Tendering platform for the private industry ( procurement services)

Tendering platform for the private industry ( procurement services)

Current Status Concept / Business Plan
Amount Invested RM 40,000.00
Funding Required RM600,001 to RM1,000,000
Description We have been in the medical devices industry for the past 7 years and we found one very common problem within the industry; Doctors are usually unhappy with the products they buy or with the after sales service they receive after the purchase itself.
This problem usually occurs because of the inability of Doctors to find themselves distributors who are properly trained, licensed, registered and managed leading to shady and unprofessional transactions. Having been in the industry ourselves, we found this to be a crisis that was becoming more and more prevalent with no real way to stop.

Along the way, when the usual sales to the private sector Doctors was going on, we came across a government tender that we participated in and found one striking difference, the government facility had a tender system to ensure they get the best deals, best prices, best guarantee of service after sales and once and for all securing the safest deal for themselves and all because they open up a proper tender which forces nothing but the best out of distributors and only really qualified distributors got to participate.

That got our founder thinking, why don’t we create a platform for all private clinics in Malaysia where they post their buying request, we open up the tender for them and suppliers can tender in with proper documentation and specifications to win the deal. That is when Tender-In.my was born.

As off now we do not have anything going as this is in the concept stage but we know the private GP market like no one else and we have proof and evidence that this will be a runaway success as the service will not be charged to the doctors, we will charge suppliers. We are basically going to let doctors get the best deals at the best prices for free and all they need to do is demand that all suppliers tender in via our platform.

Business Opportunity There are over 7000 private Clinics in Malaysia along with almost 400 private Hospitals and 300 small to medium range medical centers. One of the biggest problems all of the above facilities have in common is the fact that their purchasing practice is so weak they always end up with the worse products out there with small unprofessional companies selling it to them.
With Tender-In.my, we are basically providing an online procurement service to all of the above facilities where we become their procurement department handling purchasing with one small difference, we do it for free! We are only looking to earn revenues out of the suppliers and distributors.

When a facility wants to purchase something as small as a needle right up to an x-ray unit, they can post it up on our website after which we will open a tender for all our subscribing suppliers to participate in and we will facilitate the process right to the point where the end user awards the tender to someone.
This will forever change how the medical industry buys and sells things as only the most qualified and professional companies with the most legit and licensed products will be allowed to sell and the end users will slowly change their standards of buying as we provide them the space to demand for nothing but the best.
The whole private sector is our target market because of the nature of our service. We make sure they get quality deals for quality pricing and we do it all for free, we know we would use the platform if we were doctors. After we reach a certain height in the medical market, we will then move on to different industries as this platform can be used for any industry.

We will also move into providing outsourced procurement services to big corporate companies promising them to increase profitability by 10 to 15% due to high standards in procurement practices.

All of the expansion plans will be discussed in detail when we meet a potential investor.

Revenue / Business Model The model is simple. We have 5 ways that we are going to earn revenues out off:
1) Subscription fee for suppliers:
All suppliers will be charged RM 50.00 per month to subscribe and access our database of buying request posted by doctors and end users. There are about 6000 individual medical devices and pharma companies in Malaysia.

2) Tender document charges:
All suppliers would have to pay a minimum fee of RM 10.00 per tender document they want to buy and participate in. All tender documents will be available for review before they purchase it. Judging by the number of facilities and suppliers and our experience, at its peak there could be nothing less than 350 to 400 tenders opened a day.

3) Advertisement revenues:
Of course suppliers would be able to advertise their products on our platform. There will be an affordable charge of RM 250.00 per product for 7 days of advertising. There will be 30 slots available for advertising. If demand gets too high, we will open bidding for the slot, highest bidder gets the slot.

4) Product registration fees:
For every single product that suppliers want to use in our platform as a competitive product, they would first have to register it in the system with the necessary documents for our approval and this will cost them RM 35.00 per product. There are easily over 30,000 different products in the equipment category alone.

5) Commission out of every deal:
Since we charge such nominal fees everywhere else, we would charge suppliers a 1.0% commission out of every closed deal.

Management Team We are a group of 3 people well versed with the Medical Device industry in the private GP market and also the business atmosphere as a whole.
We have been running our own Medical Device company which we started from scratch to build it to a 15 man company and we turnover about RM 2.5 million a year currently.

The 3 of us have 3 different expertise: Management and strategies, Marketing and sales, Negotiations and networking.

We have built a vast network with a good number of years in our bags as experience.

We would wish to reveal more about ourselves when we meet potential investors.

Company Background We have an existing company which have been in the medical device industry but we do not have a company for Tender-In.my as this is at concept stage which we can execute with funding.
To know about our existing business which is profitable and which we also got funding from Capital.my, we will do so when we meet potential investors.
Funding Milestone We would need RM 500,000.00 funding and we are willing to come in with RM 200,000.00.
The suggested RM 700,000.00 will be used for the following:

1) Marketing and advertising : RM 133,000.00
2) Website building : RM 50,000.00
3) Office set up : RM 25,000.00
4) Marketing materials and add-ons : RM 25,000.00
5) Misc : RM 20,000.00
6) Running cost for a year with overheads : RM 400,000.00

TOTAL = RM 653,000.00 ( THE BALANCE WILL BE FOR BUFFER)

The above is just a summary. Will explain in detail to potential investors.

% Equity Allocation 60%
Expected ROI 2 years
Risks and Mitigation The only risk we could really identify would be the risk that suppliers might not subscribe into our service which means no one can sell to doctors, when we looked into this risk we found that when end users demand everyone to tender in and only than they will purchase, suppliers will have no choice but to use our service.
Another risk would be that the end users and doctors themselves will not look into the idea and take it seriously enough to use it. To mitigate this, first of all we will be giving them lots of freebies to lure them into the programe.

Secondly, we have a very good relationship with the Malaysian Medical Association (MMA) where we will be having mass marketing events and talks with their help as we are doing this to make sure they are getting the best deals at lowest prices and we already have their support.

Exit Strategies The exit strategy will be explained in detail when we meet potential investors but to put it simply :
1st year to 2nd year = no profits will be taken out

3rd year to 6th year = dividence payment which will ensure ROI and profit for investor

3rd year to 6th year = sinking fund will be set up to buy back shares from investor

Company Name Tender-in.my
Business Address damansara intan
Contact Person Thinesh Kumar
CAPITAL.MY