Obtaining and Selecting Suppliers' / Contractors' offers, Quotations, Tenders and Proposals

Introduction

This training course will show how to best obtain and select offers from suppliers. This is perhaps one of the most important dimensions of cost-effective purchasing.

It covers issues such as how many suppliers to invite to offer / RFQ / tender / proposal depending on the type of purchase. It also deals with what type of process to apply in different situations and how formal this process needs to be (e.g. formal tendering as opposed to requesting quotations). The art of evaluating the offers / RFQ / tender / proposal will also be explained.. inclusive of the formal tendering process in more detail.

Objectives

Training Methodology

The training methodology is interactive with group exercises and is suitable for all employees involved in functions management. The pace and level of the training workshop is customized to the understanding of the delegates. Ongoing back-up and support is available after the training on request to the supplier, and the training course is also available for in-house presentation as well as for “Competency Transfer”.

Who Should Attend?

Course Outline

Unit 1: Introduction

Unit Summary

This Unit provides a brief introduction to the concepts and definitions used in developing solutions to obtaining and selecting offers.

Learning Objectives

• Describe the key terms related to obtaining offers.
• List three prerequisites to obtaining offers 

Unit Contents

• Getting it right
• The terms and what they mean
• What to do before you start
• What this training course covers

Unit 2: the Framework for Obtaining and Selecting Offers

Unit Summary

This Unit explores when the different strategies and bases for evaluation are appropriate with reference to the Supply-Positioning model.

Learning Objectives

• Describe the three main dimensions that influence how you obtain and select supplier’s offer.
• Outline the main stages of the process to be followed in this connection.
•  Describe the main approaches to apply when obtaining and selecting offers for each of the four categories of purchase items: routine, leverage, bottleneck and critical.

 Unit Contents

• Introduction
• Alternative approaches to obtaining and selecting offers
• Overview of the process
• The link to supply strategy
• Routine items
•  Leverage items
• 2.7 Bottleneck items
• Critical items
• Conclusion

Unit 3: Method of Obtaining Offers

Unit Summary

This Unit describes four main approaches to obtaining and selecting offers: informal, enquiry-reply, formal tendering and using e-marketplaces. It describes when to use each of these approaches, and why and also outlines how to implement them.

Learning Objectives

• Describe the following four methods of obtaining offers:
• Informal process
• Enquiry-quotation process
• Formal tendering process
• Using electronic marketplaces
•  Select the most appropriate method to apply for each of your purchases.

Unit Contents

• Introduction
• The informal approach
• The enquiry-quotation approach
• Formal tendering
• Using e-market places to obtain offers
• Conclusion

Unit 4: Criteria to Evaluate Offers

Unit Summary

The different methods and criteria that can be used to evaluate supplier’s offers are described in this Unit. Guidance is given on when each approach is appropriate. These include:

• Lowest price
• Lowest total cost of ownership
• Weighted scoring models
• Value judgment

Learning Objectives

• Describe the key features of the offer evaluation process. 
• Apply the four main methods of evaluating offers and their corresponding criteria: lowest price, lowest total cost of ownership, weighted scoring and value judgment. 

Unit Contents

• Introduction
• Lowest price
• Lowest total cost of ownership (TCO)
• Weighted scoring
• Value of judgment
• Choosing a basis of evaluation
• Conclusion

Unit 5: How Many Suppliers?

Unit Summary

This Unit looks at the question of how many suppliers to invite to offer. It outlines which options are available, and the reasons for choosing one or another. It also describes how to identify those suppliers to be invited to offer.

Learning Objectives

• Describe the reasons for inviting one, a few or all potential suppliers to make offers. 
• Identify some of the main issues to consider when determining which suppliers to invite.

Unit Contents

• Introduction
• Options and reasons
• Which suppliers to approach?

Unit 6: The process of Obtaining & Selecting Offers

Unit Summary

This Unit outlines how to prepare the invitation to offer and communicate it to suppliers. It also considers what to do when receiving and evaluating offers, awarding the contact and debriefing suppliers that have not been selected. The Unit also points out some ways in which the process can be adequately recorded (e.g. for audit purposes) and streamlined (to reduce costs and lead-times).

Learning Objectives

• Describe the main elements of an invitation to suppliers to present offers.
• Outline the ways that an invitation can be communicated to suppliers.
• Describe the steps and actions involved in receiving and evaluating offers, and the main issues to consider in this regard. 
• Describe how an offer can be accepted and a contract awarded.
• Define the issues to take into account regarding the debriefing of unsuccessful suppliers.

Unit Contents

• Introduction
• Preparing the invitation to offer
• Communicating your invitations to suppliers
• Receiving and evaluating the offers
• Negotiating
• Accepting offers and awarding the contact
• Advising and debriefing unsuccessful suppliers
• Keeping a record of the process
• Streamlining the process of obtaining offers