There’s a new phenomenon in town. One that’s already making its presence felt among the private sector’s guarding companies. In many respects this particular phenomenon is applying societal technology in security to its very limits. Step forward e-tendering. Or online tendering. Or e-bidding. In other words, purchasing online.

Whichever description you choose to adopt, what we’re talking about is a fundamentally different approach to security tendering. There’s no reams of paper involved, with what amounts to an auction for security services taking place over the Internet. And the basic premise is a simple one that, on the face of it, should appeal to client and security company – namely to achieve the best price for the security service with the minimum amount of hassle for both parties.

It’s not surprising that the major corporates are positively salivating at the prospect of shaving anything up to 40% from their costs as a result of tendering online. However, as this month’s feature ‘End of the Line’ (pp33-34) shows, there’s more to e-tendering than meets the eye.

For a start, it depersonalises the buying function. More than most, the security industry is about people interaction and personal contact, all of which is removed by an online auction. Not only that, security companies may be dealing with a procurement department where cost is the only factor. Added value and a quality service don’t enter the equation.

In addition, the software packages needed for online auctions can be complicated and difficult to understand. Training will be a prerequisite for all parties in the process, which takes time (and money) away from the business.

On the technology side, like any other IT-rich process an online auction is prone to glitches such as network failures. Glitches that can see security companies thrown out of the bidding process, which rather defeats the objective.

Ultimately, e-tendering can erode slim profit margins for contractors. If that happens on a widespread basis, the industry and its clients will suffer immeasurably. New technology is fine, but not when it eliminates Best Practice.

Securex – the industry’s foremost exhibition for end users – runs from 12-14 October at Earls Court 2. We’ve added The SMT Forum and a Careers Day this year, placing the security manager centre stage (further details are available in our Securex Supplement, distributed with this edition of Security Management Today). Make sure you’re there.

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SMT