Sunday, February 15, 2015

Looking at single bid from a business perspective

P1: There are 2 companies that will be able to help us better run this operation as this is their area of expertise.

P2: Lets invite both of the companies to submit a quotation.


1 month later...


P1: Did both of the companies get back to us?

P2: One did and one did not. Company A that got back to us has a track record of running our smaller operations. Their system is not tuned though to run such a large operation but they will fine tune it to fit into our operations at a cost.

P1: Will we be able to afford to accept Company A's proposal?

P2: We have the resources. If we do not accept Company A's proposal, we would have no other choice but to run the operations ourselves. This is not our area of expertise and we also do not have sufficient manpower to undertake such a task. This may result in a lowering of satisfaction for our core business as resources have to be diverted to learn this new area of expertise. We will also need time to understand the present operations which we do not have.

P1: Given that our current vendor will be leaving soon, it's important that someone comes in quickly so that the knowledge can be transferred and the new vendor can hit the ground running. Although this is not our core business, this is still an important aspect of the business as it helps to keep the day to day operations going. Our competitors also do not have knowledge of this area of expertise and I don't see them getting into it as this is not their core business and will divert unnecessary resources to this area.

Let's go with Company A then as the other options will not lead to a better outcome for our customers.

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