The great benefit potential buyers experience by purchasing through tenders is greater competition on the quality of solutions offered leading to cost savings. Similarly a potential supplier can find that the tendering process can lead to savings in the cost of selling and an organized approach to expanding their business.
It is currently estimated that at Public Procurement accounts for 25% of the world's annual GDP. This translates into a market-size of $1300 bn in the US, $1000 bn in Europe, $150 Bn in Africa & much more in Asia, Middle East, East Europe, and South America.
It still remains the fairest way for buyers to ensure they have received the best offer from the market. Tendering gives suppliers of products or services the same timeframe within which to respond and the same objectives to achieve. No preferential treatment is given to any potential supplier.
Once the invitation is published, the tendering process limits special treatment and potential for favoritism. Every submission is assessed on the merits of the supplier’s written response.
Businesses that win tenders demonstrate skill at addressing the requested instructions and communicating a compelling solution to the buyer’s evaluation panel. They take extra care to prepare a submission that responds directly to the questions asked. They address the requirements specified and communicate an understanding of the objectives the buyer wants to achieve.
Businesses that lose a client, or fail to win the tender, often blame the process before at their submissions.
We need to get a grip on tendering if we want our businesses to get amongst serious money! Our clients have told us many stories that reflect the value they get from tendering opportunities and I would share some of those in coming articles.With other form of marketing-such as advertising,telemarketing,direct mail and sales representation-there is generally a lot of effort and expense incurred in identifying potential clients who may have need for your product or services.It can take some time to develop a cold market to the stage where you can submit a quote or proposal for the sale,not to mention the often lengthy decision making process and changing requirements of each decision maker.The First Sale to new prospect is often made at unusually low margins to get your foot in the door.
Author-Rakesh Verma is working with leading Infomediary and Bidding Consultancy Company having vast experience in International Tendering(Email-rakesh.verma@tendersinfo.com)
Wednesday, June 18, 2008
Tuesday, June 17, 2008
Preparing the Perfect Tender
How you resource and prepare your tender response is crucial factor in presenting a winning tender. Once your company is in receipt of the tender documentation it must put into effect a dedicated tender strategy.
On receipt of Bidding document start a timescale diary. Log the receipt date and the due date for return of the document. Based on these dates and any other date stated for a pre-tender meeting, set out your response and appoint a Tender Manager with the authority to conscript assistance from other expertise within your company.
Tender Manager’s Initial Function.
a) Decide whether to tender or not.
b) Duplicate the required number of copies.
c) Produce a tender timescale diary.
d) Safety store two copies for the tender response.
e) Read the tender document and send off for any relevant reference documents stated in the document.
f) Log the date of request for this documentation and ensure its speedy receipt.
g) Decide what team of experts is required to complete the tender.
h) Call an initial meeting of the tender team.
(This may include input from your design, production, finance, legal, commercial and sales personnel. It is important to include any sales personnel who have knowledge of the client; they are likely to appreciate from their past contact any requirements the client feels are important. These may not be obvious from, or even stated in, the tender document, but when addressed in your tender are likely to be positively considered. This sets your bid above those of your competitors.)
First Tender Team Meeting
At the initial meeting agenda:
a) Read through the tender documents.
b) Reconsider decision to tender.
c) Assign different aspects of the tender to appropriate personnel present.
d) Note clearly on each copy who is responsible for each item.
e) Having referred to the tender timescale diary, fix a date for a second team meeting by which time all assigned work is to be completed.
*Should you decide to decline to tender because of various reasons, notify the tendering authority immediately. Give clear reasons for your decisions and express a wish to be consider for future contracts.
If, as a result of your team`s initial meeting, clarification is required, detail your questions for presentation at the pre-tender meeting or send the questions to the issuing authority for clarification; always send by fax and / or recorded delivery. Note the date of your request in your tender timescale and if there is no response within few days contact the client personnel.
Author: Rakesh Verma is working with leading B2B Infomediary and bidding Consultancy Company having vast experience in International tendering. (e-mail-rakesh.verma@tendersinfo.com)
On receipt of Bidding document start a timescale diary. Log the receipt date and the due date for return of the document. Based on these dates and any other date stated for a pre-tender meeting, set out your response and appoint a Tender Manager with the authority to conscript assistance from other expertise within your company.
Tender Manager’s Initial Function.
a) Decide whether to tender or not.
b) Duplicate the required number of copies.
c) Produce a tender timescale diary.
d) Safety store two copies for the tender response.
e) Read the tender document and send off for any relevant reference documents stated in the document.
f) Log the date of request for this documentation and ensure its speedy receipt.
g) Decide what team of experts is required to complete the tender.
h) Call an initial meeting of the tender team.
(This may include input from your design, production, finance, legal, commercial and sales personnel. It is important to include any sales personnel who have knowledge of the client; they are likely to appreciate from their past contact any requirements the client feels are important. These may not be obvious from, or even stated in, the tender document, but when addressed in your tender are likely to be positively considered. This sets your bid above those of your competitors.)
First Tender Team Meeting
At the initial meeting agenda:
a) Read through the tender documents.
b) Reconsider decision to tender.
c) Assign different aspects of the tender to appropriate personnel present.
d) Note clearly on each copy who is responsible for each item.
e) Having referred to the tender timescale diary, fix a date for a second team meeting by which time all assigned work is to be completed.
*Should you decide to decline to tender because of various reasons, notify the tendering authority immediately. Give clear reasons for your decisions and express a wish to be consider for future contracts.
If, as a result of your team`s initial meeting, clarification is required, detail your questions for presentation at the pre-tender meeting or send the questions to the issuing authority for clarification; always send by fax and / or recorded delivery. Note the date of your request in your tender timescale and if there is no response within few days contact the client personnel.
Author: Rakesh Verma is working with leading B2B Infomediary and bidding Consultancy Company having vast experience in International tendering. (e-mail-rakesh.verma@tendersinfo.com)
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