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KAJ Medical’s Strategic Journey in the Canadian Tenders

Picture of Ben Attal

Ben Attal

Co-Founder, KAJ Medical


We embarked on an ambitious journey to break into the competitive arena of government tenders in Canada, a domain where industry behemoths like McKesson and Cardinal Health have long held sway. This narrative is a deep dive into our strategic playbook, revealing how we, a nimble startup, leveraged trade financing and product expertise to not just compete, but succeed in securing two major tenders valued at over $400 Million Canadian dollars. Our approach was multifaceted, intertwining trade financing, innovative value-added services, technology and a forward-looking pricing strategy to navigate and ultimately succeed in the complex government procurement landscape.

The Challenge

Entering the government tendering fray presented us with a labyrinth of strict payment terms, intense logistical demands, and fierce competition from established players. The predicament of manufacturers, constrained by these payment terms and unable to apply to these tenders effectively, highlighted a gap in the market. It was here that we saw our opportunity. We decided to leverage trade financing and our other value added services as a strategic tool to alleviate these constraints, enabling us to propose hyper competitive bids.

Our Strategy:

Trade Financing as a Competitive Edge

We recognized early on that the financial strain on manufacturers due to delayed payments was a significant hurdle. By offering trade financing, we were able to offer immediate liquidity to our manufacturing partners. This not only helped us secure products at significantly reduced prices but also strengthened our bid for the tender, giving us a leg up in the competitive process.

Value-Added Services: A Key Differentiator

Navigating the tendering and registration process can be daunting. We transformed this challenge into an opportunity by offering these processes as part of our value proposition. Our technology platform was also highlighted in our proposal.  This move not only attracted a wider pool of suppliers but also cemented our reputation as a comprehensive solutions provider to the procurement agency, making us an attractive partner for both suppliers and the government.

Logistics and Distribution: Completing the Puzzle

By incorporating logistics and distribution into our suite of services, we ensured a seamless supply chain solution, from order to delivery. This holistic approach addressed the government’s needs as well as the challenges of manufacturers as this is not their primary domain of expertise.

Strategic Pricing Model

In collaboration with our partners, we crafted a multi-year pricing strategy. Our initial bids were incredibly competitive, based on very slim margins, but complemented by a strategic 15% annual price increase. This approach was designed to secure the contract with an appealing upfront offer while ensuring long-term profitability.

The Outcome

Our innovative strategy paid off. KAJ Medical not only secured its first major tender, valued at over 400 million Canadian dollars, but did so being awarded alongside giants, marking us as the only startup in the mix. The technological sophistication and the synergistic value propositions of our proposal were critical to our success, with trade financing playing a pivotal role in overcoming financial barriers.

Looking Ahead

This victory was more than a milestone; it was a door opener to further opportunities. Following our initial success, we’ve been invited by the Canadian government to bid on multiple additional tenders. By proving we can deliver high quality products on time, this initial tender gives us the opportunity to become a trusted supplier for the government and hospital, allowing us to be able to scale this portion of our business. Our journey throughout this process is a compelling case for the power of strategic planning, innovative financing, and value-added services in conquering the challenges of government procurement. KAJ Medical is not just a participant in this market; we are now a proven contender, ready for the next challenge.

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