Prepare For A Tender
There’s no use in preparing for tenders if you aren’t invited to tender in the first place. Although most government tenders are open, and publicly notified, often private companies and some government departments, issued ‘restricted tenders’ to only a closed group of businesses or organisations to tender for the contract.
So how do you increase your chances of being invited to tender?
Socialize, provide thought leadership and be front of your client’s mind. You want to have had discussions with the potential client about the services you can provide and how you can assist. Most companies will have an incumbent provider, and when approached by alternative providers such as your company, they will generally say ‘We are going out to tender in a year and will keep you in mind for the tender.’
A good long term approach is what is critical here. Contracts often last two to three years, and you want to be invited to tender when the contract is near expiry. Putting in the hard yards now is critical to getting that opportunity.
Often when companies go out to tender, they look for new suppliers and invite companies to tender based on their perceived position in the marketplace. Your ranking on google, when searching for the product or service you supply, involvement in thought leadership and industry forums, and general exposure in the media and industry magazines are often critical to being invited to tender.
One procurement officer at a large organisation once said:
“I needed a minimum of four businesses to tender. It was a relatively small contract, so I went to google, searched the top four companies and invited them all”
Remember, your business development and sales function is a critical step for your business to be invited to tender and to prepare for a tender.
Defend against the onslaught
On the other hand, you may be the incumbent provider and your contract may be due for completion in a year. It may be a good idea to submit a pre-emptive bid. This is where, six months out, you provide the client with a compelling reason not to go out to tender and re-appoint you for an additional term. Think about the benefits of reappointment, including continuity and existing projects that may extend beyond the term.
Prepare for a tender. The Tender Team can help. Call 0410 448 770.