"Are you still following the rules set by your vendors?”
Today’s post is from our SafeSourcing Archives.
I was in a casino recently and overheard this conversation after an explanation of how one of the games worked:
“Well it seems like there are more ways to lose then there are to win.”
“Sure the House makes the rules.”
“That doesn’t seem very fair.”
“Yeah, but you don’t think they build a new casino here every year because they LOSE money do you?”
Unfortunately many companies move along playing by their vendor rules, paying for services and items that aren’t as favorable as they could be. Today’s blog will look at a few ways that you can turn that around and begin setting the rules for your benefit.
Price Model Consolidation – One of the common things that happen throughout the course of any Request for Proposal is the aspect of collecting the proposed pricing. As will happen in almost any request for proposal, the vendors will have slightly different pricing models and fees that they offer you with rarely any two being the same. Use the results of the RFP to choose the pricing model pieces that suit your company the best and create a strategy that you can then have the suppliers offer a “best and final” proposal before you make your final decision that will allow you to compare each vendor on price as well as value offering.
RFQ Terms & Conditions – One of the areas where companies frequently miss out, is the opportunity to set the foundation of the Terms and Conditions you want before you invite them to submit a proposal. By determining in advance the terms you expect the awarded vendor to offer you will eliminate vendors who can’t or refuse to meet you terms in advance, saving you time in the end. If they have an amendment to the terms and conditions you specify you can always allow they submit that requested modification to you in advance so that you can determine if you would still like to see a proposal from them.
Sample Legal Documents – Another area that can really help with the eventual contract that will provide your company the greatest value is to get and receive samples of the legal documents that the agreement will eventually be based around. This means that getting Letters of Intent or Sample Contracts from your legal department to event participants so that they will know what will eventually be expected of them or collecting Service Level Agreements from the vendor so you know what the scope of what they will offer you can be critical in identifying and overcoming hurdles before they ever start. It also means that you can work with you suppliers to determine details in advance that provide your company the greatest offering.
For more information how you can begin to start setting your own Procurement Rules, please contact a SafeSourcing Project Manager.
We look forward to your comments.