Noises Off: Two bid managers and a beer…or two
I know, we were always taught it’s bad manners to listen into other peoples’ conversations. But imagine hearing two professional services’ bid managers discussing their lot over a Friday night beer?
Noises Off: Two bid managers and a beer…or two
I know, we were always taught it’s bad manners to listen into other peoples’ conversations. But imagine hearing two professional services’ bid managers discussing their lot over a Friday night beer?
We’re preaching to the converted here we know. But why do people issue tenders during holiday periods? Surely, they understand they’re probably reducing the number they’ll get back and, of those they receive, are they really like to be of the best quality? Over to two bid managers who, in order to spare their blushes, we’ve called Bemused and Bewildered.
Bemused: So then, did you get that bid submitted today?
Bewildered: Yes, thank God. Such a huge one. I’m glad that’s done.
Bemused: Tricky one to have to deal with over the holidays.
Bewildered: Yep! Typical though, isn’t it? Same every year.
Bemused: How many did we submit this time around?
Bewildered: Well. We had about five or six due the week running up to Christmas. I reckon maybe 10 or 11 landed with deadlines for January 6 or earlier. Useless stat time, but 22% of our tenders this year were issued during holiday periods!
Bemused: That’s nuts! A fifth! Why do clients do it?
Bewildered: It’s the same ever year. And it’s not just at Christmas. You can be guaranteed that, with any holiday season, a bids team is going to be flooded with tenders. It’s the same at Easter, same during August. It’s tradition!
Bemused: I know, I know. But it makes no sense.
Bewildered: How so?
Bemused: Well, what’s the purpose of a tender really?
Bewildered: To get the best possible supplier for their business.
Bemused: Exactly! And to do that, you want the best quality bids right?
Bewildered: Yes.
Bemused: But by issuing tenders during any holiday period, you are probably reducing the number of tender proposals you’ll receive overall and/or, you are potentially reducing the quality of the proposals you receive. Therefore, you simply cannot be reviewing or comparing the best possible tenders because of the timing of the tender.
Bewildered: Ah yes but…but but but…business is holiday agnostic! Suppliers, especially big firms like us, should be able to produce the same level of quality irrespective of the month of the year.
Bemused: I get that but it’s just not true in real life, is it? Take August – the world goes on holiday, doesn’t it? Quite naturally there’s less capacity. There’s cover of course – there’s always cover - but that’s for the day job not tenders. And then in December there’s even less capacity. Client relationship managers take clients out on the usual socials, team Christmas parties happen, people taking much needed holidays and they still need to cover the day-to-day requirements. Seasonally agnostic or otherwise, for most businesses, turning around tenders in those periods is far more challenging.
“I’d actually argue clients or their procurement functions are doing their companies a disservice by issuing tenders during holidays periods. If we are managing our existing client relationships as proactively as we should be, then shouldn’t we be talking about the most useful tender timing well in advance?”
“I’d actually argue clients or their procurement functions are doing their companies a disservice by issuing tenders during holidays periods. If we are managing our existing client relationships as proactively as we should be, then shouldn’t we be talking about the most useful tender timing well in advance?”
Bewildered: Yeah, but a client might argue that’s not their problem or they might argue that it’s a good way of “testing” firms’ ability to deliver.
Bemused: It’s so short-sighted though. Look at the tenders we received over Christmas. Most of them are for panel appointments or multi-year contract appointments worth millions of pounds of spend. If you’re the client and that’s the sort of money you’re going to be spending, surely you want to be certain you have the right firms? To do that you need the best set of proposals and you’re reducing the chances of receiving those by putting a tender out over a holiday period. With the best will in the world, some of the tenders they receive will be rushed or won’t have the most compelling or tailored content because people simply were not available to write it. And you and I have both seen situations where clarification questions have gone unanswered because the client’s own people aren’t available because, yes, they’re on leave! I’d actually argue the clients or their procurement functions are doing their companies a disservice by issuing tenders during these periods. Especially it they are putting long term contracts out to tender.
Bewildered: It’s a fair point I guess, but it’s always happened, hasn’t it? Can’t see it changing.
Bemused: Hmm maybe. But actually, if we are managing our existing client relationships as proactively as we should be, then shouldn’t we be talking about the most useful tender timing well in advance? There’ll always be a few tenders that land during holiday periods because of existing contracts coming to an end - but even then, procurement teams could plan their pipeline more proactively, make use of contract extensions – that kind of thing - or just run a more streamlined procurement process that still meets their business needs.
Bewildered: Easier said than done though!
Bemused: Perhaps… but most people are reasonable, aren’t they? It’s a fairly straightforward set of points to set out. And most of those points are in the clients’ interests – it’s not just us moaning about working during holidays. The client gets the best set of options, they create the most competitive environment, and they’ll just get a better result overall. Plus, in being willing to have that conversation with them, it shows the client that we’re confident enough to go up against the best possible tender proposals and still win. Besides making your suppliers drop everything over holiday periods to deliver on a tender hardly screams partnership of equals, does it? Particularly if we are delivering against intense end-of-year client deadlines during that period anyway.
Bewildered: Yeah, that’s true.
Bemused: I was speaking with one of the procurement partners about the same thing last week. The view was that it was a mix of things - some clients just want it off their desk before they go on leave themselves, others don’t have a real appreciation for how much work goes into producing a tender response these days and then there was the cynical viewpoint.
Bewildered: Cynical?
Bemused: Yeah – as in the timing is deliberate. That way, the procurement teams have less to review and/or it’s easier to simply appoint or reappoint who they want.
Bewildered: I’m sure that does happen but given the complexity of the tenders we’ve dealt with this Christmas, it’s probably more the former points than that last one. Most of the tenders needed more than one bid manager to deliver. In hindsight, that one you and Al delivered last week probably needed more than just the two of you to get it over the line in reality.
Bemused: It did. But then people were on holiday, weren’t they?! But we got there.
Bewildered: We always do.
Bemused: Yes, we do! Another drink?
Bewildered: Yes please!