One thing I have noticed in the last few months during the economic downturn has been the dramatic increase in the number of businesses requesting for (existing or potential) suppliers to re-pitch or re-tender for their business. More often than not a tender process is simply an opportunity for any businesses to lock in cheaper rates, better pricing and other potential financial discounts associated with any procurement process.
I have been writing tenders and responses to expressions of interest and preferred supplier agreements for many years and what used to be an enjoyable task and an opportunity to really demonstrate one's ability to service the client has now become a chore where one downloads a 64 page document containing 17 different password embedded spreadsheets where the submitter is restricted to character counts, drop-down menus of yes or no answers, and naturally a detailed multi-tiered pricing compliance grid.
What I find quite amusing is that the 64 page mega submission is now often being referred to as an "audit" with successful bidders ["those meeting the stringent criteria outlined in the documents"] only then being invited to formally tender for the business!
A colleague of mine recently coined the term for this process as pre-tending ... which we then jokingly took a step further and referred to simply as pretending ... as the real work only comes later.
Before simply launching into a major submission (which can take days and days to complete), perhaps you should consider some of the following points.
• Is the business being tendered for part of your core business?
• What is the margin that you are willing to accept for the business? Is it really worth your while?
• What is the prospective client's view of your business? Do you have an existing working relationship with them?
• Do you understand the client's motivation? What do they want from a supplier? Are they doing this as a benchmarking exercise only?
• How many other competitors are involved?
Then rank your answers in terms of whether:
(a) The prospective client's business is not part of your core business;
(b) The prospective client's business is part of your core business; or
(c) The prospective client's business is an essential part of your core business.
Now decide whether it's worth all the effort ... oh ... and happy tender writing!
Image courtesy of: lotyloty
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