The whole point of using third party suppliers is to allow companies to focus on what they are good at, leaving other tasks to the specialists in their own areas; and for that reason, many companies have a tendency to let their eyes off the ball when they offload work to their suppliers.

Companies want to focus on what they are good at and leave the rest to their “trusted” suppliers. Supplier failure can be due to a multitude of reasons; financial, operational, technology, disasters, fraud and the list can go on. But in the majority of cases, the underlying cause is usually a result of one of three failures which every organization has control over:

1. Selecting the wrong supplier (due diligence failure)
2. Selecting the right supplier but not being able to integrate them (project failure)
3. Selecting the right supplier but not managing them appropriately (vendor management failure)

The negotiating and contracting phase establishes the basis and tone for a successful project. It is the time when expectations are established, the terms of engagement are framed, desired outcomes are outlined, and the tone is set for a successful relationship. A poorly conceived and executed process for negotiating and contracting is a precursur to misunderstandings, scope creep, and budget erosion, and yields products that fall short in content and schedule, no matter how capable the technical team. Conversely, a well conceived contracting process enables the project to proceed with confidence and clarity.

Clear and fortright communication is critical for setting expectations and defining deliverables in managing professional services. Negotiating is focused on cost and conditions of service while contracting establishes the legal roadmap for executing and delivering that service. The contracting process at its best ensures that a contract does not impede the ability of the parties to fulfill their contractual obligations. The negotiating and contracting phase is the time when decisions are made regarding how much control is executed, how much risk is maintained or transferred, and the extent to which innovation can be encouraged and rewarded.

An RFQ is usually the first step in submitting a request for proposal (RFP). These two documents are similar as they provide details of the project or services required, but RFQs generally ask for a more comprehensive price quote. Also, businesses usually design RFQs for generic products in which the quantity needed is known, and RFPs are for unique, niche projects where quantities and specifications are unknown.

RFPs outline the bidding process and contract terms, and provide guidance on how bids should be formatted and presented. They are generally reserved for complex projects. These requests specify the nature of the project and the evaluation criteria disclosing how proposals are graded. Requests may include a statement of work, describing tasks to be performed by the winning bidder and a timeline for providing finished work. They also include information on the issuing organization and its line of business.

Door-to-door delivery services might have multiple interpretations and different schools of thought, but it makes fulfillment and logistics a much easier task for you. If you haven’t yet, reach out to us and start delivering your products door-to-door soon! It will make your business much more sorted, and customers super satisfied. 

Portfolio management requires the ability to weigh strengths and weaknesses, opportunities and threats across the full spectrum of investments. The choices involve trade-offs, from debt versus equity to domestic versus international and growth versus safety.