Managing the RFP Process: The Client Perspective

1. Global Mobility Summit New York – October 4, 2010 Managing the RFP Process:The Client Perspective

2. The Decision to Bid • Large corporations recognize the important role their Global Mobility department plays in supporting strategic objectives • Relocation services are a strategic investment • Procuring relocation services requires a partnership between a company’s Relocation and Purchasing departments • Some Reasons to go out to bid include: • Replace non-performing supplier • Reduce spend • Accommodate request from management • Examine a supplier who is a new client

3. Procurement Life Cycle • Plan • Purchase • Implement • Deliver

4. Outsourced Relocation Program • Global Mobility supports the company’s strategic global objectives • Relocation vendor remains closely tethered to the Global Mobility department • Supporting the assignees and their families • Able to scale as the assignee population swings up and down Strategic Global Objectives Global Mobility Corporation Assignee Population Relocation Vendor

5. PLAN: Define Expectations • Understand the flaws in the current model • Define objectives and end goal • Build a diverse project team with a variety of perspectives and skills • Establish clear expectations with internal stakeholders

6. PLAN: Define Expectations value What your management requested What you know is right for your program

7. PLAN: RFP Development To be developed for the suppliers: • Summary of program’s historic/current/future trends, program design and policy elements • List of services and reporting requirements (similar to the Statement of Work) • Detailed pricing grid To be developed for the RFP team: • Project plan with timeline and milestones • Roles and responsibilities for each team member • Existing supplier performance results • Team scorecard

8. PLAN: RFP Development What NOT to do: When some, but not all, key requirements are articulated in the RFP

9. PLAN: Market Assessment • Conduct an RFI to better understand the market and align expectations • Formulate your supplier selection criteria • Identify the list of potential qualified providers • Understand how each may or may not meet your organization’s expectations • Invite potential candidates for informal on-site meetings • Discover additional services that would be applicable but were not considered in the original request

10. PLAN: Market Assessment What NOT to do: How the results of market investigations improved the incomplete specifications When some, but not all, key requirements are articulated in the RFP

11. PLAN: Market Assessment • After obtaining market insights, reassess service requirements • Update and more precisely define the service requirements in the RFP questions • Gain final buy-in from Purchasing • Communicate RFP intentions and invite selected suppliers

12. PLAN: Market Assessment What NOT to do: How the results of market investigations improved the specifications When some, but not all, key requirements are articulated in the RFP How the RFP was hastily re-written

13. PURCHASE: RFP Launch • Require supplier to sign Non-Disclosure Agreement (NDA) indicating an intent to bid • Communicate timeline and expectations • Provide training on e-Sourcing tool • Forward program summary and RFP questions

14. PURCHASE: RFP Responses What the short listed vendors promised to deliver: Supplier #2 Supplier #3 Supplier #1

15. PURCHASE: Evaluation & Selection Evaluate the suppliers based on: • Ability to meet the core requirements • Performance guarantees • Financial stability • Experience • Total move volume per year (international and domestic) • Diverse suite of services • Client portfolio • Reference checks

16. PURCHASE: Evaluation & Selection • Narrow the list down to the top 2-3 suppliers • Conduct internet fee negotiations • Visit supplier sites • Invite the finalists to conduct best and final presentations • Gain strong support from the project team on the final decision because you will need the team’s support during implementation

17. PURCHASE: Contract Development • Include the companies standard T&Cs in all RFPs • Ensures company’s important terms are always covered • Enables procurement to become experts in negotiating purchases regardless of goods and services being purchased • The Statement of Work (SOW) for relocation services is typically more comprehensive than a “widget” contract • Provide the company’s SOW template for the supplier to complete the first draft, OR • Global Mobility composes the first draft as a starting point • The contract negotiation period should follow pre-established timelines

18. PURCHASE: Contract Development Elements to include in a SOW for relocation services: • Definitions • Services description • Pricing • Invoicing • Implementation plan • Confidentiality • Personnel • Reports • Policy • Process change protocol • Performance measures • Systems definition • Liability/Indemnification • Termination

19. PURCHASE: Contract Development Ensure your supplier does not agree to something that cannot be delivered Avoid dragging out contract negotiations for a LONG period of time Contractual oversights cause costly and irreparable damage.

20. DELIVER: Implementation • Implementation timeline, project team, milestones and budget must be established in advance • Project team should include Subject Matter Experts, stakeholders, new and former service providers • Assign team members to develop the various process flows • Develop a comprehensive training plan • HR, line managers, service providers, relocation coordinators • Communications are crucial to success • Provide frequenst updates on program changes and implementation progress • Distribute updated policies, templates, and procedure manuals • Send notifications and updates to 3rd party providers • Send a broad communication to employees impacted by change; followed by individual communications to explain personal impact • Report outcome and savings to upper management

21. DELIVER: Supplier Management • Establish short and long term goals and objectives • Focus on critical key metrics and actionable items • Develop visual metrics such as scorecards, dashboards, Service Level Agreements and reporting • Conduct on-going and annual reviews and business planning meetings • Survey key stakeholders and users of the program • Service providers should provide the company explanations and recommendations for overcoming unacceptable variances • Utilize initial survey results as a baseline and develop ways to reward and motivate the supplier to encourage on-going improvement

22. CONCLUSION Steps to effective procurement: • Plan • Set clear expectations, involve the right people, ensure access to the right skills • Purchase • Understand the market, scope the contract, finalize the purchasing decision • Implement • Map processes, provide training and communicate internally and externally • Deliver • Track vendor performance against established metrics, conduct partnership meetings to continually improve the program

23. UPCOMING TRAINING SESSIONS: Reducing Global Mobility spend during an economic downturn Rebuilding a Global Mobility program after a company bankruptcy