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
Find out about the governance of State Purchase Contracts for goods and services and understand the engagement model used by the VGPB for non-SPC activities.
Creating a procurement business case – goods and services procurement guide
Find out how to create a procurement business case for goods and services procurement.
Understanding the supply chain – goods and services procurement guide
Learn how understanding the supply chain will help achieve optimal value for money for goods and services procurement.
Market analysis and review – goods and services procurement guide
Find out how to assess the ability of the market to supply your goods and services procurement requirements.
Aggregated purchasing – goods and services procurement guide
Find out how to establish and use common use arrangements for goods and services procurement.
Victorian government paper procurement guide
Find out the recommended standards for procuring paper.
Reviewed 15 October 2019