Creating Requests for Information, Requests for Pricing and Invitations to Tender
Duration
2 days.
What is this course about?
This course has been developed from our experience of managing procurement for companies that we have worked for and companies that have engaged us to manage procurement.
We take a pragmatic and straightforward approach and use our templates not as strait jackets but as starting points, looking at how to include terms and conditions and also how to engage the creativity of suppliers. While it is as well to be specific about requirements, it is important to be flexible enough in the creation of Requests for Information (RFIs), requests for pricing (RFPs0 and invitations to tender (ITTs) so that approaches that may not be generally known can be introduced by potential suppliers. Handling that flexibility is a vital element as technology, methods, processes and services change so fast.
We look at RFIs, RFPs and ITTs from two perspectives:
- From the point of view of the company issuing the documents
- From the point of view of the company that responds to the documents.
We find that very often the procurement process can be counter-productive in terms of the ensuing relationships and the form and nature of the RFI, RFP and ITT documents can have a major effect on the relationship.
Who would benefit?
- Senior management
- Programme managers
- Board members
Objectives
The objectives of this course include:
- Creating a specific and effective document to support the procurement process
- Establishing the basis for the future relationship with the selected supplier
- Understanding the role of flexibility and including it in the process
- Understanding of the costs involved in developing RFIs, RFPs and ITTs and their assessment
- Engagement with the return on investment in using RFIs, RFPs and ITTs, especially in the area of when to go out to re-tender.
Key topics covered
- Analysis of what makes a good discovery document and how to begin the process of constructing it
- Interested parties who should be consulted in the creation of the document and how to balance the often conflicting demands with a business
- What relationship required with eventual supplier?
- Allowing for potential supplier additions and creativity
- Writing the document - style, layout, format, process for completion
- Testing the document internally
- Time scales for potential suppliers
- Process while waiting for responses
- Assessment processes, and a formal evaluation scheme
- Short listing
- Criteria based selection processes.
Course programme
1. Analysis of what is required:
- Procurement objectives and how to establish them
- Information gathered so far and tabulating it
- Creating a list of potential suppliers who will be invited to tender and validating that list
- What relevant information is required about those suppliers?
- Importance of heat and light: don't create questions that generate heat but no light
- How would your company feel if it received this document
- The use of non disclosure agreements (NDAs)
- Is an RFI, RFP or ITT justified or is a different approach more valuable?
- Cost control by more careful use of RFIs, RFPs and ITTs
2. Ensuring that the document meets the wider company needs:
- Commercial stakeholders and commercial interest groups across the company
- Sales and marketing engagement
- Company secretary and legal counsel
- Board interests
3. Relationship with eventual supplier:
- Supplier, partner, joint venture
- How will it be managed
- What needs to be in the document
4. Potential supplier creativity:
- Is this required or are the requirements fixed
- How to include this
- What impact will it make on interested parties - see above
5. Writing the document
- Use of templates - and which templates
- Writing - style, approach, objectives
- Editing and ensuring conformity and consistency
- Filing and audit trail issuesø
6. Document testing
- Appraisal of the document prior to transmission
- Reliability, validity and consistency
7. Time scales for responses
- Real deadlines and artificial deadlines
- Deadlines for internal assessments and responses
- Optimum timing and pitfalls
8. Processes while awaiting responses
- Questions from potential suppliers
- Responses to questions
- Managing expectations and responses
- Understanding pressures on suppliers
9. Evaluation
- Formal methods
- Informal methods
- Consultation across the company
- Evaluation of the assessment prior to action
10. Short listing
- Taking into account interested parties
- Obtaining sign off and how
- Ensuring no challenge
- Rejection criteria
- Rejection letters
- Invitation to shortlisted process
11. Final assessment
- Need for more questions and how to deal with that
- Understanding of the processes
- Making the final selection: criteria based selection and non-criteria based selection
- Rejection letter(s)
- Acceptance letters
Course outcomes
The outcomes include:
- Greater confidence in understanding the procurement process around RFI, RFP and ITT documents
- Wider company buy in to the process and the outcomes
- Much more tightly controlled responses and focus
- Better preparation for the issuing and receiving of proposals, including dealing with questions for more information from potential suppliers
- Greater confidence in the shortlisting and final selection processes
- A legally water-tight approach that addresses potential challenges and prepares the company for defence of its processes and selection
- A more cost-effective approach to creating such documents
- A better, stronger and more productive relationship between the contracting parties.
