Doncaster Council

What are the benefits of electronic tendering?

The Supplier and Contract Management System (SCMS) was selected because of its ease of use, the fact that it was free to use for suppliers (i.e. there are no annual subscription or document download costs incurred), and that users do not have to keep updating software. Another major consideration was that the system had been proven over a number of years in a similar environment.

All that is required to use the system as a buyer or supplier is an email address and Internet access. Self-registration is simple and quick and access to the latest information is available 24 hours a day, 7 day a week.

In addition to providing improved communication with suppliers, the SCMS also provides a high level of transparency and accountability and makes available information relating to the Council's tendering activities and awarded contracts via the website. The SCMS also provides council officers with improved procurement management information on its tendering activities and allows officers to manage suppliers performance more effectively.

Through the increased use of an e-tendering system, a reduction in advertising, paper and overhead costs for suppliers and buyers (including postage and handling costs) can be expected. It is estimated that it costs £175 to photocopy, collate and post a 'typical' set of tender documents using the traditional tendering methods. This amount can be saved when the tender is totally managed electronically. It is similarly estimated that it costs a Supplier £30 to photocopy, collate and deliver a 'typical' tender response.

Furthermore, 'hard-copy' advertising costs can be halved by reducing the size of the advertisement. This represents approximately £22,000 - £25,000 annual savings based on current advertising costs. In the future, 'hard-copy' advertising (other than that required by EU) could be phased out, increasing the level of saving.

E-tendering can be beneficial in unlocking public sector tendering opportunities for SMEs and provides a more secure environment than the traditional hard copy process. The awarded contracts function allows SMEs to identify potential business leads and deal directly with larger businesses.