Should your organisation implement a Dynamic Purchasing System?

implementation a dynamic purchasing system

Our team is often asked by our clients if a Dynamic Purchasing System (DPS) is the right choice for their organisation. To help, we have listed the main features and benefits buyers should be aware of before they set up a DPS for their organisation.

 

Why should my organisation use a DPS?

Let’s first look at the benefits of using a Dynamic Purchasing System.

Public sector organisations that use a Dynamic Purchasing System offer suppliers flexibility. If your organisation normally uses a framework procurement model then you will know that suppliers cannot join a framework until it is reopened, which leaves buyers with a restricted choice of suppliers. With a Dynamic Purchasing System, suppliers can be added at any stage of its lifetime.

Moving to a DPS could stimulate the market that you are looking to as it will increase competition between suppliers. In turn, this could lead to cost savings for your organisation.

 

What projects should use a Dynamic Purchasing System?

A study by the Local Government Association highlights the key characteristics that might make an organisation consider setting up a Dynamic Purchasing System. The study found that the organisations most suitable for using a DPS are those that:

  • have a large volume of suppliers
  • have a large volume of transactions
  • have capacity issues
  • want to purchase bespoke services
  • want to work with local SMEs
  • have many internal ‘buyers”
  • have low barriers to entry for the supply market

The document also gives guidance on what your organisation should do before implementing a Dynamic Purchasing System, noting that any organisation considering a DPS should engage with other organisations that are already using one.

 

Delta’s DPS module

If you would like to find out more about Dynamic Purchasing Systems, we have many case studies on our website which give examples of the types of organisations using Delta’s DPS module.

DPS can help your organisation achieve many of the benefits mentioned above. Streamline the procurement process for your suppliers with our Dynamic Purchasing System module – request a demo with a member of our team today.

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