RFP/Bid Preparation.
Do you simply call around and take what is offered? Do you test the waters periodically to make sure that your long-term vendor/suppliers are cost competitive?

If not, you are wasting money. It’s that simple. After switching to a competitive bid process, it is not uncommon for an organization to see 20% savings, consistently.

There are many reasons for this, and the size of your organization is one. Nevertheless, organizations who engage in competitive bidding, whenever practical, reap the financial and service benefits of the competition.

How many 20%’s are you not addressing? At the end of the day, you may not be living up to your organization’s full potential by simply accepting a proposal for reasons other than need, which is a waste of resources.

It should be noted that saving 20% doesn’t necessarily mean accepting the lowest bid. We know that the lowest bid is not always the best bid. Factors such as service, quality, speed, etc., must also be considered. That is why a careful examination of the bidding process is so important. What, exactly, is your need? What, exactly, is being provided? Chances are, you are paying for services you are not using.

©2002 M. B. Taylor Associates, LLC