How to write the perfect tender ~ Global Move Management
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Transcript of How to write the perfect tender ~ Global Move Management
GLOBAL MOVE MANAGEMENT.
HOW TO WRITE THE PERFECT TENDER.
There are two elements to ensuring a tender produces the
right results
There are two elements to ensuring a tender produces the
right results
1 Asking the right questions
There are two elements to ensuring a tender produces the
right results
1 Asking the right questions
2 Correctly interpreting the responses
WE WILL COVER…
WE WILL COVER…
What topics to include
WE WILL COVER…
How to ask the right questions
What topics to include
WE WILL COVER…
Necessary breadth and depth of how to cover each topic
How to ask the right questions
What topics to include
“Respondents to tenders will typically be limited in their responses to the parameters provided by the tender as there is little or no scope for
them to step outside this structure.
So the questions asked and information requested in the process will determine the
quality of information received.”
UniGroup Relocation Network “The Perfect Tender for Move Management Services” White paper
requested in the process will determine the
UniGroup Relocation Network
1. ASK QUESTIONS THAT LEAVE NO ROOM TO HIDE
Generic questions generate generic responses from which little meaning is gained
GENERAL GUIDELINES
2. WORD QUESTIONS TO PROVOKE A SUBSTANTIAL RESPONSE
Use secondary questioning to test and evidence the initial response
GENERAL GUIDELINES
3. AVOID ASKING QUESTIONS FOR THE SAKE OF IT
Avoid asking things just because they’ve been asked in previous tenders or are in a template.
Investigate the relevance for your current/future requirement.
GENERAL GUIDELINES
A note on scoring…. Decide on what are the most important things you’re
looking for.
Weight your questions and publish them in the tender request.
Respondents will be encouraged to provide the
appropriate level of information for the areas
that are of particular interest to you.
INFORMATION TO GIVE What to tell potential respondents
INFORMATION TO GIVE:
Background
Even though it might be obvious what you do it’s important to provide background info.
The better respondents understand the rationale behind the tender the more accurately they can address your specific needs
INFORMATION TO GIVE:
Historical Data Build up and share a detailed picture of potential service usage. This helps to obtain best value and protect yourself from hidden costs after signing a contract.
INFORMATION TO GIVE:
Historical Data Build up and share a detailed picture of potential service usage. This helps to obtain best value and protect yourself from hidden costs after signing a contract.
1 Traffic lanes
INFORMATION TO GIVE:
Historical Data Build up and share a detailed picture of potential service usage. This helps to obtain best value and protect yourself from hidden costs after signing a contract.
1 Traffic lanes
2 Allowances
Which traffic lanes are your employees moving along?
TRAFFIC LANES
Which traffic lanes are your employees moving along?
TRAFFIC LANES What is the volume of traffic?
Which traffic lanes are your employees moving along?
TRAFFIC LANES What is the volume of traffic?
What is the demographic?
EXAMPLE:
In 2014 we saw a total of 30 international moves. 90% between London and New York of which 40% were couples, 50% singles and the remaining 10% families
“ ”
ALLOWANCES
Detail allowances for your employees
ALLOWANCES
Detail allowances for your employees Include any tiers (e.g. through demographic, position or length of assignment)
ALLOWANCES
Detail allowances for your employees Include any tiers (e.g. through demographic, position or length of assignment) Include allowed additional expenses or exceptions (e.g. dismantling / vehicles / packing / pets)
EXAMPLE:
Single people have a volume allowance of 25m3, couples 30m3 and families 60m3. We allow full packing services and assignees may ship up to one vehicle
“ ”
“Even though history may not accurately reflect the future it is a potential indication, and of course it is valuable to provide any additional information on anything major that is changing in your organisation that could affect this area during the contract.”
INFORMATION TO GIVE:
Scope 1 Size of outsourcing and
supplier model
Do you want a company to carry out a number of moves in a certain region, are you looking for move management services? Do you want more than one supplier?
INFORMATION TO GIVE:
Scope 2 Relocation vs. Moving
Are you just looking for household goods moving services or do you want to include some additional relocation services?
Specialist companies exist for both individually as well as those that provide multiple services as a single source.
INFORMATION TO GIVE:
Scope 2 Relocation vs. Moving
Are you just looking for household goods moving services or do you want to include some additional relocation services?
Specialist companies exist for both individually as well as those that provide multiple services as a single source.
Click here to view a list of possible additional relocation services you might want to consider including
INFORMATION TO GIVE:
Scope 3 Geographical Area
Understanding your organisation structure will drive which outsourcing approach and processes work best.
Is global mobility centrally controlled or handled by local entities? Or regionally?
COMPANY QUESTIONS How to assess company characteristics
INFORMATION TO GATHER:
COMPANY QUESTIONS Areas of information to evaluate if a supplier is right for you
Experience
Network
Financial stability
Capacity
Technology
Sustainability
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COMPANY CHARACHTERISTICS
Experience What experience does a supplier have in providing the services you’re looking for, for similar organisations?
Follow up with secondary questions to gain evidence:
Case studies
References
AVOID MISLEADING OR ‘SALES’ ANSWERS:
Q: Do you have experience with managing similar customers? A: Yes
AVOID MISLEADING OR ‘SALES’ ANSWERS:
Q: Do you have experience with managing similar customers? A: Yes
Q: Illustrate your experience working with similar contracts. Include details on size and scope of contract
COMPANY CHARACHTERISTICS
Networks All relocation providers operate a network of some shape or form to service global requirements.
COMPANY CHARACHTERISTICS
Networks Find out about the nature of the network, how it is structured and operated to understand to what extent the supplier will be able to ensure quality and service delivery. Look for suppliers with a geographical footprint that compares well to yours.
Find out about the nature of the network, how it is structured and operated to understand to what extent the supplier will be
geographical footprint that
AVOID MISLEADING OR ‘SALES’ ANSWERS:
Q: Describe your global network A: We have a network of dedicated and certified worldwide partners
AVOID MISLEADING OR ‘SALES’ ANSWERS:
Q: Describe your global network A: We have a network of dedicated and certified worldwide partners
Q1: How are agents selected? Is there
freedom to select the best-in-class / our preferred suppliers in any region?
Q2: Who supervises and manages the network?
Q3: What procedures are in place to ensure consistent quality and service delivery?
COMPANY CHARACHTERISTICS
Financial Stability Many tenders just ask for the last 3 years financial accounts. This could be misleading because it: Is only historic information
May only address financials of holding corporation and not signing entity
Can be up to 18 months out of date
COMPANY CHARACHTERISTICS
Financial Stability Many tenders just ask for the last 3 years financial accounts. This could be misleading because it: Is only historic information
May only address financials of holding corporation and not signing entity
Can be up to 18 months out of date
Ask for more detailed information about ratios and guarantees based on information no more than 3 months old.
COMPANY CHARACHTERISTICS
Capacity Relate capacity questions to the size of the contract.
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COMPANY CHARACHTERISTICS
Capacity Relate capacity questions to the size of the contract.
Ask about the process for out of the ordinary situations i.e. short notice moves
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COMPANY CHARACHTERISTICS
Capacity Relate capacity questions to the size of the contract.
Ask about the process for out of the ordinary situations i.e. short notice moves
Find out how suppliers address peak season demands
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COMPANY CHARACHTERISTICS
Technology
How are systems integrated within the bidders organisation? Are they used worldwide?
What technology exists to support the assignee?
What technology exists to support your offices?
Is data real time or is there a delay?
COMPANY CHARACHTERISTICS
How are systems integrated within the bidders
As well as finding out what move management systems are utlised also obtain information regarding:
Screenshots or better still a live demo as part of the tender process can help evaluate areas like move authorisations, inventories, tracking and tracing, invoicing and reporting
COMPANY CHARACHTERISTICS
Sustainability Understanding a company’s approach to sustainability and corporate responsibility can help you identify if your organisations are a good cultural fit and ensure you are meeting your own sustainability goals..
COMPANY CHARACHTERISTICS
Sustainability What is the company’s approach to supporting and developing it’s employees and ensuring their wellbeing?
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COMPANY CHARACHTERISTICS
Sustainability What is the company’s approach to supporting and developing it’s employees and ensuring their wellbeing?
What is their approach to reducing impact on the environment?
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COMPANY CHARACHTERISTICS
Sustainability What is the company’s approach to supporting and developing it’s employees and ensuring their wellbeing?
What is their approach to reducing impact on the environment?
How do they support the community?
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COMPANY CHARACHTERISTICS
Sustainability What is the company’s approach to supporting and developing it’s employees and ensuring their wellbeing?
What is their approach to reducing impact on the environment?
How do they support the community?
How does their strategy extend to their own suppliers or partners?
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COMPANY CHARACHTERISTICS
Sustainability What is the company’s approach to supporting and developing it’s employees and ensuring their wellbeing?
What is their approach to reducing impact on the environment?
How do they support the community?
How does their strategy extend to their own suppliers or partners?
How else are they considering the future?
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Do they practice what they preach? Look for substantiation of any claims with regard to sustainability.
Case studies or examples Copies of policies or procedures Certifications Audit results/statistics
PROCESS QUESTIONS How to assess a respondents processes
INFORMATION TO GATHER:
PROCESS QUESTIONS Areas of information to evaluate if a supplier is right for you
Operational Management
Account Management
Service Level Agreements
Reporting and Quality
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PROCESS CHARACHTERISTICS
Operational Management Ask in detail about the service delivery model. What is the process of a relocation? Who is in communication and control at each stage? Avoid questions that can be answered with just a simple flow chart response.
AVOID MISLEADING OR ‘SALES’ ANSWERS:
Q: Describe your operational process from initiation to invoicing A: We have a single point of contact responsible from start to finish with full control over every aspect of the move
AVOID MISLEADING OR ‘SALES’ ANSWERS:
Q: Describe your operational process from initiation to invoicing A: We have a single point of contact responsible from start to finish with full control over every aspect of the move
Q1: Who will be in control at each stage
and why? Q2: Who is initiating and monitoring
activity? Q3: What communication channels are
open to the assignee? Q4: Who has overall responsibility?
PROCESS CHARACHTERISTICS
Account Management How will they accommodate your
structure?
How do multiple coordination centers work?
What about implementation?
What about complaints/claims handling?
Address your concerns
If there is something you have had problems with in the past, or that is particularly important to you from experience or research, use your questions to find out how the supplier would handle a similar situation or aspect of your account.
PROCESS CHARACHTERISTICS
Service Level Agreements Define the levels of performance you require.
Select KPI’s that are important to you
Ask how the supplier ensures these are achieved
Get evidence of performance with existing contracts
Specify how you will monitor KPI’s and the implications if not met.
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A good SLA can reduce direct, indirect and hidden costs of an assignment
A good SLA can reduce direct, indirect and hidden costs of an assignment
Examples: Frequently delayed shipments mean increased temporary accommodation costs
High % of insurance claims create opportunity cost of lost productivity & employee satisfaction
Suggested KPI’s
As with all KPI’s those used in your SLA must be SMART*
* Specific, measurable, acceptable, realistic, time bound
• Time limits for initial contact • Time limits for proposals
(budget and schedule) • Accuracy of quotes • Maximum transit times • Assignee satisfaction • Proportion / severity of
complaints • Insurance claim value/ratio
PROCESS CHARACHTERISTICS
Reporting & Information What information is important to you and why?
Specify what reports you would like to have and how frequently
Ask about suggested or existing reports the supplier would recommend/ provide as standard
Find out how you obtain reports. Can you run reports yourself on demand?
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Ask to see sample reports so you can evaluate if the information and format suits you. If not, can they be customised?
PROCESS CHARACHTERISTICS
Quality
Quality standards like ISO and FIDI FAIM are a great place to start as certification is a good independent indication of overall approach to quality, but make sure to use secondary questions to dig deeper.
AVOID MISLEADING OR ‘SALES’ ANSWERS:
Q: Describe your quality management system A: We are ISO and FAIM certified.
AVOID MISLEADING OR ‘SALES’ ANSWERS:
Q: Describe your quality management system A: We are ISO and FAIM certified.
Q1: Does the certification apply to the whole organisation or just parts?
Q2: How are quality control ideals implemented throughout the company?
Q3: To what extent is the quality of
subcontractors or partners controlled?
COST QUESTIONS How to evaluate pricing and other costs
INFORMATION TO GATHER:
COST QUESTIONS Areas of information to evaluate if a supplier is right for you
Pricing (Rates)
Cost Savings
Invoicing
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Ask for costs in a way that enables you to make like for like
comparisons.
Give exact criteria and instructions on how to base costs to reduce risk of
additional costs.
COST CHARACHTERISTICS
Rate Requests Comprehensive request of rates for different traffic lanes Carefully evaluate your traffic lanes and required services and request rates for the majority.
Include additional costs e.g. storage charges, specialist handling equipment or bolt on services which should be itemised on a quote.
Even if you don’t approve them every time you’ll need to understand the bigger picture.
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Don’t leave room for suppliers to quote an attractive rate on a small number of lanes / services to book the contract and make up losses on those you didn’t specify in your request.
Avoid the Trojan Horse….
Don’t forget insurance….
Insurance rates can have a considerable impact on the overall cost of a move. Many suppliers use insurance revenue to subsidise the cost of a move.
Difference in premium %
Cost increase %
0.2% 3.2%
0.4% 6.5%
0.6% 9.7%
1% 16.2%
Don’t forget insurance….
Insurance rates can have a considerable impact on the overall cost of a move. Many suppliers use insurance revenue to subsidise the cost of a move.
Difference in premium %
Cost increase %
0.2% 3.2%
0.4% 6.5%
0.6% 9.7%
1% 16.2%
An increase in premium of just 1% can mean 16.2% higher overall
costs!
COST CHARACHTERISTICS
Rate Requests Levels of Transparency Define the level of transparency you want in breaking down costs, e.g. management fees, freight fees, shipping/air freight costs.
Balance the need for sufficient information with what is practical for suppliers to provide remembering all may determine costs in different ways. For example, stipulating labour costs of packing based on hourly rates may be an onerous task for a bidder.
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These rates are variable, so if you demand they are fixed for a long period of time the supplier may charge a higher rate to cover the risk of any increases in these costs.
To avoid this shipping and airfreight costs should be quoted separately and reviewed every 6-12 months.
MANAGEMENT OF FREIGHT COSTS
COST CHARACHTERISTICS
Rate Requests Service Levels Provide info on what service levels rates should be based on. E.g. maximum transit times, notice period.
Make sure to ask details about what’s included/excluded in any fixed prices.
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COST CHARACHTERISTICS
Rate Requests Service Levels Provide info on what service levels rates should be based on. E.g. maximum transit times, notice period.
Make sure to ask details about what’s included/excluded in any fixed prices.
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Click here to request a list of Common inclusions and exclusions
for international moving rates
Currency rates fluctuate so if a supplier fixes rates in one currency a premium may be added to take account of the risk. The longer you request rates are fixed for the more the risk and the higher the premium may be. To limit this provide a mechanism within the contract to periodically apply the actual currency level at a particular time OR ask for rates in multiple currencies.
A note on currency rates…
£
COST CHARACHTERISTICS:
Writing your rate request Usually comprises a grid showing change in rate with consignment size. Each mode of transport (air, sea or road) may have a different grid and set of units – typically:
Road ~ volume/distance
Air ~ gross size/weight
Sea ~ lift van/container size or loose load volume
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Drawing up a rates grid It’s best to consult with experts at supplier level when it comes to building your rates grid.
Reduces risk of misunderstandings or future hidden costs
Helps you build a structure that returns best value for your company requirements
Makes sure the format is easy to compare responses
Drawing up a rates grid It’s best to consult with experts at supplier level when it comes to building your rates grid.
Reduces risk of misunderstandings or future hidden costs
Helps you build a structure that returns best value for your company requirements
Makes sure the format is easy to compare responses
Click to book a FREE CONSULTATION with a Bournes Relocation Expert to start designing your ‘perfect’ tender
COST CHARACHTERISTICS:
Cost Savings
What cost savings will be implemented by the supplier over the term of the contract?
Request case studies or typical cost savings achieved with other clients to enable evaluation of the likelihood and extent of savings being delivered.
COST CHARACHTERISTICS:
Invoicing
Control and invoicing affects the ‘real costs’ of working with a supplier. Ask questions about ability to invoice accurately, on time and with the appropriate supporting files in line with your own procedures.
Specify when invoices should be raised and include accuracy as a Key performance indicator.
Click to book a
FREE CONSULTATION
with a Bournes Relocation Expert
Ready to start writing your ‘Perfect Tender’?
Make it easier to evaluate and compare responses
Maximise value from your supplier partnerships
Improve the satisfaction of your assignees
Reduce the time you spend ‘managing’ moving
Bought to you by
GLOBAL MOVE MANAGEMENT.
HOW TO WRITE THE PERFECT TENDER.
bournesmoves.com/relocation