About
Whether your organisation is seeking better prices or services from its suppliers, or contracting out and outsourcing areas of activity, effective tender/RFP preparation is a way of assessing what a competitive marketplace can offer. Effective tendering techniques are now being employed by organisations as a way of ensuring that they are contracting with the suppliers that have the best prices and levels of service.
Key Learning Outcomes
• Reduce the effort, time and costs involved in preparing and evaluating supplier proposals
• Understand how to write and advertise a tender/RFP
• Learn how to prepare tenders/RFPs that solicit better and more competitive bids
• Analyse best practices for filtering and rejecting proposals
• Develop an elimination and ranking criteria within your organisation, for suppliers
• Grasp techniques for actively managing and measuring supplier performance
• Incorporate effective proposal evaluation models and criteria
• Define performance terms to guarantee effective delivery and minimise costs
• Improve the services provided by your suppliers through effective negotiation skills
Course methodology
The emphasis is on a practical, easy-to-follow process rather than a rigorous theoretical dissertation. This two-day course will use case study examples and group exercises as well as tutorial sessions. All attendees will be provided with a workbook and a certificate of attendance.
Who should attend?
• Procurement Professionals
• Purchasing Professionals
• Supply Chain Managers
• Operations Managers
• Project Managers
• Logistics Managers
• Production Managers
• Contract Managers
• Finance Managers
• Internal/External Auditors
• Heads of Department
• Facilities Managers
Outline
Day one
Introduction to procurement
• The big picture of procurement
• Total Cost of Ownership (TCO)
• Best Practice
Developing your sourcing strategy
• Examining the tender/RFP process as a concept and its significance and place in the procurement and project management process
• Defining your objectives, scope and boundaries
• Examining the relationship framework
• Can this process itself be outsourced?
• How to prepare budgets and identify purchasing authorities
• Planning and staffing requirements for procurement projects
• How to reduce effort, time and costs
• Analysis of the reasons why tenders/ RFPs can fail to deliver
Understanding the professional tender/RFP process
• Exploring the various stages of the purchasing process:
- Quotations
- RFPs
- Expressions of interest
- Requests for information
• How to use the RFI conference and/or briefings
• RFP closure process
• How to assign the right staff and professionals
• Techniques for goods/services analysis
Writing and advertising the tender/RFP
• Writing the proposal and specifications to attract high quality bids
• How prescriptive should your specifications be?
• The role of performance based specifications
• How to apply TCO
• Ensuring the design of your contract captures all of your objectives and expectations
• Tailoring your contract to guarantee the terms and outcomes meet your needs
• Incorporating performance measures into your contract
• The pre-qualification process - when to use it
Examining the sign-off and approval process
• Analysis of the role of the sponsor and user group in the tender/RFP process
• How to develop your business case before the approval meeting
• What techniques are available for streamlining the approval process?
• Successful techniques for how to plan and staff the evaluation team
• How to be objective and fair when assessing tenders/RFPs
Day Two
Developing effective evaluation models for the tender/RFP process
• What are the most effective evaluation methodologies available?
• Effective techniques for filtering tenders/RFPs to reduce effort while increasing effectiveness
• Best practice techniques for documenting evaluation models
Best practice procedures for rejecting proposals
• How to rank and shortlist tenders/RFPs
• Designing benchmark criteria to evaluate expressions of interest and bids
• Establishing a review panel: Who should be involved?
• How to assess minimum conformity to process when evaluating tenders/RFPs
• Effectively assessing negotiable contractual arrangements
• Recognising the signs of minimum compliance
• What is tolerable risk and how do you assess it?
• How do you assess costs?
Evaluating your suppliers: Developing key measures for a total cost and value approach
• What are the roles and responsibilities of a procurement manager in the supplier relationship?
• Creating a supplier development plan
• What are the key phases of supplier management?
• Analysis of the practical tools available for effective supplier management
• Developing tools and techniques that can be applied to any supplier relationship
• How can you measure supplier performance?
• The future of supplier relationships in the electronic age
• Assessing the value of moving to a partnership agreement
• How to move towards a total cost value partnership
Managing the legal issues in the process
• The growing demand for performance- based contracts
• Determining the rewards/penalties to encourage contractor performance
• What do you do when it all falls apart?
• The remedies available for breach of contract including damages, specific performance and injunctions
• Examining the risk factors for the claimant
• Termination of the agreement
Post tender/RFP activities: Negotiating and awarding the contract
• Methodologies for responding to client queries
• Advising the successful applicant
• Obligations regarding tender/RFP rejection
• The legal pitfalls
• Post tender/RFP negotiations
• RFP tags
• Letters of intent
Facilitator
Bernie Diver, Managing Director, Strategic Sourcing
The Strategic Sourcing Consultancy was created by Bernie Diver in 2005. Prior to establishing this business Bernie operated as an independent consultant working through a number of established consultancy firms. Through the establishment of Strategic Sourcing, Bernie has committed to ensuring sustainability for both clients and suppliers through the implementation of the right strategies to deliver the best Total Cost of Ownership possible.
Bernie has advised many leading companies in the negotiation of major strategic sourcing transactions. Some of the clients advised include Air NZ, RNZAF, Carter Holt Harvey, Fletchers, The Rank Group, Goodman Fielder, and the Wellington City Council. Bernie has been involved in international negotiations with GE, Air France Industries, Boeing, Rockwell Collins, and PMP Pty Limited.
Bernie’s focus is to assist companies to approach their negotiations using structure and strategic thinking. Studying negotiation at Harvard Business School has enabled Bernie to combine his experience and passion for negotiation with the very best of practical frameworks to create value for clients.
Bernie Diver is also facilitating:
In-house Training
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