Download the pull report HERE
In an effort to understand how today’s procurement practices are affecting our members in real terms and to guide meaningful action; from March 27 through April 4, 2025, the Saskatchewan Industrial and Mining Suppliers Association (SIMSA) conducted an anonymous member feedback survey using Survey Monkey.
The survey saw responses from 18.3% of SIMSA’s membership (once Associate and Reciprocal members are excluded).
The feedback we received serves as both a warning signal and a roadmap. By addressing these concerns, procurement stakeholders can foster a healthier, more efficient, and more sustainable industrial supply chain in Saskatchewan.
Key Findings
- Excessive Payment Terms
- The most pressing issue reported was the widespread imposition of extended payment terms—Net 60, 90, or even 150 days—primarily by larger clients.
- These terms were described as “unacceptable” and akin to turning suppliers into de facto lenders, placing significant pressure on cash flow and operational stability.
- Many businesses are responding by increasing rates or margins, reducing competitiveness or forcing them to decline work.
- The monthly costs to members are in the millions of dollars.
- Project Delays and Uncertainty
- Nearly all respondents reported project delays, citing scheduling conflicts, late financing approvals, supply chain bottlenecks, and labor shortages.
- These delays often result in holding costs, inability to retain skilled workers, and significant stress on profitability.
- RFP/RFQ Quality and Fairness
- Respondents frequently noted poorly structured RFPs/RFQs with unclear scopes, outdated or missing information, and unrealistic deadlines.
- There were strong calls for better communication, more time to prepare bids, and increased transparency around evaluation criteria.
- Misalignment Between Proposal Effort and Award Value
- Many felt the cost and time required to prepare proposals are disproportionate to the potential contract value, particularly for lower-value or routine work.
- This issue is compounded by redundant requirements and a lack of standardized formats.
Recommendations for Improvement
To address the issues raised by members, the following improvements are recommended:
- Improve Payment Practices: Adopt standard Net 30 terms and enable milestone or progress billing to ease supplier cash flow challenges.
- Strengthen Project Planning: Involve suppliers earlier in planning, provide flexible start windows, and align scheduling with permitting and financing timelines.
- Upgrade RFP/RFQ Processes: Use standardized templates, allow adequate bid periods, offer Q&A sessions, and provide post-submission feedback.
- Enhance Engagement & Communication: Increase pre-qualification transparency, maintain feedback loops, and facilitate more industry-supplier engagement.
- Align Proposal Effort with Project Scale: Simplify small or routine RFPs and reduce documentation redundancy.
- Build Supply Chain Resilience: Encourage long-term sourcing strategies and include resilience metrics in procurement evaluations.
- Modernize Tools & Platforms: Streamline digital submission systems and ensure they are user-friendly and consistent across clients.
About SIMSA
SIMSA’s 364 member companies all have a permanent physical office in Saskatchewan, have total sales of over $17-billion annually, and employ over 35,000 persons in the province. We are the core of Saskatchewan’s mining, energy, and industrial supply chain.
SIMSA “helps our members sell stuff” by bringing them face-to-face with procurement persons, providing educational items relevant to selling, and guides in long term needs such as labour. With this focus, SIMSA has seen steady growth since our inception in 2013 – including through COVID.
Download the pull report HERE
