Do you know the difference between the different types of supply chain contracts?
In total, there are 6 types of supply chain contracts, with the three main contracts being; continuous, fast, and flexible. So, whilst you may be familiar with the supply services, are you familiar with the contracts?
In this blog, we look at the three main contract types when it comes to tendering for work.
What are supply chain services?
To put it simply, supply chain services, are the processes involved in getting a service or product to the consumer. Supply chain providers work with companies in delivering what is needed to meet the customer’s needs.
This can be broken down into the following:
- Raw material supply
- Manufacturing processes
- Packaging supply
- Facilitating warehouses
- Distribution services
- Customer service
- Reverse logistics (return services).
Tendering for supply chain contracts will fall under these categories. However, the types of contracts and the tendering process adapts to fit the needs of the buyer. There will also be circumstances brought about by economic realities that may need considering.
The 3 main types of supply chain contracts
There are three main types of supply chain models that buyers can follow. They decide this based on what they require for their business. These can adapt throughout, depending how the business operates and they can be long-term or short-term contracts. The three types are:
- Continuous
This style normally applies to buyers whose products or services have little to no variation. Therefore, they know exactly what their processes need to be, and contracts tend to be regular. Buyers tend to post contracts looking for better value for money and service.
- Fast
A fast supply chain will usually be linked to companies who are in need of a reactive and quick turnaround. Getting their products or services to their customers quickly to keep up with changes that could affect their business. Contracts in this field include distribution services, and this could be both national and international.
- Flexible
When it comes to flexible contracts, these are usually linked with businesses who operate seasonally. They will likely only require services when they are at their peak with business, (i.e., companies who sell Christmas products). They will plan ahead to get contracts in place, but they tend to be short-term contracts. Contracts could be for any of the services, depending on their needs.
Let’s summarise
Though you may be familiar with the services that supply chains deal with, knowing the types of contracts is essential. You need to be aware of the type of contract you are bidding on. But you also need to be aware of the buyer’s needs. Due to the nature of each type of contract, you need to ensure you can work to that demand.
Bidding for a continuous contract may be the safer option long term, but this is not always guaranteed. Buyers will post new contracts as they evolve. Therefore, you will need to re-bid if you want to keep that work.
If you are involved with a fast contract, you need to ensure you can meet the high demand quickly. But also, be prepared for drastic changes that occur at any time. Buyers could change their mind, or economic realities could affect you. For example, during the height of Covid-19, boarders were closed, and distribution services slowed. If your contract agreement falls into this, can you adapt easily to suit the shift in needs?
Flexible contracts are a lot slower paced. You can plan ahead, which can work in favour if anything was to change drastically. Contracts will tend to be seasonal, depending on the buyer’s peak trading time.
Need help searching for tenders?
You may be wondering where you can find new contracts for your business. Supply chain contracts can fall into a range of sectors. At Hudson Discover, we house 11 sector-specific tendering portals. One centralised and easy-to-navigate portal can help you save time, streamlining the process.
These consist of:
- Creative Tenders
- Healthcare Tenders
- Facilities Tenders
- Construction Tenders
- Technology Tenders
- Logistics Tenders
- Research Tenders
- Consultancy Tenders
- HR Tenders
- Finance Tenders
- Hospitality Tenders.
Once signed up, you’ll have access to your own dedicated Account Manager. They’ll be able to answer any questions you may have about public sector contracts. You’ll also get an email alert when new and relevant tenders are uploaded in your sector.
A subscription to one of our industry-specific portals will include:
- Unlimited portal access. You can browse your industry’s portal to your heart’s content. See all the opportunities that are available, intuitively categorised, and easily accessible.
- A daily email bulletin. When you sign up to a portal, you can choose the specific areas in which you’d like to tender. Then, a daily bulletin is created for you. It includes all the relevant opportunities that have been posted to the portal that day, straight to your inbox.
- A dedicated Account Manager. They’ll handle any questions or queries you may have about the portal.
- A free 20-minutes phone consultation with a Bid Writer. Our expert Bid Consultants will chat with you for 20-minutes about anything tender related.
What opportunities can I expect from a tender search on one of the above portals?
We host all kinds of tenders in both the public and private sectors. These are inclusive of, but aren’t limited to:
- Open tenders
- Restricted procedure tenders
- Competitive dialogues
- Negotiated tendering procedures
- Innovation partnerships
- Single supplier contracts
- Framework agreements
- Dynamic Purchasing Systems.
Now you know how to accurately perform a tender search, you may be wondering how to write a bid. Our bid writing division, Hudson Succeed is made up of expert bid writers. They are on hand to help you with every part of the tender process if you need the support.
Hudson Succeed
As Bid Management Consultants, with over 60 years of bid writing experience and an 87% success rate, we can help. Whether you’re completely new to tendering or aren’t seeing results – they can help.
There are four bid writing packages available:
Once you’ve found a tender you’d like to go for, send it over to us. One of our Bid Writers will write the tender response for you. They’ll provide a full Tender Writing breakdown and even submit it on your behalf.
Tender Mentor can give your tender response a once over before you submit. The Bid Writing Team will analyse your response, notifying you of any errors prior to submission.
A 4-week programme for those who have never tendered before. The programme will develop your branded corporate literature and case studies. Our team will advise you on what tendering opportunities you should go for and guide you through your tendering response.
The Tender Improvement package can help those who have tendered before but aren’t seeing results. Our Bid Writers will assess your previous responses and work with you to develop improved content.
Get in touch to find out how we can help your business grow.
Vocal
Our support doesn’t end there! Our creative content agency, Vocal, are also on hand to help.
The Vocal Team are not afraid to stand up and be heard. And we make sure our clients aren’t either! From small, micro businesses to large organisations, we are vocal about the things that make your business unique.
Our creative service is dedicated to growing your business through striking and thought-provoking content. Our team specialise in six areas, including:
If you’d like to know more about what we can do for your business, introduce yourself to the team!
Contact us today to find out more.