Early Market Engagement is an often-underutilised opportunity for buyers and suppliers to contribute to the specification process. As public bodies seek more innovative ways to deliver services, this period is the ideal time for suppliers and buyers to engage and understand possible approaches. 

In this article, we share the key steps buyers can adopt to make the most of this period. We also show how important it is for suppliers to engage with the process and highlight the key things buyers are looking for. 

What is Early Market Engagement? 

Also known as soft market testing, Early Market Engagement (EME) offers an opportunity for interaction between buyers and potential suppliers before the formal procurement process begins. This engagement allows suppliers to contribute to the specification, assess the viability of the opportunity, and prepare to meet demand. 

Key Benefits of Early Market Engagement: 

• Encourages Competition: Helps ensure a healthy number of suppliers are bidding. 

• Enhances Market Awareness: Provides suppliers with insights into upcoming opportunities. 

• Facilitates Open Discussion: Allows for transparent conversations about the challenges, initial concerns, and key issues related to the procurement.
• Improves Specifications: Enables refinement of specifications, pricing schedules, scoring criteria, and, where appropriate, the contract form, with a solution-focused approach.

There is a common misconception that discussing procurement needs directly with suppliers before launching the process is unethical. However, as long as buying organisations do not distort competition—by giving any supplier a competitive advantage—they are on solid ground. To ensure fairness: 

• Be Open and Transparent: Buyers should share information equally with all participating suppliers. Keep a record of discussions while respecting intellectual property. 

• Maintain Fairness: Ensure that all suppliers are treated equitably throughout the process. 

Public Sector Buyers: How to prepare 

It’s important to understand the overall market for the goods and services you are buying. Market intelligence can help you find the right suppliers to engage with, to understand how much leverage you have, and benchmark with other local authorities. 

• Budget calculation: Understand how you have come to your budget figure. How much do these goods/services typically cost to deliver? 

• Service differentiation: How do quality factors and SLAs impact price and delivery. Identify which of these factors are requirements and where there is potentially flexibility. 

• Identifying suppliers: Use data and intelligence to identify which suppliers to invite.  

• Benchmarking: Who are other local authorities buying from? How have the suppliers performed and are there opportunities for collaboration. 

“From sourcing strategies to risk management, data plays a critical role in informing procurement decisions.”
Peter Lawton, Procurement Lead, South Tyneside Council 

Public Sector Suppliers: How to prepare 

Understanding your potential client, their requirements and the wider market are key. Good market intelligence is useful. Its best not to rely on assumptions or past relationships. 

• Understanding requirements: Check how this procurement has been completed previously. Who were the previous suppliers, if any?  

• Problem solving: Put yourself in the mind of the buyer. What problem are they trying to solve? How can you help them? Have things changed in this market? 

• Competitive landscape: Understand the market, how others are delivering these goods and services and who is buying.  

• Differentiate your offering: When you understand the competitive landscape, how do you differentiate your offering? What are the key points you want to highlight?

• Flexibility: Be aware in advance of how different approaches/SLAs will impact delivery and price of the goods and services you provide. For example, a 2hr call out changing to a 4hr call out, may be acceptable to a buyer and offer greater scope for you. 

Public Sector Buyers: How to Engage with Suppliers: 

Methods of engagement can include one-on-one meetings, face-to-face events (if beneficial), or emailed questionnaires and surveys. The following recommendations will help maximise the outcomes.
 

• Manageable Numbers: Keep the number of suppliers manageable and ensure they represent a broad spectrum of the sector. 

• Value the Suppliers’ Time: Make sure the engagement is worthwhile for suppliers and that they gain valuable insights. Help them understand the journey you’ve gone through to get to this point. 

• Provide Detailed Information: The more detail you provide about your requirements, the easier it will be for suppliers to respond. Key details include: 

• • The objectives of the contract 
    
  • Location and duration of the contract 
  • Current costs or budget available (if not sensitive) 
  • Create a deadline for EME feedback 

Key Points to Remember: 

• Be Transparent: Share information fairly with all suppliers involved in the EME process. 

• Avoid Unnecessary Barriers: Ensure that your requirements do not unintentionally create obstacles, especially for SMEs. For example, is there the opportunity to offer this procurement in lots, especially where there’s an opportunity to gain local knowledge and expertise? 

• Respect Confidentiality: Ensure that your requirements do not infringe on supplier commercial confidentiality. 

• Act on Feedback: Demonstrate that you have listened to and responded to feedback. This not only builds confidence with suppliers but also improves future market engagement opportunities. 

Good Early Market Engagement ultimately helps buyers and suppliers to improve expertise and collaboration, which in turn bolsters service delivery and value within our communities. If you have any additional insight to share, please contact us.