Market analysis and review policy
This policy covers requirements for market analysis, aggregated purchasing and disposal of assets.
Market analysis and review is the systematic review of the characteristics, capacity capability of the supply market to understand the extent to which the market meets the needs of the buying organisation.
An in-depth market analysis assists in understanding the market dynamics, which helps determine the best way to approach the market. It should include local businesses and small to medium enterprises.
Aggregated purchasing is a generic term whereby demand for identical or similar categories is grouped together to leverage benefits from greater economies of scale when negotiating with potential suppliers.
Aggregated purchasing can offer better value for money, while also reducing duplication of process and driving continual improvement over the life of the contract.
There are mandatory requirements for setting up and managing supplier registers and common purchasing arrangements:
- across multiple organisations (state purchase contracts)
- one organisation (sole entity purchase contract)
Disposal of assets
Disposal of assets should be considered when the asset is identified as obsolete, beyond repair or surplus to requirements.
Guides for market analysis and review policy
Governance of State Purchase Contracts and the VGPB’s engagement model – goods and services procurement guide
Reviewed 17 February 2020