How to Get the Best Results from Running a Go-to-Market Exercise

A well-executed go-to-market (GTM) exercise can be a game-changer for businesses. It’s not just about running a process but running it strategically to deliver a high-value outcome. Whether you are managing tenders for products or services, conducting a Request for Proposal (RFP), or negotiating contracts, the success of your GTM exercise hinges on careful planning, effective execution, and robust follow-through.

This guide explores when it’s beneficial to head to market and outlines the critical steps your business can take to ensure the process delivers significant commercial value. With input from industry best practices, we’ll show why preparation and negotiation are pivotal for success.

When Should You Consider a Go-to-Market Exercise?

Knowing when to initiate a go-to-market exercise is as important as how you run it. Here are some scenarios where going to market can create significant value:

• Contracts Near Expiry: Reassessing the market allows you to benchmark costs and evaluate better service options.

• Supplier Underperformance: A poorly performing supplier can hinder your operations and should prompt you to explore alternatives.

• Cost-Saving Initiatives: GTM exercises help identify more cost-effective suppliers or secure better transaction terms.

• Market Evolution: Dramatically shifting conditions, such as technological innovations or new regulations, may render existing suppliers outdated.

• Strategic Procurement Initiatives: If your business seeks to consolidate vendors, expand the supplier base, or explore innovative solutions, RFPs and tenders provide the means to achieve those goals.

  
  

Steps to Maximise Results from a Go-to-Market Exercise

Running a procurement process is not a one-size-fits-all approach. It involves deliberate preparation, stakeholder involvement, strategic alignment, and effective management of suppliers. Here’s how you can drive success:

1. Define Your Business Objectives and Requirements

Begin by engaging with stakeholders across departments to understand business needs, pain points, and desired outcomes. This ensures the procurement process is guided by well-defined, outcome-based requirements. Misaligned objectives often lead to responses that require costly rework.

For example, clarify whether cost savings, service quality, or supplier innovation are your highest priorities. By doing so, your selection process focuses on the most critical metrics.

2. Set Clear and Transparent Evaluation Criteria

Establishing explicit evaluation criteria is crucial. Decide on weighted factors for price, service levels, innovation potential, diversity, or sustainability. Use a scoring matrix that provides objectivity when assessing supplier responses during tenders or RFPs.

Clearly articulate these criteria in tender documents. Transparency encourages supplier trust and ensures fair competition.

3. Create High-Quality Tender Documentation

Simplify the tender process wherever possible. Documentation should be structured, professional, and clear, using consistent templates. Provide supplemental tools, such as pricing schedules, so suppliers can submit comparable bids.

Poorly prepared documents can create supplier confusion, resulting in irrelevant or incomplete responses. By contrast, detailed and well-organised documents attract higher-quality bids.

4. Establish a Robust Commercial Baseline

Benchmark current pricing, terms, and service levels to build a strong commercial baseline. This will enable you to compare proposals against an objective standard and calculate the total cost of ownership (TCO).

This means looking beyond unit pricing to consider factors such as implementation costs, transition expenses, and operational impacts. Early identification of hidden costs will avoid unpleasant surprises.

5. Allocate Adequate Resources to the Process

Ensure your procurement team and evaluation panel are well-resourced. Provide appropriate training for those responsible for assessing tender proposals. Delays caused by a lack of personnel or disengagement from cross-functional teams can erode the value of your GTM exercise.

Consider forming a project team that includes representation from legal, finance, procurement, and relevant operational units. Collaboration increases alignment and produces better outcomes.

6. Uphold Probity and Integrity

Fair and ethical procurement processes build supplier trust and protect your business’s reputation. Uphold probity by managing conflicts of interest and ensuring equal treatment of suppliers. Full transparency and meticulous record-keeping are essential.

This is especially critical in regulated industries, where flawed procurement processes could lead to legal or financial liabilities.

7. Build in Space for Negotiation

Simply awarding a tender based on initial responses leaves value on the table. Incorporating a Best and Final Offer (BAFO) stage provides room to negotiate terms and pricing with shortlisted suppliers.

Accurate comparisons from well-designed tender processes enable effective negotiation that optimises commercial outcomes.

8. Use Draft Contracts to Align Expectations Early

Issue draft contracts and commercial terms with tender documents. This sets clear expectations and reduces friction when you enter negotiations. Encourage suppliers to flag potential challenges during the tender process, allowing these issues to be resolved early.

9. Be Open to Supplier Innovation

Allow suppliers to propose alternative solutions that encourage innovation and deliver unexpected savings or service improvements. For example, flexible delivery timelines or customised options may benefit both parties.

Forward-thinking suppliers can often reveal opportunities to create mutual value if they are given room to innovate.

10. Engage Expertise When Needed

For complex or high-value procurements, engaging external consultants can bring specialist knowledge and fresh insight. Experienced procurement advisors are adept at leading tenders and RFPs, assessing supplier capabilities, and driving more competitive negotiations.

Why Preparation is Key

The success of a GTM exercise is determined well before supplier bids begin to arrive. Failing to allocate time and resources to the following can result in missed opportunities and suboptimal outcomes:

• Research and benchmarking tools allow for informed decision-making.

• Well-prepared tender documentation ensures supplier clarity and quality responses.

• Commercial baselines set the stage for meaningful negotiations.

• Cross-department collaboration avoids misalignment and delays.

The common pitfall of "just running the process" without rigorous preparation often leads to diminished business value and frustrated stakeholders. Remember, process alone does not create success; process excellence does.

Strengthening Negotiation Outcomes

No matter how strong the initial proposals, leaving room to negotiate is critical. Pricing structures, partnership agreements, and service levels often have additional flexibility that wasn’t immediately offered in the first round of submissions. For example, suppliers are often willing to propose discounts for longer-term contracts or bulk orders during negotiations. This is why negotiation should be viewed as both a collaborative exercise and a competitive advantage in the GTM process.

Actionable Insights

Follow these best practices to optimise your go-to-market strategy:

• Always align procurement processes with long-term business goals.

• Ensure adequate training for all stakeholders to promote informed decision-making.

• Leverage evaluation criteria that extend beyond simple cost metrics. Consider service standards, sustainability, and supplier innovation.

• Engage external expertise for large, complex tenders requiring heightened precision.

A successful go-to-market exercise is not just about following the steps but executing with preparation, precision, and strategic oversight.

Planning Your Next Procurement Initiative?

If you’re ready to elevate your GTM processes, expert support could be the missing piece. Contact us today to learn how strategic partnerships can ensure your procurement initiatives drive measurable business value.