How can I communicate with my vendors?

There are many ways that local government organizations choose to communicate with their vendors about new solicitation opportunities. Some public organizations choose to employ multiple methods of communication to spread the word about their open business opportunities. Here is a look at the types of communication typically used, including direct communication methods (email), indirect or 3^rd party communication, and in-person events.

Specific bid communication

Direct communication about a bid is arguably the most obvious and effective way for purchasing professionals to connect with their vendors. This form of communication involves any contact that involves a purchasing professional reaching out to a specific vendor, including phone calls, emails, fax (yes… surprisingly this still exists!) or in person discussions. These types of communication are typically the result of a specific upcoming or already published solicitation, and the purchasing professional is requesting a bid or quote. Purchasing professionals typically do this type of outreach with known vendors around very specific solicitations to ensure: the vendor is aware of the solicitation, that they are getting the outreach needed to fulfill requirements, or if they want more vendor outreach with local vendors in accordance with local preference regulations. These types of communication are the most effective, because of the manner in which they take place. Unlike many forms of indirect communication, direct communication allows purchasing professionals to control who is informed. It also allows purchasing professionals to know that the information has reached these vendors. While they can’t ensure that an email or fax was viewed, they know that the information was at the very least sent to that specific vendor.

Communication through a 3^rd party

Local organizations often rely on communication with their vendors through some form of 3^rd party as well. Ads in the local newspaper are one form of a 3^rd party communication that agencies regularly utilize. When an organization has a solicitation ready to go out to bid, they will typically place an ad in their local newspaper with the information. The ad may have bid specifications, and often includes the address where specifications can be picked up, and/or the information for the point of contact. Although communication through newspaper ads is declining in popularity (due in large part to the decline of the newspaper industry in general), it is still sometimes necessary based on local purchasing policy.

With the decline in popularity of newspaper ads, comes the increased attention to internet information. Many local organizations, even in smaller municipalities with limited IT budgets, are beginning to create their own websites. This is allowing purchasing professionals to store and advertise their solicitation information on the web. Although the local organization may be doing the legwork for posting their information on their own website, they still aren’t necessarily communicating directly with their vendors, thereby still making this a type of 3^rd party communication. 

In addition to purchasing professionals using their own website, an increase in online usage has led to the creation of e-procurement solutions over the past two decades. These e-procurement solutions, such as BidNet Direct, allow agencies to self-publish their solicitations to an online repository containing bids from multiple local government organizations. These online platforms allow vendors from across the country to access any public solicitation, expanding the vendor outreach that was previously available to the organization. In theory, this eliminates the need for organizations to reach out to specific vendors regarding bid opportunities, although most still choose to at least reach out to their preferred vendors.

Vendor In-Person Meetings

In-person interactions with vendors regarding a specific bid opportunity, or the purchasing department in general, are commonplace amongst public purchasing professionals. Pre-bid meetings are one form of vendor meetings that revolve around a specific solicitation. Oftentimes when an organization is bidding out a very specific type of service, such as construction projects or professional services, they will hold a pre-bid meeting. These meetings require all vendors interested in submitting a bid to show up at a predetermined time and place to receive information regarding the solicitation. However, as beneficial as these meetings can be by providing added information or context regarding the good or service required, they can often limit the vendor pool to only those that are local.  Because of this, many government purchasing departments are hosting pre-bid meetings and online question and answer periods virtually.   

Trade shows and reverse trade shows offer a unique way for purchasing professionals to interact with vendors. These events typically take place only a few times a year, and consist of vendors or purchasing professionals having a booth for the other to visit. This is a very informal type of communication between vendor and public organization, but can still prove to be very useful. At a vendor trade show, vendors will be the ones with booths, with purchasing professionals from local organizations attending the event. This gives vendors the opportunity to market their services for any future upcoming bid opportunities the organization may have.

Reverse trade shows work in essentially the same way, only with purchasing professionals hosting vendors. By doing so, these purchasing professionals can convey general information to the vendors regarding their purchasing policies, including where to find open bids and upcoming large projects. By providing vendors with a better understanding of their purchasing policies, vendors can better tailor their bid submissions, hopefully giving them a greater chance of earning the organization’s business.

A city or county will also often host informative sessions for their local vendors as well. These sessions are centered on the organizations purchasing process, and the organizations use it as a way to drive interest among local vendors in responding to solicitations.

Trade shows, informational sessions hosted by an agency, and other in person meetings allow for a different type of interaction than others. Typically, interactions between purchasing professionals and vendors are extremely formal, such as the pre-bid meetings, and take place only when there is a need for a service that can be provided. Because of the brevity of the interactions at these events, they are usually much less formal.

Which form should my organization use?

While individual public organizations and purchasing professionals will have their own preference for their style of vendor communication, each is effective in its own way. Many e-procurement solutions exist that can ease aspects of bid communication and in-person meetings, and provide platforms to utilize for 3^rd party communication. BidNet Direct provides participating organizations the tools needed to utilize all forms of communication. For instance, BidNet Direct provides organizations with a list of vendors that match the NIGP codes for their specific solicitation and automatically sends an email to those matching vendors. The platform also provides purchasing professionals with a ‘Courtesy Email” feature, allowing them to email vendors whom are not yet registered on the platform in order to inform them of their latest solicitations.

Purchasing professionals can also use the platform to host question and answer sessions, and announce any required pre-bid meetings. And although the interaction with vendors and government organizations via trade shows does not occur on their platform, BidNet Direct can, upon request, send out notifications via email for our participating organizations about upcoming reverse trade shows and other events through regional NIGP chapters. Using all these forms of communication ensures that purchasing professionals are connecting with their vendors on every level, providing everyone with a better experience.

Find out how BidNet Direct can help your government organization today!