Procurement strategy

1.

TulaIC construction procurement strategy
High
Volume Concentration
Product Specification Improvement
Sourcing
Best value Evalution
Business
Impact
VIP = 9 M
RUB
Cash = 2 M
RUB
Quality
Security
Civil
construction
25 M RUB
maximise value for
money; simplify/
minimise involvement;
Low
Bottleneck:
Mech
installation
6 M RUB
Routine:
El
installation
3 M RUB
ensure supply
security & quality;
maximise supply
performance;
close supplier
management
High
Supply Market
Complexity
When?
Buyer Bargaining Power
After
Before
Medium. Main tactic - bidding. Control of
Low. Unclear cost model, lump sum orders.
pricing by fixing clear cost model in contract. Main tactic - negotiation.
Supplier Bargaining Power
Medium. 7 contractors (Astoria, Sigurd,
Amikan, Euroservice, DVStroy, BCC, LiderSB).
Each contractor is qualified for a number of
spenpools. Unit prices in frame contracts.
Order process simplification.
Intensity of Rivalry
Medium. 1-2 preferred, 1-2 back up qualified Low. Usually 1 qualified contractor for each
contractors for each spendpool.
spendpool.
Potential Market Entrants
Technical group support. Specification
Product Substitutes
Oursourcing or insourcing
Safety
High. 4 contractors (Astoria, StryPromInvest,
SPA, TESK, BCC). Each contractor is qualified
for just one spenpool. No contracted unit
prices.
Sometimes unclear specification. Inactive
improvement. Sourcing of new contractors. sourcing.
Contractors step by step evaluation.
Contractor development (f.e. Astoria's scope
increase).
Oursourcing or insourcing