It is no secret that the procurement process is a difficult and complex system to navigate. However, dynamic purchasing systems, or DPS, are revolutionising the procurement market. Designed to make life easier for buyers and suppliers alike, DPS streamlines the process of buying goods and services.
But what are they? Who needs them? And how do they work?
In this article, we will answer these questions and more. We’ll discuss who DPS is designed for and outline the benefits of using a dynamic purchasing system. Keep reading to find out if DPS is right for you!
What Are Dynamic Purchasing Systems?
In the United Kingdom, a dynamic purchasing system (DPS) is a type of procurement process that is used to win contracts for goods or services.
DPS contracts are typically awarded for a period of time, after which they are open to new suppliers. This allows for a greater degree of competition and flexibility within the procurement process.
DPS contracts are particularly well-suited to sectors where there is a high degree of innovation, such as in the technology sector.
One of the key benefits of DPS contracts is that they can help to promote competition and encourage innovation among suppliers. This can lead to better value for money for procuring authorities and improved outcomes for the projects that they are delivering.
Who Can Benefit from Dynamic Purchasing Systems
Dynamic purchasing systems are a relatively new procurement route which enables customers to award contracts to any economic operator that meets the minimum quality requirements laid out in the DPS notice and specification.
The concept behind DPS is to allow for multiple contracts to be awarded from a single call-off procedure, providing that the chosen suppliers can demonstrate they meet the quality standards required.
This gives organisations greater flexibility when planning their future purchases, as well as providing opportunities for small and medium-sized enterprises (SMEs) to win work.
In addition, a number of local authorities and other public bodies also started using this tool to procure goods and services. As such, there is a growing need for suppliers who are able to support customers with the development and implementation of these systems.
Dynamic purchasing systems are an important new development in the world of procurement, and one which is likely to become increasingly popular in the coming years.
Common Issues with the Procurement Process
In the United Kingdom, procurement is the process by which goods and services are acquired for public use. While the process is designed to be efficient and cost-effective, there are several common issues that can arise.
For example, late delivery of goods and services is a frequent problem, as is poor quality control.
In addition, the procurement process can be complicated and time-consuming, making it difficult for small businesses to compete. As a result, these issues can lead to increased costs and delays in the delivery of vital goods and services.
Limited Supplier Choice
Buyers may be limited to suppliers who are registered on the DPS. This can reduce competition and drive up prices.
Lack of Flexibility
The rigid structure of a DPS can make it difficult for buyers to adapt their requirements to changing circumstances. This further delays the procurement process.
Set-Up Costs
There may be significant set-up costs associated with setting up and maintaining a DPS. It could deter small or medium-sized businesses from participating.
How Does DPS Help with Procurement and Mitigate Common Issues
By using a DPS, buyers can reduce the time and cost associated with traditional procurement processes, as well as increase competition and access to innovative products and services.
In the UK, DPSs have been used to procure everything from office supplies to construction services. There are several benefits associated with using a DPS, including:
Reduced Time and Cost
By using a DPS, buyers can save time and money by avoiding the need to conduct a new procurement process for each individual contract. Even though the initial setup cost is high, most businesses can mitigate these costs throughout the process.
Increased Competition
While the suppliers are limited, it does free up opportunities for more than just one company. As a result, a DPS gives buyers access to a larger pool of potential suppliers, which can lead to increased competition and lower prices. While the suppliers
Access to Innovative Products and Services
A DPS gives buyers early access to new and innovative products and services, as well as the ability to quickly respond to changing market needs. DPS’s main advantage is that the quality will continue to improve as more suppliers compete for the same contract.
DPS with Delta eSourcing
At Delta eSourcing, we understand the challenges associated with using DPSs in the UK procurement market.
We have a team of experienced professionals who can help you navigate the process and ensure that your DPS is fit for purpose. We can also support you with the development and implementation of your DPS, as well as provide ongoing maintenance and support.
Start Streamlining Your Procurement Solutions Today
If you’re looking to utilise dynamic purchasing systems in your future purchasing, please get in touch to see how we can help.
We offer a free demo so that you can explore the features of our software and see how it can benefit your organisation. We also have a help centre that contains a wealth of resources to help you get started, including user guides, videos, and FAQs.
