a shift in strategies is crucial. By tuning into internal stakeholder expectations and focusing on essentials like competition, practical needs, and early market engagement, procurement officers are set to make the process of buying goods and services much more dynamic and appealing. This approach not only addresses any immediate business requirements - but also gears organizations up for more success in a dynamic, fast-paced market. Prioritizing this change means we’ll create a lively, fair, and transparent space in public procurement. (This article was originally posted to mercell.com and has been republished here)
Diving into the EU public procurement scene? Brace yourself for a realm where, once you step through the threshold, abundant opportunities await.The latest findings from the European Court of Auditors, spotlighted in Special Report 28/2023, introduce us to a shifting landscape that holds new avenues for suppliers to explore.Here, we'll unravel the significance of these shifts, guiding you on how to excel in this evolving market. Plus, discover strategies to harness the potential of the public procurement sector and smoothly navigate its waters, positioning yourself in a market that holds huge potential for suppliers.In this article: Understanding the drop: Insights from the European Court of Auditors' Report Public Procurement and the Winning Edge for SMEs Mastering the EU procurement market: Strategies for suppliers to navigate and thrive Future insights: Evolving EU public procurement landscape ConclusionUnderstanding the drop: Insights from the European Court of Auditors' reportThe European Court of Auditors' new report transforms our view of EU public procurement.It dives deep into a decade's market competitiveness in works, goods, and services, using TED data to spotlight key trends like 'no bid' cases and single-bidder situations.Let's explore the major findings and trends it reveals:Direct awards are trending up: More and more EU public buyers are picking companies directly, skipping the open bidding process. In 2021, this was clear in roughly 15.8% of all EU procurement procedures, indicating a dip in competition. Single-bid procedures are on the rise: Between 2011 and 2021, cases with just one bid soared from 23.5% to 41.8%. This increase highlights a concerning decrease in competitive tenders, leading to some processes finishing with only a single bid, or sometimes none. Bidder numbers are dropping: The average bidders per procedure have decreased from 5.7 to 3.2, almost cutting the competition in half. Different trends in regions and sectors: The report reveals varied bidding trends across areas and industries. Construction, for instance, is seeing more competition, whereas health services and transport are increasingly facing single-bid situations. Cross-border procurement remains limited: Interestingly, only 5% of contracts are awarded through direct cross-border procurements. This low figure shows that few procurement contracts in the EU go to suppliers from other member states, suggesting a big opportunity to boost and ease cross-border procurement within the EU.What do these trends spell out for suppliers? The message is unmistakable: The market is contracting, and the heat of competition is cooling down. With fewer bids being submitted, an uptick in direct awards, and more single-bid situations coming to light, we're looking at a marketplace that's becoming increasingly less crowded. This shift opens a golden window for suppliers considering market entry, as the odds of clinching contracts are notably improving.The dip in competition stems from three hurdles: complex bidding processes, stringent standards, and a lack of procurement knowledge and resources. These barriers, though daunting, are not unbeatable. Acknowledging them is key to leveraging the less competitive market to your advantage. Public procurement and the winning edge for SMEsDive into public procurement, and you'll find a world where SMEs have a real edge. Let's explore how this can be your launchpad to success: 1. Expansive market opportunitiesThe public procurement market is vast, spending about €2 trillion yearly, which is 14% of the EU's total economic output. It's an arena where your business can secure dependable, long-term contracts with various government entities. This isn't just about making sales; it's about establishing a foothold in a stable and lucrative market that can sustain your business's growth over time. 2. Stable revenue streamsOne of the hallmarks of public contracts is their reliability. They offer a consistent revenue flow, akin to a financial lifeline for businesses. This predictability is invaluable, enabling more accurate forecasting and strategic planning. In a world where cash flow is king, securing a public contract means stabilizing your kingdom's finances. 3. Diverse contracting nichesPublic procurement encompasses a vast array of goods and services, from basic supplies to complex infrastructure projects. This diversity opens the door for businesses of all kinds to find their niche. Whether you specialize in IT solutions, consulting, or construction, there's a demand in the public sector that aligns with your expertise. 4. Equitable competitionThe public procurement process is designed to level the playing field, allowing SMEs to compete with larger entities on a basis of quality, innovation, and value, rather than sheer scale. This emphasis on fair competition encourages a merit-based selection process, offering smaller businesses a genuine opportunity to win contracts. 5. Enhanced visibility and networkingSecuring a public contract does more than just boost your revenue; it elevates your business's profile. It connects you with key decision-makers, broadens your professional network, and enhances your market credibility. This visibility can be a catalyst for further growth, opening doors to new opportunities and collaborations. 6. Innovation and sustainability incentivesThe public sector is increasingly prioritizing innovative solutions and sustainable practices. For agile SMEs, this trend represents a chance to stand out by offering cutting-edge, eco-friendly products or services. It's an opportunity to not just participate in the market but to lead it, shaping future trends and preferences. 7. Capacity and capability buildingNavigating the public procurement process is a rigorous exercise that can strengthen your business from the inside out. It demands a deep understanding of compliance, risk management, and operational efficiency, fostering a culture of continuous improvement. This experience doesn't just prepare you for more public contracts; it enhances your business's overall resilience and competitiveness. 8. Contractual security and transparencyPublic contracts come with a level of security and predictability that's hard to find in the private sector. Clear terms, scheduled payments, and established dispute resolution mechanisms provide a safeguarded environment for your business operations. This framework of transparency and legal protection is particularly appealing, reducing the risks typically associated with business transactions. By delving into public procurement, your business isn't just chasing contracts; it's embracing an opportunity for stability, growth, and innovation. This sector offers a unique blend of challenges and rewards, making it a fertile ground for SMEs ready to expand their horizons and solidify their market presence. Mastering the EU procurement market: Strategies for suppliers to navigate and thriveNavigating the EU procurement market successfully means turning its complexities into your advantages. Here’s a streamlined approach to not just survive but thrive: 1. Getting to know the terrainDive Into market research: It’s crucial to get a grip on the types of contracts out there, what public buyers are looking for, and where your offerings fit in. Keeping tabs on upcoming opportunities through procurement portals can give you the upper hand. Learn and network: Hit the books and the network circuit. Forums, workshops, and seminars are not just about learning; they’re your ticket to insider insights and making connections that count. 2. Engaging early and influencing decisionsInitiate conversations: Knowing when contracts are up for renewal and getting in touch early can shape tender criteria in your favor. It’s about making sure your solutions are seen as the perfect fit from the get-go. Sell your value: Before the tendering even starts, make sure procurement officials know why your offerings are what they need. Highlighting your value early sets the stage for a successful bid. 3. Crafting winning bidsTailor your responses: Go beyond the basics. Show that you understand not just the requirements but the underlying needs. Your proposals should scream, "I get what you’re really looking for." Stand out with quality and innovation: Quality and innovation aren’t just buzzwords; they’re your bid’s best friends. Showcase how your solutions bring extra value to the table. Your strategy playbookStay informed: Keep a close watch on procurement portals and announcements. Being in the know lets you spot opportunities and get your ducks in a row early. Boost your credibility: Registering with procurement databases and getting the right certifications can make all the difference. They signal that you’re a serious player. Build relationships: Networking isn’t just schmoozing. It’s about creating partnerships and gaining insights that can lead to real opportunities. Collaborate for bigger wins: Sometimes, joining forces with larger companies can open doors to contracts that might have been just out of reach. Emphasize what sets you apart: It’s all about showing the value and quality of what you offer. Remember, the public sector is on the lookout for solutions that tick the box for sustainability and innovation. Prepare meticulously: Each bid should be crafted to highlight why you’re the best choice, addressing all requirements and showcasing your unique selling points. Make technology work for you: E-procurement platforms and digital tools aren’t just convenient; they’re game changers. Get comfortable with them. Never stop learning: Take advantage of training programs and resources. They can sharpen your understanding of procurement rules and best practices. Keep an eye out: Regularly monitor for new tenders and set alerts for keywords in your sector. Being proactive is key. Persistence pays off: Keep pushing in the challenging world of procurement; don't lose heart. Each bid teaches you something new, and by gathering insights from winning bids, you can enhance your future proposals. Patience eventually leads to achievement. Future insights: Evolving EU public procurement landscapeThe EU public procurement sector is set for transformative changes, promising a more accessible and equitable market for SMEs. Here’s a snapshot of the upcoming landscape: 1. Legislative reformsExpect policy shifts simplifying the bidding process and revamping competition rules, aimed at benefiting smaller suppliers and fostering a fairer environment in economically uncertain times. 2. Digital revolutionAdvancements in AI and machine learning are revolutionizing e-procurement, enhancing efficiency and decision-making. This tech leap offers new avenues for supplier engagement. 3. Market dynamicsA move towards transparency is leveling the playing field for SMEs against larger corporations, with cross-border procurements expanding the competitive landscape. 4. Sustainable and social procurementThe EU is prioritizing eco-friendly and socially responsible criteria in public procurement. This approach favors sustainable products and services, requiring suppliers to adhere to high social standards. Key future trends include:We're introducing mandatory environmental standards, aligning with green procurement and the principles of the circular economy. Encouraging innovation by leveraging e-procurement and analytics to streamline our processes. Focusing on professionalizing buyers to enhance procurement skills, ensuring more effective use of public funds. Strengthening transparency and integrity with stricter rules, ensuring fairness and trust in procurement processes. Promoting cooperative procurement, pooling resources across EU states for greater efficiency and improved outcomes. Prioritizing social impact by focusing on job creation, fair wages, and diversity, which benefits SMEs and social enterprises. ConclusionThe European Court of Auditors' report highlights low competition in EU public procurement, creating a window of opportunity for suppliers and paving the way for a more dynamic and open bidding environment.With reforms on the horizon aiming to ease access for newcomers, especially the smaller entities keen to prove their worth, the landscape is set to become more dynamic. This shift invites a surge in competition. For suppliers, mere participation won't suffice; standing out through embracing tech innovations and aligning with public sector developments is key. Facing the future of EU procurement effectively means proactively adapting to these upcoming legislative adjustments and gearing up for the ensuing competitive surge.’(This article was initially posted on Mercell.com and has been re-posted here with permission) What are your thoughts about the new EU report? Leave them in the comments below!
For the past few months, eForms have set a new standard for how we publish a tender. We understand that this approach might take some time to get used to. If you’re finding these new publication forms a bit challenging, don’t worry. We’re here to guide you through it. In this article, Julien Louvrier, our Product Manager of eForms implementation, provides you with all the ins and outs regarding eForms. From the context and the European Commission’s envisioned goals, to our platform’s compatibility. So, whether you're a seasoned professional or new to using eForms, let’s dive in together. The reason behind eFormsWith eForms, the European Commission provides a tailorable set of notices that can be used to advertise all kinds of tenders at both national and European levels across EU and EEA countries. The main envisioned goal of the European Commission is to gain more control over European tender data, and to create more data points. The idea is to support member states to make well-informed and data-driven decisions about their public spending. In addition, eForms, according to the European Commission, will: Increase transparency; Help identify corruption; Support buyers in dividing their large projects into smaller parts for improved accessibility for smaller businesses to public procurement; Make it easier for businesses and organisations to find procurement notices corresponding to their industry and location;Since eForms have only been in operation for a few months, it's premature to determine whether these goals have been achieved and whether they have offered any improvements. The challenge of launching eFormseForms needed to be implemented in national eProcurement systems across Europe, but also tailored to meet each nation’s specific requirements. This means they were not off-the-shelf legislation that policymakers could hand over for implementation. Instead, national authorities had to sit down with the stakeholders to decide how various attributes of eForms would be implemented locally. While Members States were considering how to tailor eForms to their needs, the Publications office of the European Union was developing the new forms' technical specifications. These specifications were still in the making when system providers such as Mercell had to start to work on the implementation. The eForms’ technical specifications continued to evolve along the way, and are still not finished. eForms’ rollout amid uncertaintyThe transition to eForms introduced a significant amount of new information, including new fields, new rules, and new notices. This shift was marked by uncertainty, as during the initial rollout of eForms, not all member states had already determined which fields would be mandatory or optional, and in countries where eForms was to be used for advertising below threshold procurements, the authorities had to manage without the specifications from the Commission. We understand that as a buyer, this meant a considerable amount of new information for you to process. It requires a constant effort to navigate through these continual changes and to stay up to date with the latest specifications. This applies not only to us while we ensure our systems remain compliant, but also to you as a buyer, having to effectively manage and adapt to these complexities. However, there is now a better understanding of the mandatory fields in eForms for above-threshold procurements. The European Commission has provided a comprehensive overview of all the various fields, which you can find here. Ensuring our platform’s compliance with the eForms directiveIn August 2023 in Finland, in October 2023 in the rest of Europe, we introduced the Mercell Notice Editor. This brand-new interface gives you access to all the forms defined by the eForms regulation and ensures you can publish compliant notices. It features the “My Checklist”-widget which guides you through the required fields and supports you until the notice is ready for publication. The status of your notice is visible at all times so that you can safely confirm its state of readiness.Since this module has gone live, we have continuously improved our grasp of eForms' required fields and rules. We have not only ensured that buyers can continue to publish their procurements, but we have also focused on enhancing your experience in the Notice Editor:The translations have been improved; The navigation of errors has been refined; And more importantly, we are continuously upgrading the rules, the fields and the code lists based on the regular releases made by the Publications office. Upcoming enhancements to Mercell’s solutionAs eForms are relatively recent, they require constant updates. This isn’t just the case for our systems, but it’s a reality across the entire European Union. These are some of the latest enhancements in the Notice Editor: We have upgraded the responsiveness of the Notice Editor to be fully functional on smaller laptops, tablets, and larger mobile phones, allowing you to use the Notice Editor whenever and wherever needed. The display of time zones is being improved in eForms, which facilitates the validation of dates and times. The possibility of copying data from one lot to another to reduce the burden of entering the same values multiple times is being introduced as a beta feature in Finland and Sweden. We’re also focusing on the development of pre-filled fields. Currently, not all fields you might expect to be automatically populated are set up this way. Our ambition is to have as many fields as possible automatically filled in, thereby reducing manual entry and minimising potential errors, which is a significant time-saver.We are proud to share that the module is becoming more intuitive and user-friendly. Our current focus is on improving the help texts and tool tips to ensure a smoother experience while filling in eForms. What the future holdsWe’re committed to continuously improving and optimising our services and products. This year’s prime focus is to keep upgrading the rules governing the notices based on the Publications office’s latest releases. We are currently rolling out eForms 1.10. We will also implement the fields introduced by the amending regulation around the International Procurement Instrument (IPI) and the Foreign Subsidy Regulation (FSR). Despite the various challenges, eForms have the potential to transform the way we publish tenders. Their implementation is more than just a procedural change, it's a step towards a more transparent and efficient system paving the way for a more open and accessible public sector. Frequently Asked QuestionsHow can I be sure that I have filled all the required fields in the eForm? You can fill out the eForm with confidence by utilizing the “My Checklist” feature in the Notice Editor. It efficiently guides you through every step, highlighting mandatory fields and tasks, and groups required fields by lots for easy navigation. With this checklist at your side, every essential field will be addressed, streamlining your form-filling experience and ensuring complete accuracy.How does eForms differ from the previous method of advertising tenders?eForms differ from the previous standard in that they are designed for digital use, not for printing and manual completion. These forms are intended to be automatically generated by tendering platforms, aligning with the Commission's vision of "digital by design. Do you have a question about eForms that we haven’t answered here? Drop them in the comments below!
Dear ConnectorsWe are incredibly excited to reveal that Mercell.com has gotten a facelift! The website is now sporting a bold new design to serve as the digital front door into the Mercell universe of products and services.Head on over to Mercell.com right now to take a look!With this redesign we’re taking a new, customer centric approach in our communication, focusing on the needs of you, the customer. Navigation will be streamlined for both buyers and suppliers, but that’s not all! We’ll be rolling out more updates to the website in the coming weeksDo you have any questions or comments about the new website? Let us know in the comments below.
(Please note: This is an article from our website that has been re-posted to our community)In this article, we will explore three more factors to consider when forming a bid on a tender you find appealing. Because there is no reason to participate and waste resources, if you have nearly zero per cent chances of winning. So here are a few things to consider.1. Can you offer something unique to the public market?Without a special competitive advantage, you are probably quite similar to the rest of the competitors, or probably behind a competitor who has just something unique to offer.If price counts for 50% of the evaluation score or more, you can gamble on going with really low prices, but how will that affect your revenue? Consider if there might be other factors that could give you the win which may not even be part of the tender description. The contractors may have overlooked new trends or perspectives.If you have something unique to offer, make sure to present this a good way in the offer. If you have a product with very special properties, or based on a new technology, then it needs to be hightlighted in a way that allows the client to reward it with a high score. This is where the award criteria can really make a difference. Read the criteria carefully and familiarize yourself thoroughly with the client's needs and goals.It doesn't help to have a unique product, if the client can not reward the uniqueness of the evaluation, and this is exactly where your strategic competitors can have an advantage if they have been in dialogue with the client beforehand. Sometimes you gain more insight from these dialogues than from reading the tender description. 2. Do you have at least three ideal references?It's no secret that the many public sector clients feel special. Everyone thinks they have very special needs, when the truth is that they are actually quite similar, and in many aspects a reflection of the private sector.In many competitions, you must have references to be able to participate, and generally the offer is evaluated on what you or your company has delivered of similar assignments in the past. This concerns both goods, solutions, services or a combination, so here the advice is quite general.If a qualification requirement is references, e.g. three references in the last 3 years, it is basically sufficient that you meet the minimum requirement to participate in the competition. But the challenge can often be to bring out the relevance in the reference assignments you choose to present.Read the tender: What are the qualification requirements, requirements and criteria in a tender?What you think is relevant may be something other than what the client thinks is relevant. The reference assignments must therefore be described in a way that allows the client to actually assess what you have submitted previously, regardless of whether it concerns qualification requirements or award criteria.In addition to the mandatory sections - who the customer was, and the delivery date and size of the contract, a good reference description should have the following structure:How did you get the assignment? Did you win a tender competition or was it a direct tender? Why did you get the assignment? What was the task? Give a brief description of the assignment and current challenges. How did you go about solving the task? This is the point where you should devote the most space. Explain your methodology and how you perform quality assurance, and if it is relevant, also mention environmental considerations. Don't underestimate a good brand narrative about your approach to sustainability. What results did you achieve? Results are crucial, because that is after all why the client has announced the competition; they have formed a picture of what results they want to achieve.With this structure, you give the buyer a context, and he will have a better understanding of what you can actually achieve from results. It should not be too long, maximum one page.But be careful! If the tender documents say anything about restrictions on what and how much you can deliver of reference descriptions, you must follow this slavishly. In the worst case, you may be rejected if you go beyond the requirements set. Don't add too many references. Add the best ones.3. Does the client already know you?From a purely objective point of view, this should have no bearing on your chance of winning, but think a little about your own situation: Who would you rather renewed your bathroom? Someone you know and trust, or the cheapest on the market? At which car dealer would you like to buy a car? Connections build trust.If the client has in-depth knowledge of your company from someone they know, it is a great advantage, as long as they have positive experiences of course. This may be even more important if it is an agreement of a certain duration, and not least if the agreement's success factors are competence exchange and strategic cooperation, or if what was delivered were typical bottleneck products.If there is a framework agreement where you have to compete against the current supplier, the client might have doubts about having to change suppliers, if the suppliers you use are different. This probably applies especially if they envisage having to switch to a completely unknown company. Make them feel safe and be transparent about your own supply chains. It could make a difference.Always be open to dialogue, try to get more insights beyond the tender description from someone who knows the organisation, and don't underestimate the importance of your references.In Mercell's database, you can check the economic potential of any future contract, see who wins all the tenders you are interested in, and find customer lists of all your competitors. Whatever public data you need, we can probably help you out. Good luck!
Mercell had the pleasure of hosting an inspiring workshop in collaboration with Coding Pirates.With a mission to empower tomorrow's tech innovators, we welcomed girls aged 11-15 years old, along with their parents, to our Mercell Copenhagen office. It was an incredible opportunity to inspire young minds and encourage exploration in the world of technology!During the event, our colleagues Sarah Brandt Baumgartner and Morten Grøftehauge delivered an engaging and fun presentation on why they decided to work in tech, setting the stage for an exciting workshop where the kids became time travelers, envisioning a positive future using prototypes and artificial intelligence (AI).We want to extend a huge thank you to everyone who joined us as well as the Coding Pirates team and Michala Muhs for the great collaboration.Let's continue to inspire and support the next generation of tech leaders!
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