Devise sales strategies to win procured business
Overview
This standard is about devising sales strategies to win procures business. If you are involved in winning existing or new customers’ business, you must know how organisations select their suppliers. You need to recognise the procurement processes that potential customers go through to select their suppliers and then devise a sales strategy that maximises your opportunity for winning any procured business in the future. This standard is for sales professionals who devise sales strategies.
Performance criteria
You must be able to:
1. identify potential customers’ supplier selection criteria
2. evaluate the impact that suppliers may have on potential customers’ procurement practices
3. establish the approach taken by potential customers to forecast future demand for their supply needs
4. determine how customers establish their information needs and how they access supplier information
5. establish how the supplier can influence the criteria the potential customers use
6. identify existing suppliers of a potential customer and carry out a competitor analysis to identify their strengths and weaknesses
7. discover how long existing contracts between competitors and the potential customers last and when they are available for renewal
8. ascertain potential customers’ practices for specifications, buying and tendering processes
9. identify the potential customers’ expectations in relation to the balance of quality, price and timescales
10. identify the range of assessments undertaken by potential customers’ organisations to measure supply capability and capacity
11. use information on supplier selection criteria to win long-term business from potential customers and to become their preferred supplier
Knowledge and Understanding
You need to know and understand:
1. the current legal and regulatory requirements impacting procurement practices
2. the variety of competitive practices relating to procurement
3. your organisation’s procedures relating to bidding and tendering
4. your organisation's sales objectives, targets and activity plans in relation to accounts
5. the supplier choice criteria of the customers and how these affect procurement practices
6. the concept of ‘preferred supplier' status
7. the variety of procurement practices used by a range of organisations
8. the variety of quality measures relating to procurement
9. the types of capability assessments potential customers undertake on their suppliers
10. how organisations may reduce supplier risk through detailed evaluation of suppliers
11. the types of supplier evaluation criteria, methods and procedures
12. how organisations develop product and service specifications for the purpose of procuring supplies
13. the variety of approaches to making procurement decisions
14. the importance of reliable delivery in the context of procurement
15. the types of technical and resource support provided by suppliers