Guest Article

Calyx CommunicationsGuest Article - Tendering to win

by Anne Perret, Calyx Communications.

The present economic situation is making it more likely than ever before that organisations will go out to tender to procure almost any kind of goods or services. There is an even greater attention on controlling, and -  preferably reducing - costs, and a growing tendency to prolong purchasing decisions. Underpinning these trends is an inexorable rise in the influence and power of Procurement, whether as a discrete function within an organization, or as third-party suppliers managing purchasing activities on behalf of clients.

In the last year, my company has seen a rise in the number of organisations becoming involved in tenders and asking us for help. They fall into three broad categories:

  1. First time bidders - often these are firms offering services – solicitors, surveyors and accountants for example – who have been happily serving a particular client for many years, and who are suddenly faced with having to bid for the work at the insistence of a procurement professional. This kind of procurement can come as a very nasty shock, especially for those offering professional services where business has traditionally been done in person.

  2. Business expanders – those looking to gain new business perhaps by looking in the European Journal (OJEC) for opportunities or professionals, such as GP practices, looking to open a new surgery and having to bid against competitors. Again, these people are new to bidding and often are unprepared for the complexities of competing for business in this way.

  3. Old hands, now finding that the rules have changed. These organisations are finding that the bidding process has become far more competitive, with Procurement setting the barriers to winning through each stage very high, and more competitors going for the same piece of business. We often receive calls from companies who have recently lost business they were confident of winning because their proposal did not score highly enough, or their solution was deemed insufficient. It can come as a very nasty shock to realise that the written proposal, once regarded as far less important than face-to-face selling, can now not only lose vital business, but also help to damage business reputation and future chances of working with a client.

Whether we like it or not, tendering is here to stay. So if you are having to face a bid for the first time, or if you are getting signals that an existing or highly desirable client is going to put you through a formal tender, here are three things to consider.

Qualify rigorously. The bid for everything mentality  - going for every piece of business that might be suitable – is understandable in an economic downturn, but it can damage your business. Some companies set numerical targets to keep their pipeline full. This leads to a host of problems: overworked staff, inappropriate use of human and financial resources, poor-quality proposals and failure in business-critical tenders.

Treat the process seriously. Often companies send out standard documents or field an inappropriate team chosen only because there are people who are under used. But if a piece of business is really worth winning, then it warrants being treated as a proper business project. Procurers often complain, with justification, that documents don’t answer their questions and show little understanding of their needs. Don’t let this be said of you. It may even be necessary to gain extra bid-specific skills – in proposal writing, tender documentation, negotiating with Procurement or bid management. That’s where Calyx’s services come in.

Be prepared to withdraw. This option is open to everyone, and should be considered frequently. Be conscious that not all procurements lead to contracts being awarded. Often they are nothing more than a means for an organisation to cherry-pick ideas, bring down the cost of an incumbent supplier, justify a decision-maker’s existence, or just make a procurement function look busy.  If you suspect that this might be the case – find out. Have the courage to ask questions and if you really do believe that you are merely having your brains picked, then write a polite letter saying that you wish to withdraw. Sometimes this can have a very positive effect on your position with the prospective client.

Finally always debrief. After every interaction with the prospective client, and especially after winning or losing, make sure that you document what happened – and why. Never be afraid to ask for detailed feedback. It shows that you are serious about your bidding, and even if you don’t win, you will learn something for next time.

Bidding for business can be an excellent way in which to develop or grow, especially in these times. A well prepared bid, showing professionalism in every written or spoken interaction can open up new opportunities and allow smaller or lesser known organisations to gain new business.

Calyx Communications Limited
www.calyxcomms.co.uk
01252 725950

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