So whilst pondering my next few blogs it came to pass that 4 tender documents arrived on my desk. This in itself is far from unusual, but then I looked closer. Tenders 1&2 were for relatively small value amounts of £20,000 or below. Tender 3 was for around £45,000 in value. Whilst tender 4 was a large amount of value in the £millions.
Now my immediate question that I would ask my team is where should we focus our efforts? A relatively simple answer would be the one with the highest value. However we then have to take into account our likelihood of winning that tender. My answer would be that we should work hardest on the one that we already have a relationship with. This is the one that is not necessarily the highest value but that in my opinion we would be more likely to win.
However these tenders did cause me to question the process of tendering. Why would large companies who spend relatively little on Promotional Merchandise go to tender for £20,000. It makes little sense when one does the maths, where are the savings or the justification. Yes ok you may save a few percent on cost, but you are surely incurring hefty costs to prepare and analyse the tender documents. Is it really worth it? Sure i understand the concept and in fact the reality of the process, but to have a similar level of complexity in the tender documents for a £20 or £40k tender as for a £1M tender just does not make sense. It is also not a great use of our resources in filling it out.
So c'mon guys, tenders are fine, but make the process relate in some way to the value rather than applying the same tender process for £20k of Promo Merchandise as for £5m of IT solutions. Let it make sense for all parties!
Cheers
Simon
I am Managing Director of Merchandise Mania, a leading provider of promotional merchandise based in Borehamwood UK.
Very much a family man who loves nothing more than kicking back and relaxing with the missus and playing with our kids. One thing is for sure, there is never a dull moment in our lives!
Websites @ brandmerchandise.com merchandisemania.co.uk
Twitter @simonpatnick
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