All go for Virtual Property Market's tendering system

VIRTUAL Property Market, the Glasgow-based e-procurement firm, has completed a trial of its online tendering system, backed by the housing and regeneration agency Communities Scotland.

The company is now targeting the online system at Scotland's 250-plus Housing Associations which could make significant time and cost savings on annual tendering deals for £400m of property and facilities management contracts.

Following the government's call to move all procurement-based activities online by 2005, Communities Scotland (formerly Scottish Homes) linked up with Employers in Voluntary Housing to study the implications of e-procurement on the housing market. Virtual Property Market (VPM) was appointed to conduct a live tender for Springburn & Possilpark Housing Association (SPHA).

Using VPM to carry out an SPHA heating contract tender, as opposed to traditional paper-based methods, allowed it to access a wider range of suppliers on a single site, said SPHA director Robert Tamburrini.

'The financial impact of taking our procurement process online, and moving away from the paper-led method, would be extremely significant when aggregated against all tenders SPHA undertakes on an annual basis,' he added.

John Costello, VPM's director, said: 'The marketplace is changing at pace because of e-commerce and the tools it brings to improve daily working practices. It's becoming a necessity rather than a luxury and supplier markets across the business spectrum are at last realising this and adopting e-business strategies to maintain competitive advantage and avoid being left behind.'

Founded in 2000, VPM's e-tendering system involves clients placing contracts to tender on its website and a range of supplier companies bidding online for the privilege of the work.

Darran Gardner Sunday Herald 17/03/02