RFP-Respond/Not Respond Costs to the Corporation/Vendors Maureen Acker, The Dow Chemical Company John Sculley, RIS Consult...
Maureen Acker The Dow Chemical Company
Working with Procurement Step 1:  Process Pre-work Step 2:  RFP Development Step 3:  RFP Launch Step 4:  Service Provider ...
Level of Engagement: Procurement Procurement Engagement Varies by Activity Step 1 Step 4 Step 5 Step 6 Step 7 Step 8 Step ...
RFP Process - Costs <ul><li>Average size team – 6 people </li></ul><ul><li>Average duration – 3-6 months </li></ul><ul><li...
RFP - Benefits <ul><li>Refresh program offerings </li></ul><ul><li>Reduce costs </li></ul><ul><li>Improve customer (intern...
Developing Strategic Partnerships <ul><li>Move from regular bidding process (i.e. every three years) to ongoing tracking <...
Developing a Strategic Partnership <ul><li>Convert information into knowledge </li></ul><ul><ul><li>Housing market worst i...
 
John B. Sculley RIS Consulting Group
A Consultant’s Perspective <ul><li>Our Place in the Relocation Industry:  Independence, Neutrality, Objectivity </li></ul>...
A Consultant’s Perspective <ul><li>The RFP Process :  What We Do   </li></ul><ul><ul><li>Lead/Facilitate/Support Client Te...
A Consultant’s Perspective <ul><li>The RFP Process : What We Experience </li></ul><ul><ul><li>The Good --  Professionalism...
Donald F. Smith Altair Global Relocation
Challenges Facing Bidders <ul><li>Lack of Regular Pre-bid Access </li></ul><ul><li>Limited Relocation Expertise in Procure...
Dealing With The Challenges <ul><li>Commit to Add Value on Every Call </li></ul><ul><li>Become a Trusted Industry Resource...
Information Required to  Assess Opportunity <ul><li>% Win/Loss When Supplier Has No Prior Relationship </li></ul><ul><li>%...
Costs Associated With Bid Process: Cash In the Door May 31, 2008 Implementation$40,000 1 st  Authorization Received  Janua...
<ul><li>Q & A </li></ul>
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RFP-Respond/Not Respond Costs to the Corporation/Vendors

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RFP-Respond/Not Respond Costs to the Corporation/Vendors

  1. 1. RFP-Respond/Not Respond Costs to the Corporation/Vendors Maureen Acker, The Dow Chemical Company John Sculley, RIS Consulting Group Don Smith, Altair Global Relocation “ Trust, But Verify” Quote from Ronald Reagan when dealing with the Russians and the US missile agreement in 1987
  2. 2. Maureen Acker The Dow Chemical Company
  3. 3. Working with Procurement Step 1: Process Pre-work Step 2: RFP Development Step 3: RFP Launch Step 4: Service Provider Evaluation Step 5: Service Provider Selection Step 6: Contact Development/Award Step 7: Transition/Implementation Step 8: Ongoing Service Provider Management Step 1 Step 4 Step 5 Step 6 Step 7 Step 8 Step 2 Step 3
  4. 4. Level of Engagement: Procurement Procurement Engagement Varies by Activity Step 1 Step 4 Step 5 Step 6 Step 7 Step 8 Step 2 Step 3
  5. 5. RFP Process - Costs <ul><li>Average size team – 6 people </li></ul><ul><li>Average duration – 3-6 months </li></ul><ul><li>Costs </li></ul><ul><ul><ul><ul><ul><li>- People - $20,000 - $30,000 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>- Travel for onsite visits - $3,000-$6000 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>- Switching costs - $5000-$20,000 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>- Consultant - $10,000-$50,000 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>- Total $38,000-$106,000 </li></ul></ul></ul></ul></ul>
  6. 6. RFP - Benefits <ul><li>Refresh program offerings </li></ul><ul><li>Reduce costs </li></ul><ul><li>Improve customer (internal) satisfaction </li></ul><ul><li>Enhance relationships </li></ul><ul><li>Solidify Strategy </li></ul>
  7. 7. Developing Strategic Partnerships <ul><li>Move from regular bidding process (i.e. every three years) to ongoing tracking </li></ul><ul><li>Understand client strategy and 5 year plan </li></ul><ul><li>Proactive in managing program </li></ul><ul><li>Assist client in understanding “total cost” and how you are managing </li></ul><ul><li>Benchmarking events integrated into contract </li></ul>
  8. 8. Developing a Strategic Partnership <ul><li>Convert information into knowledge </li></ul><ul><ul><li>Housing market worst in 20 years </li></ul></ul><ul><ul><li>Deregulation of HHG </li></ul></ul><ul><ul><li>Costs have increased 20% </li></ul></ul>
  9. 10. John B. Sculley RIS Consulting Group
  10. 11. A Consultant’s Perspective <ul><li>Our Place in the Relocation Industry: Independence, Neutrality, Objectivity </li></ul><ul><ul><li>Advisors to Employers: Needs & Solutions </li></ul></ul><ul><ul><ul><li>Relocation Assistance Policy Design </li></ul></ul></ul><ul><ul><ul><li>Administrative Processes & Service Model </li></ul></ul></ul><ul><ul><ul><li>Supplier Specifications & Selection </li></ul></ul></ul><ul><ul><ul><li>Program Performance Evaluation </li></ul></ul></ul><ul><ul><li>Research & Feedback for Suppliers </li></ul></ul><ul><ul><ul><li>Customer & Client Satisfaction Measurement </li></ul></ul></ul><ul><ul><ul><li>Performance & Perceptual Assessments </li></ul></ul></ul><ul><ul><ul><li>New Product Testing & Training </li></ul></ul></ul><ul><ul><li>Educational Resource to Industry Associations </li></ul></ul>
  11. 12. A Consultant’s Perspective <ul><li>The RFP Process : What We Do </li></ul><ul><ul><li>Lead/Facilitate/Support Client Team’s Process </li></ul></ul><ul><ul><ul><li>Past Program Results & RFP Objectives </li></ul></ul></ul><ul><ul><ul><li>Service Specifications & Decision Criteria </li></ul></ul></ul><ul><ul><ul><li>Supplier Screening & Evaluation </li></ul></ul></ul><ul><ul><ul><ul><li>RFI, Proposals & Presentations </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Reference Checks & Site Visits </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Selection Rationale & Documentation </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Negotiation & Implementation Advice </li></ul></ul></ul></ul><ul><ul><li>Equip Client to Make Informed Decisions! </li></ul></ul>
  12. 13. A Consultant’s Perspective <ul><li>The RFP Process : What We Experience </li></ul><ul><ul><li>The Good -- Professionalism, Integrity </li></ul></ul><ul><ul><ul><li>Concise needs-based RFP </li></ul></ul></ul><ul><ul><ul><li>Small field of pre-qualified suppliers </li></ul></ul></ul><ul><ul><ul><li>Qualitative & quantitative decision model </li></ul></ul></ul><ul><ul><li>The Bad -- Indecisive, Expedient </li></ul></ul><ul><ul><ul><li>Uncertain objectives and preferences </li></ul></ul></ul><ul><ul><ul><li>Irrelevant, excessive data collection </li></ul></ul></ul><ul><ul><li>The Ugly – One-sided, Uninformed </li></ul></ul><ul><ul><ul><li>Cattle call of bidders </li></ul></ul></ul><ul><ul><ul><li>Poor time management </li></ul></ul></ul><ul><ul><ul><li>Unrealistic, disrespectful expectations </li></ul></ul></ul><ul><ul><ul><li>Subjective decisions without feedback to bidders </li></ul></ul></ul><ul><li>Result : Suppliers’ Reluctance / Selectivity on RFP Responses </li></ul>
  13. 14. Donald F. Smith Altair Global Relocation
  14. 15. Challenges Facing Bidders <ul><li>Lack of Regular Pre-bid Access </li></ul><ul><li>Limited Relocation Expertise in Procurement </li></ul><ul><li>Less Time to Build Differentiation </li></ul><ul><li>Trend Towards On-Line Bid Process </li></ul>
  15. 16. Dealing With The Challenges <ul><li>Commit to Add Value on Every Call </li></ul><ul><li>Become a Trusted Industry Resource </li></ul><ul><li>Be Respectful of Time and Schedule </li></ul><ul><li>Deliver a World-Class Written Proposal </li></ul>
  16. 17. Information Required to Assess Opportunity <ul><li>% Win/Loss When Supplier Has No Prior Relationship </li></ul><ul><li>% Win/Loss When RFP is Domestic Only, or Domestic & Global </li></ul><ul><li>% Win/Loss When Global is Administered Centrally w/in US or Tri-regionally </li></ul><ul><li>If You Decline to Bid: </li></ul><ul><ul><li>Personal Call </li></ul></ul><ul><ul><li>Written Note </li></ul></ul>
  17. 18. Costs Associated With Bid Process: Cash In the Door May 31, 2008 Implementation$40,000 1 st Authorization Received January 1, 2008 Contract Negotiation $20,000 Cumulative Cost by Phase Site Visit $15,000 Presentation $13,800 RFP $6,300 RFI $2,300
  18. 19. <ul><li>Q & A </li></ul>

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