10 steps to successful tendering

1. TENDERING TAKES TIME

Getting the tender process right is crucial to selecting the best supplier. Be realistic about the time it will take to review fleet requirements, draw up the tender document, select candidates, evaluate responses and make a selection.

Above all, allow adequate time for implementing the contract after appointment.

2. BEGIN BY CONSULTING WIDELY

Get input from all departments in your organisation with a stake in the fleet and from drivers and their managers, before starting to draw up the tender document.

This will save time later by highlighting whether questions are critical or irrelevant.

It also enables fleet firms to identify potential areas where suppliers can add value to the basic requirement.

3. SEE HOW OTHERS DO IT

Talk to other fleets about the lessons they have learned while tendering.
Also, do not be afraid to talk to the leasing companies themselves.

The reputable ones will give good, unbiased advice on structuring a tender to obtain the best responses.

4. DEMAND CLARITY

Aim for a tender document that is as concise and unambiguous as humanly possible.

Set clear guidelines for suppliers’ responses and stick to the timetable.

Be just as ruthless when judging responses.

Clear questions demand clear answers and deadlines are deadlines.

5. SHORTLIST FROM A WIDE INITIAL SELECTION

Before sending out tender documents, it is a good idea to see a wide selection of suppliers’ CVs to identify companies that can definitely meet your high-level requirements.

Get these by issuing a Request for Information (RFI) questionnaire.

6. MEET YOUR SHORTLIST BEFORE INVITING TENDERS

Meet the companies on your shortlist to ensure that they will fit in with a company culture and that appointment would be considered.

If not, they should be taken off the list.

Pre-tender meetings are also an opportunity to fine-tune the tender document.

7. PLAY A LEVEL FIELD

When the tender is out, make sure the process is fair by communicating openly with all parties.

If a supplier asks for information that is missing from the document, provide the question and answer to the other companies.

Give candidates time to prepare a high-quality response, ideally no less than four weeks.

8. JUDGE ON VALUE AS WELL AS PRICE

Require suppliers to separate all elements of their prices to enable like-for-like comparisons.

Allow leeway in the tender structure for suppliers to demonstrate how they will add value beyond their basic pricing.

9. VISIT SHORT-LISTED CANDIDATES AND TAKE UP REFERENCES

A visit to a candidate gives a feel for the way they run their own business and for firms to meet the people who would handle their cars and drivers.

Always ask for references and follow them up: fleet contracts run into millions of pounds, so it is well worth taking time to visit referrers.

10. PRESENT AND APPOINT

If, at this stage, there is still more than one candidate for a contract, ask the leading two suppliers to make a final presentation.

This is the time to clarify fully the expectations of the relationship and deal with any issues highlighted by the references.
Source: Alphabet (GB)

► Five top tips for fleets 

•  Have a meeting with all the suppliers the firm has invited to tender or at least make someone available on the phone. This time spent upfront will make sure hours are not wasted later sifting through tenders that don’t meet objectives 

•  Give background information about the company and fleet objectives at the beginning of the document to allow suppliers to develop the right solution 

•  Don’t be too prescriptive about requirements – allow room for the supplier to offer alternative solutions that may be more suited to the business requirements 

•  Make sure the fleet compares like with like. Include questions that help the fleet understand what is included in the quotation. Watch out for hidden costs such as maintenance, road tax, early terminations and include questions about the quality of service you will receive 

•  Set a realistic timing plan and stick to it

Source: Interleasing  

► How to tell if you contract is being   managed properly

A contract is being managed successfully if the following conditions are met: 
 

• Service delivery arrangements continueto be satisfactory to both customer and service provider 
• Expected business benefits and valuefor money are being realised 
• The service provider is co-operative and responsive 
• The customer knows its obligations under the contract 
• Absence of dispute
• Clear escalation routes
• No surprises

You will usually need performance measures to cover all aspects of a service arrangement:

• Cost and value obtained
• Performance and customer satisfaction
• Delivery improvement and added value
• Delivery capability
• Benefits realised
• Relationship strength and responsiveness

It is important that the performance measures selected offer clear and demonstrable evidence of the success (or otherwise) of the relationship.

We also ensure we only get the right manage-ment information when we need it.

We don’t want to be bombarded with unnecessary data. 
Source: John Webb, fleet manager