RFP-Respond/Not RespondCosts to the Corporation/Vendors

Maureen Acker, The Dow Chemical CompanyJohn Sculley, RIS Consulting GroupDon Smith, Altair Global Relocation

“Trust, But Verify”Quote from Ronald Reagan when dealing with the Russians and the

US missile agreement in 1987

Maureen Acker

The Dow Chemical Company

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Working with Procurement

Step 1: Process Pre-workStep 2: RFP DevelopmentStep 3: RFP LaunchStep 4: Service Provider EvaluationStep 5: Service Provider SelectionStep 6: Contact Development/AwardStep 7: Transition/ImplementationStep 8: Ongoing Service Provider Management

Step 1 Step 4 Step 5 Step 6 Step 7 Step 8Step 2 Step 3

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Level of Engagement: Procurement

Step 1 Step 4 Step 5 Step 6 Step 7 Step 8Step 2 Step 3

Procurement Engagement Varies by Activity

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RFP Process - Costs

• Average size team – 6 people• Average duration – 3-6 months• Costs

- People - $20,000 - $30,000 - Travel for onsite visits -

$3,000-$6000 - Switching costs - $5000-

$20,000 - Consultant - $10,000-$50,000 - Total $38,000-$106,000

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RFP - Benefits

• Refresh program offerings• Reduce costs• Improve customer (internal)

satisfaction• Enhance relationships• Solidify Strategy

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Developing Strategic Partnerships

• Move from regular bidding process (i.e. every three years) to ongoing tracking

• Understand client strategy and 5 year plan• Proactive in managing program• Assist client in understanding “total cost”

and how you are managing• Benchmarking events integrated into

contract

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Developing a Strategic Partnership

Convert information into knowledge Housing market worst in 20 years

Deregulation of HHG

Costs have increased 20%

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John B. Sculley

RIS Consulting Group

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A Consultant’s Perspective

• Our Place in the Relocation Industry: Independence, Neutrality, Objectivityo Advisors to Employers: Needs & Solutions

• Relocation Assistance Policy Design• Administrative Processes & Service Model• Supplier Specifications & Selection• Program Performance Evaluation

o Research & Feedback for Suppliers• Customer & Client Satisfaction Measurement• Performance & Perceptual Assessments• New Product Testing & Training

o Educational Resource to Industry Associations

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A Consultant’s Perspective

• The RFP Process: What We Do – Lead/Facilitate/Support Client Team’s Process

• Past Program Results & RFP Objectives• Service Specifications & Decision Criteria• Supplier Screening & Evaluation

- RFI, Proposals & Presentations- Reference Checks & Site Visits- Selection Rationale & Documentation- Negotiation & Implementation Advice

• Equip Client to Make Informed Decisions!

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A Consultant’s Perspective• The RFP Process: What We Experience

– The Good -- Professionalism, Integrity• Concise needs-based RFP• Small field of pre-qualified suppliers• Qualitative & quantitative decision model

– The Bad -- Indecisive, Expedient• Uncertain objectives and preferences• Irrelevant, excessive data collection

– The Ugly – One-sided, Uninformed• Cattle call of bidders• Poor time management• Unrealistic, disrespectful expectations • Subjective decisions without feedback to bidders

Result: Suppliers’ Reluctance / Selectivity on RFP Responses

Donald F. Smith

Altair Global Relocation

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Challenges Facing Bidders

• Lack of Regular Pre-bid Access• Limited Relocation Expertise in

Procurement• Less Time to Build Differentiation • Trend Towards On-Line Bid Process

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Dealing With The Challenges

• Commit to Add Value on Every Call• Become a Trusted Industry Resource• Be Respectful of Time and Schedule• Deliver a World-Class Written Proposal

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Information Required to Assess Opportunity

• % Win/Loss When Supplier Has No Prior Relationship

• % Win/Loss When RFP is Domestic Only, or Domestic & Global

• % Win/Loss When Global is Administered Centrally w/in US or Tri-regionally

• If You Decline to Bid:- Personal Call- Written Note

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Costs Associated WithBid Process:

Cash In the DoorMay 31, 2008

Implementation$40,000

1st Authorization Received January 1, 2008

Contract Negotiation

$20,000

Cumulative Cost

by Phase

Site Visit$15,000

Presentation$13,800

RFP$6,300

RFI$2,300

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Q & A