Mention requests for proposal and the air is filled with corporate groans. However, with planning and forethought, the exercise can be simplified for the buyer and elicit a more targeted response from suppliers. Catherine Chetwynd investigates
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FIRST, KNOW WHAT YOU WANT AND THEN ARTICULATE IT CLEARLY The scattergun approach with numerous questions will invite an equally unfocused response. “This is time- consuming, confusing and expensive for both parties,” says managing director of AirPlus Yael Klein. “You would be surprised how few companies know what their spend is or the number of cardholders they have. It is difficult to bid against that.”
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THEN GET STAKEHOLDERS INVOLVED If you are running a global bid, find out their requirements in local markets, and include finance, IT, procurement and travel. “Involve a good cross- section of people who have an interest in making it work,” says travel management consultancy Inform Logistics’ managing director Ian Flint. IT knows what can be integrated and finance will know which banks your company has a relationship with. Not all of them will want to be involved but it may be politic to ask them, especially if they are funding your company’s activities.
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UNDERSTAND WHAT KIND OF PROCESS YOU WANT TO GO THROUGH Traditionally, suppliers are sent a template and are asked to respond in writing, make a presentation, or a combination of the two. There is an increasing preference for online RFPs, but taking out the human factor altogether is a mistake, says director of UK sales for American Express Amanda Salt. “It is important to meet the people you will be dealing with before you make a decision; you cannot assess the culture and fit of an organisation online.” Sending out a template – paper or online – means you receive information from disparate suppliers in an easy-to-compare format.
4 24 Buying Business Travel 2012
LOOK AT YOUR EXISTING CONTRACT BEFORE GOING OUT TO BID “Question it, look at what is working well and what isn’t, and speak to the supplier to