News Alert - Tendering - Are you overlooking potential business opportunities?

Tendering is common practice for businesses supplying goods or services to other businesses and particularly the public sector. These days larger jobs and most government work for supply contracts spread over time can require very specific tendering processes. Before being put off by the time consuming process, or the prospect of missing out to any one of a number of competitors, you might want to consider the upside of participating.

Writing a tender can help clarify your business aims, strengths and weaknesses. The process forces you to be concise about your business’s real competitive advantage. Most tender processes also provide the opportunity for feedback, so you can learn more about how your company stands relative to the competition.  Finally, it provides a means of increasing your company profile with the customer and helps clarify your understanding of their needs and approach to market.

Here are a few key points to consider:

 Think carefully before tendering 

• Get hold of the bid documents early and analyse them carefully.
• Ensure you can match the technical, skill and experience requirements.
• Estimate how much it will cost to prepare a thorough and professional bid.
• Is this work consistent with your strategy and the positioning of your business?
• Estimate the costs of fulfilling the contract and whether there is enough value to justify the investment
• Assess how the contract would affect your other work, staffing and ability to take on other new business.
• Consider the value this of customer to your business. The fact that they require tenders tells you something about the way they buy and any opportunity for a long standing partnership.

A disciplined approach 

Should you decide to proceed don't be overwhelmed by the apparent complexity of the tender process as specialist assistance is available.  There are a few key things to keep in mind. 

• Ensure the tender is compliant in every respect. Non compliance can mean a quick exit from the evaluation process.  
• Ensure the tender is compelling. If there is no competitive advantage you can emphasize, reconsider whether you want to commit the resources to the tender process
• Manage the time aspects of the tender application process to ensure last minute rushes are avoided;
• Liaise with the organization issuing the tender through the whole process to ensure you have everything covered

 Every business is unique and the formal tendering processes vary, but the basic disciplines apply.  DKM can help you determine whether the tender is an appropriate opportunity to pursue and if required, assist in the preparation of a formal tender application.

Please contact your local client service advisor to discuss the benefits of tendering for your business.

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