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:

1. Tackling the challenges of public procurement data
2. 4 key analytics use cases for public procurement
3. Conclusion

Tackling the challenges of complex public procurement data

For 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:

1. There’s legal obligations: Public entities are bound by law to operate transparently and ensure all potential suppliers have a fair shot.
2. 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.
3. 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?

1. Poor performance compared to competitors that know how to use data effectively
2. Inefficient bidding, where suppliers either underestimate or overestimate their bids based on f.ex misunderstood data
3. Struggling to anticipate new regulatory changes and market trends.
4. 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 procurement

Understanding 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 activity

Using platforms like Mercell with advanced analytics gives you comprehensive insights into the volume of procurement opportunities within your sector.

What are the main benefits?

1. 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.
2. 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.
3. 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.

What’s the overall outcome? 

1. Precise market targeting and effective risk management.
2. 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 insights

Understanding 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?

1. 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.
2. 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.
3. 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 documents

Mercell’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:

1. Spot patterns: Recognize frequently requested credentials, such as environmental certifications or specific turnover levels.
2. 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 opportunities

Mercell'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:

1. 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.
2. 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.

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.

Conclusion

Through 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 procurement

Explore 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.