Victorian Government Purchasing Board
Achieving Excellence in Government Procurement

The market analysis and review policy covers mandatory requirements for market analysis, aggregated purchasing and disposal of assets.

Market analysis

Market analysis and review is the systematic review of the characteristics, capacity and capability of the supply market in order to understand the extent to which the market meets the needs of the buying organisation.*

In-depth market analysis helps you to understand market dynamics which helps determine the best way to approach the market. Market analysis needs to happen before approaching the market and should include local businesses and small to medium enterprises.

Aggregated purchasing

Aggregated purchasing is a generic term whereby demand for identical or similar categories is grouped together in order 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, either across multiple organisations (state purchase contracts) or in one organisation (sole entity purchase contract).

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* Source: CIPS glossary by Paul Rogers at CIPs Glossary external site icon

Tools and Templates

Refer to market approach templates

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