how to write the perfect tender ~ global move management

GLOBAL MOVE MANAGEMENT.

HOW TO WRITE THE PERFECT TENDER.

There are two elements to ensuring a tender produces the

right results

There are two elements to ensuring a tender produces the

right results

1 Asking the right questions

There are two elements to ensuring a tender produces the

right results

1 Asking the right questions

2 Correctly interpreting the responses

WE WILL COVER…

WE WILL COVER…

What topics to include

WE WILL COVER…

How to ask the right questions

What topics to include

WE WILL COVER…

Necessary breadth and depth of how to cover each topic

How to ask the right questions

What topics to include

“Respondents to tenders will typically be limited in their responses to the parameters provided by the tender as there is little or no scope for

them to step outside this structure.

So the questions asked and information requested in the process will determine the

quality of information received.”

UniGroup Relocation Network “The Perfect Tender for Move Management Services” White paper

requested in the process will determine the

UniGroup Relocation Network

1. ASK QUESTIONS THAT LEAVE NO ROOM TO HIDE

Generic questions generate generic responses from which little meaning is gained

GENERAL GUIDELINES

2. WORD QUESTIONS TO PROVOKE A SUBSTANTIAL RESPONSE

Use secondary questioning to test and evidence the initial response

GENERAL GUIDELINES

3. AVOID ASKING QUESTIONS FOR THE SAKE OF IT

Avoid asking things just because they’ve been asked in previous tenders or are in a template.

Investigate the relevance for your current/future requirement.

GENERAL GUIDELINES

A note on scoring…. Decide on what are the most important things you’re

looking for.

Weight your questions and publish them in the tender request.

Respondents will be encouraged to provide the

appropriate level of information for the areas

that are of particular interest to you.

INFORMATION TO GIVE What to tell potential respondents

INFORMATION TO GIVE:

Background

Even though it might be obvious what you do it’s important to provide background info.

The better respondents understand the rationale behind the tender the more accurately they can address your specific needs

INFORMATION TO GIVE:

Historical Data Build up and share a detailed picture of potential service usage. This helps to obtain best value and protect yourself from hidden costs after signing a contract.

INFORMATION TO GIVE:

Historical Data Build up and share a detailed picture of potential service usage. This helps to obtain best value and protect yourself from hidden costs after signing a contract.

1 Traffic lanes

INFORMATION TO GIVE:

Historical Data Build up and share a detailed picture of potential service usage. This helps to obtain best value and protect yourself from hidden costs after signing a contract.

1 Traffic lanes

2 Allowances

Which traffic lanes are your employees moving along?

TRAFFIC LANES

Which traffic lanes are your employees moving along?

TRAFFIC LANES What is the volume of traffic?

Which traffic lanes are your employees moving along?

TRAFFIC LANES What is the volume of traffic?

What is the demographic?

EXAMPLE:

In 2014 we saw a total of 30 international moves. 90% between London and New York of which 40% were couples, 50% singles and the remaining 10% families

“ ”

ALLOWANCES

Detail allowances for your employees

ALLOWANCES

Detail allowances for your employees Include any tiers (e.g. through demographic, position or length of assignment)

ALLOWANCES

Detail allowances for your employees Include any tiers (e.g. through demographic, position or length of assignment) Include allowed additional expenses or exceptions (e.g. dismantling / vehicles / packing / pets)

EXAMPLE:

Single people have a volume allowance of 25m3, couples 30m3 and families 60m3. We allow full packing services and assignees may ship up to one vehicle

“ ”

“Even though history may not accurately reflect the future it is a potential indication, and of course it is valuable to provide any additional information on anything major that is changing in your organisation that could affect this area during the contract.”

INFORMATION TO GIVE:

Scope 1 Size of outsourcing and

supplier model

Do you want a company to carry out a number of moves in a certain region, are you looking for move management services? Do you want more than one supplier?

INFORMATION TO GIVE:

Scope 2 Relocation vs. Moving

Are you just looking for household goods moving services or do you want to include some additional relocation services?

Specialist companies exist for both individually as well as those that provide multiple services as a single source.

INFORMATION TO GIVE:

Scope 2 Relocation vs. Moving

Are you just looking for household goods moving services or do you want to include some additional relocation services?

Specialist companies exist for both individually as well as those that provide multiple services as a single source.

Click here to view a list of possible additional relocation services you might want to consider including

INFORMATION TO GIVE:

Scope 3 Geographical Area

Understanding your organisation structure will drive which outsourcing approach and processes work best.

Is global mobility centrally controlled or handled by local entities? Or regionally?

COMPANY QUESTIONS How to assess company characteristics

INFORMATION TO GATHER:

COMPANY QUESTIONS Areas of information to evaluate if a supplier is right for you

Experience

Network

Financial stability

Capacity

Technology

Sustainability

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COMPANY CHARACHTERISTICS

Experience What experience does a supplier have in providing the services you’re looking for, for similar organisations?

Follow up with secondary questions to gain evidence:

Case studies

References

AVOID MISLEADING OR ‘SALES’ ANSWERS:

Q: Do you have experience with managing similar customers? A: Yes

AVOID MISLEADING OR ‘SALES’ ANSWERS:

Q: Do you have experience with managing similar customers? A: Yes

Q: Illustrate your experience working with similar contracts. Include details on size and scope of contract

COMPANY CHARACHTERISTICS

Networks All relocation providers operate a network of some shape or form to service global requirements.

COMPANY CHARACHTERISTICS

Networks Find out about the nature of the network, how it is structured and operated to understand to what extent the supplier will be able to ensure quality and service delivery. Look for suppliers with a geographical footprint that compares well to yours.

Find out about the nature of the network, how it is structured and operated to understand to what extent the supplier will be

geographical footprint that

AVOID MISLEADING OR ‘SALES’ ANSWERS:

Q: Describe your global network A: We have a network of dedicated and certified worldwide partners

AVOID MISLEADING OR ‘SALES’ ANSWERS:

Q: Describe your global network A: We have a network of dedicated and certified worldwide partners

Q1: How are agents selected? Is there

freedom to select the best-in-class / our preferred suppliers in any region?

Q2: Who supervises and manages the network?

Q3: What procedures are in place to ensure consistent quality and service delivery?

COMPANY CHARACHTERISTICS

Financial Stability Many tenders just ask for the last 3 years financial accounts. This could be misleading because it: Is only historic information

May only address financials of holding corporation and not signing entity

Can be up to 18 months out of date

COMPANY CHARACHTERISTICS

Financial Stability Many tenders just ask for the last 3 years financial accounts. This could be misleading because it: Is only historic information

May only address financials of holding corporation and not signing entity

Can be up to 18 months out of date

Ask for more detailed information about ratios and guarantees based on information no more than 3 months old.

COMPANY CHARACHTERISTICS

Capacity Relate capacity questions to the size of the contract.

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COMPANY CHARACHTERISTICS

Capacity Relate capacity questions to the size of the contract.

Ask about the process for out of the ordinary situations i.e. short notice moves

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COMPANY CHARACHTERISTICS

Capacity Relate capacity questions to the size of the contract.

Ask about the process for out of the ordinary situations i.e. short notice moves

Find out how suppliers address peak season demands

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COMPANY CHARACHTERISTICS

Technology

How are systems integrated within the bidders organisation? Are they used worldwide?

What technology exists to support the assignee?

What technology exists to support your offices?

Is data real time or is there a delay?

COMPANY CHARACHTERISTICS

How are systems integrated within the bidders

As well as finding out what move management systems are utlised also obtain information regarding:

Screenshots or better still a live demo as part of the tender process can help evaluate areas like move authorisations, inventories, tracking and tracing, invoicing and reporting

COMPANY CHARACHTERISTICS

Sustainability Understanding a company’s approach to sustainability and corporate responsibility can help you identify if your organisations are a good cultural fit and ensure you are meeting your own sustainability goals..

COMPANY CHARACHTERISTICS

Sustainability What is the company’s approach to supporting and developing it’s employees and ensuring their wellbeing?

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COMPANY CHARACHTERISTICS

Sustainability What is the company’s approach to supporting and developing it’s employees and ensuring their wellbeing?

What is their approach to reducing impact on the environment?

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COMPANY CHARACHTERISTICS

Sustainability What is the company’s approach to supporting and developing it’s employees and ensuring their wellbeing?

What is their approach to reducing impact on the environment?

How do they support the community?

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COMPANY CHARACHTERISTICS

Sustainability What is the company’s approach to supporting and developing it’s employees and ensuring their wellbeing?

What is their approach to reducing impact on the environment?

How do they support the community?

How does their strategy extend to their own suppliers or partners?

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COMPANY CHARACHTERISTICS

Sustainability What is the company’s approach to supporting and developing it’s employees and ensuring their wellbeing?

What is their approach to reducing impact on the environment?

How do they support the community?

How does their strategy extend to their own suppliers or partners?

How else are they considering the future?

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Do they practice what they preach? Look for substantiation of any claims with regard to sustainability.

Case studies or examples Copies of policies or procedures Certifications Audit results/statistics

PROCESS QUESTIONS How to assess a respondents processes

INFORMATION TO GATHER:

PROCESS QUESTIONS Areas of information to evaluate if a supplier is right for you

Operational Management

Account Management

Service Level Agreements

Reporting and Quality

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PROCESS CHARACHTERISTICS

Operational Management Ask in detail about the service delivery model. What is the process of a relocation? Who is in communication and control at each stage? Avoid questions that can be answered with just a simple flow chart response.

AVOID MISLEADING OR ‘SALES’ ANSWERS:

Q: Describe your operational process from initiation to invoicing A: We have a single point of contact responsible from start to finish with full control over every aspect of the move

AVOID MISLEADING OR ‘SALES’ ANSWERS:

Q: Describe your operational process from initiation to invoicing A: We have a single point of contact responsible from start to finish with full control over every aspect of the move

Q1: Who will be in control at each stage

and why? Q2: Who is initiating and monitoring

activity? Q3: What communication channels are

open to the assignee? Q4: Who has overall responsibility?

PROCESS CHARACHTERISTICS

Account Management How will they accommodate your

structure?

How do multiple coordination centers work?

What about implementation?

What about complaints/claims handling?

Address your concerns

If there is something you have had problems with in the past, or that is particularly important to you from experience or research, use your questions to find out how the supplier would handle a similar situation or aspect of your account.

PROCESS CHARACHTERISTICS

Service Level Agreements Define the levels of performance you require.

Select KPI’s that are important to you

Ask how the supplier ensures these are achieved

Get evidence of performance with existing contracts

Specify how you will monitor KPI’s and the implications if not met.

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A good SLA can reduce direct, indirect and hidden costs of an assignment

A good SLA can reduce direct, indirect and hidden costs of an assignment

Examples: Frequently delayed shipments mean increased temporary accommodation costs

High % of insurance claims create opportunity cost of lost productivity & employee satisfaction

Suggested KPI’s

As with all KPI’s those used in your SLA must be SMART*

* Specific, measurable, acceptable, realistic, time bound

• Time limits for initial contact • Time limits for proposals

(budget and schedule) • Accuracy of quotes • Maximum transit times • Assignee satisfaction • Proportion / severity of

complaints • Insurance claim value/ratio

PROCESS CHARACHTERISTICS

Reporting & Information What information is important to you and why?

Specify what reports you would like to have and how frequently

Ask about suggested or existing reports the supplier would recommend/ provide as standard

Find out how you obtain reports. Can you run reports yourself on demand?

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Ask to see sample reports so you can evaluate if the information and format suits you. If not, can they be customised?

PROCESS CHARACHTERISTICS

Quality

Quality standards like ISO and FIDI FAIM are a great place to start as certification is a good independent indication of overall approach to quality, but make sure to use secondary questions to dig deeper.

AVOID MISLEADING OR ‘SALES’ ANSWERS:

Q: Describe your quality management system A: We are ISO and FAIM certified.

AVOID MISLEADING OR ‘SALES’ ANSWERS:

Q: Describe your quality management system A: We are ISO and FAIM certified.

Q1: Does the certification apply to the whole organisation or just parts?

Q2: How are quality control ideals implemented throughout the company?

Q3: To what extent is the quality of

subcontractors or partners controlled?

COST QUESTIONS How to evaluate pricing and other costs

INFORMATION TO GATHER:

COST QUESTIONS Areas of information to evaluate if a supplier is right for you

Pricing (Rates)

Cost Savings

Invoicing

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Ask for costs in a way that enables you to make like for like

comparisons.

Give exact criteria and instructions on how to base costs to reduce risk of

additional costs.

COST CHARACHTERISTICS

Rate Requests Comprehensive request of rates for different traffic lanes Carefully evaluate your traffic lanes and required services and request rates for the majority.

Include additional costs e.g. storage charges, specialist handling equipment or bolt on services which should be itemised on a quote.

Even if you don’t approve them every time you’ll need to understand the bigger picture.

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Don’t leave room for suppliers to quote an attractive rate on a small number of lanes / services to book the contract and make up losses on those you didn’t specify in your request.

Avoid the Trojan Horse….

Don’t forget insurance….

Insurance rates can have a considerable impact on the overall cost of a move. Many suppliers use insurance revenue to subsidise the cost of a move.

Difference in premium %

Cost increase %

0.2% 3.2%

0.4% 6.5%

0.6% 9.7%

1% 16.2%

Don’t forget insurance….

Insurance rates can have a considerable impact on the overall cost of a move. Many suppliers use insurance revenue to subsidise the cost of a move.

Difference in premium %

Cost increase %

0.2% 3.2%

0.4% 6.5%

0.6% 9.7%

1% 16.2%

An increase in premium of just 1% can mean 16.2% higher overall

costs!

COST CHARACHTERISTICS

Rate Requests Levels of Transparency Define the level of transparency you want in breaking down costs, e.g. management fees, freight fees, shipping/air freight costs.

Balance the need for sufficient information with what is practical for suppliers to provide remembering all may determine costs in different ways. For example, stipulating labour costs of packing based on hourly rates may be an onerous task for a bidder.

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These rates are variable, so if you demand they are fixed for a long period of time the supplier may charge a higher rate to cover the risk of any increases in these costs.

To avoid this shipping and airfreight costs should be quoted separately and reviewed every 6-12 months.

MANAGEMENT OF FREIGHT COSTS

COST CHARACHTERISTICS

Rate Requests Service Levels Provide info on what service levels rates should be based on. E.g. maximum transit times, notice period.

Make sure to ask details about what’s included/excluded in any fixed prices.

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COST CHARACHTERISTICS

Rate Requests Service Levels Provide info on what service levels rates should be based on. E.g. maximum transit times, notice period.

Make sure to ask details about what’s included/excluded in any fixed prices.

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Click here to request a list of Common inclusions and exclusions

for international moving rates

Currency rates fluctuate so if a supplier fixes rates in one currency a premium may be added to take account of the risk. The longer you request rates are fixed for the more the risk and the higher the premium may be. To limit this provide a mechanism within the contract to periodically apply the actual currency level at a particular time OR ask for rates in multiple currencies.

A note on currency rates…

£

COST CHARACHTERISTICS:

Writing your rate request Usually comprises a grid showing change in rate with consignment size. Each mode of transport (air, sea or road) may have a different grid and set of units – typically:

Road ~ volume/distance

Air ~ gross size/weight

Sea ~ lift van/container size or loose load volume

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Drawing up a rates grid It’s best to consult with experts at supplier level when it comes to building your rates grid.

Reduces risk of misunderstandings or future hidden costs

Helps you build a structure that returns best value for your company requirements

Makes sure the format is easy to compare responses

Drawing up a rates grid It’s best to consult with experts at supplier level when it comes to building your rates grid.

Reduces risk of misunderstandings or future hidden costs

Helps you build a structure that returns best value for your company requirements

Makes sure the format is easy to compare responses

Click to book a FREE CONSULTATION with a Bournes Relocation Expert to start designing your ‘perfect’ tender

COST CHARACHTERISTICS:

Cost Savings

What cost savings will be implemented by the supplier over the term of the contract?

Request case studies or typical cost savings achieved with other clients to enable evaluation of the likelihood and extent of savings being delivered.

COST CHARACHTERISTICS:

Invoicing

Control and invoicing affects the ‘real costs’ of working with a supplier. Ask questions about ability to invoice accurately, on time and with the appropriate supporting files in line with your own procedures.

Specify when invoices should be raised and include accuracy as a Key performance indicator.

Click to book a

FREE CONSULTATION

with a Bournes Relocation Expert

Ready to start writing your ‘Perfect Tender’?

Make it easier to evaluate and compare responses

Maximise value from your supplier partnerships

Improve the satisfaction of your assignees

Reduce the time you spend ‘managing’ moving

Bought to you by

GLOBAL MOVE MANAGEMENT.

HOW TO WRITE THE PERFECT TENDER.

bournesmoves.com/relocation