At Arundel, we believe the RFP process starts as soon as the contract is signed. However, many businesses start their RFP planning and process in the last 6 to 12 months of a contract. This can result in a rushed and resource-intensive process, ultimately leading to value leakage through the duration of the contract.
Starting the RFP early
Reactive Process
Too often the RFP process is squeezed into the final year of the contract, as the realisation of impending deadlines sets in.
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Planning
Simply, this is too late to have a reasonable chance of a successful outcome.
RFP process
A typical RFP process takes 9-12 months, and may also need a period of transition afterwards. Starting in the final year is unlikely to deliver a successful outcome.
Proactive process
Arundel advises our clients to begin the RFP process early and our approach is to equip you with structured processes and tools to plan effectively, simplify the outcome and reduce pressure on internal teams.
Set up commercial and business office
This may form part of transition where the ‘run books’ are created, commercial and supplier management processes are set up and governance is established.
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Document RFP
During the RFP process, suppliers provide market insights and considerable deal information. We find that often the experience from the previous RFP is not recorded and, in time, with staff turnover, valuable knowledge and future potential strategies are lost. One RFP process should inform the next.
Monitor the market
Monitoring new technologies, service management approaches and changes in the industry should be a continual process and should be reflected in the strategy and roadmap for the arrangement.
Supplier management, supplier health checks and risk assessment
Managing the performance of the supplier, including service, financial, innovation and risk, are a fundamental part of managing an outsourcing successfully. This requires robust governance, processes and personnel.
Strategic planning and formal RFP process
Directly arising from the 3 year strategic review, this process is the definition of alternative strategies for the service, and the commencement of the next RFP process.
Strategic review
After 1 year, the strategic review should focus on transition status and further plans, and progress against transformation and service objectives.
Strategic review
After 2 years, the strategic review is all about achievement of the overall business case objectives and identification of additional benefits, for example through innovation in technology.
Strategic review
The 3 year review needs to set out the strategy for renewal, extension or go-to-market for the next contract term.
Robust transition
Mobilising teams to transition the services effectively and ensure the service is set up in line with the agreed contract.
Post outsourcing deal – are you ready?
Even before the ink is dry on an outsourcing deal, organisations must mobilise internal teams to transition and/or transform services, set up the commercial office, train staff and manage the suppliers.
In our previous release (click here), we highlighted that outsourcing suppliers have the advantage – they mobilise similar post-deal teams frequently, whilst for most clients it’s every few years.
In this critical phase of a client/supplier relationship, Arundel can deploy significant experience to clients navigating their contract management challenges.
Meet the practice leader
Adam Johnson
Adam Johnson has had a 43-year career in sourcing and procurement advisory, sales, sales management, general management and consulting, leading teams and developing new businesses within large multi-national companies and smaller consulting firms. He has planned, built, and led complex products and services sales, consulting and solution teams, in over 20 countries worldwide. Career outsourcing and consulting sales exceed $5bn, and he has advised on outsourcing deals totalling ca. $2bn.
Adam Johnson
Adam Johnson has had a 43-year career in sourcing and procurement advisory, sales, sales management, general management and consulting, leading teams and developing new businesses within large multi-national companies and smaller consulting firms. He has planned, built, and led complex products and services sales, consulting and solution teams, in over 20 countries worldwide. Career outsourcing and consulting sales exceed $5bn, and he has advised on outsourcing deals totalling ca. $2bn.