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This material was used by Redbridge Debt & Treasury Advisory during an oral presentation. It is not a complete record of the discussion.

Do RFP’s Give You The Blues?

2DO RFP’S GIVE YOU THE BLUES?

Agenda

Motivation For An RFP

How To Select Potential Providers

Management And Department Buy-in

Decision Process

Structuring An RFP

Evaluating The RFP Results

Summary

3DO RFP’S GIVE YOU THE BLUES?

Motivation For An RFP

4DO RFP’S GIVE YOU THE BLUES?

What motivated you to conduct an RFP?

Cost Reduction/Management

Required by Management

Acquisitions

Share of the Wallet

Operational Efficiencies

Outgrowing Current Provider

5DO RFP’S GIVE YOU THE BLUES?

How To Select Potential

Providers

6DO RFP’S GIVE YOU THE BLUES?

How do you determine the providers to invite to the RFP?

Only Credit Providers

Only Existing Providers

Open to All

Do You Consider 3rd Parties?

7DO RFP’S GIVE YOU THE BLUES?

Decision Process

8DO RFP’S GIVE YOU THE BLUES?

How do you gain support from other departments for your RFP?

Socialize (Internal & External)

Project Sponsor

Define Opportunity & Expectations

Kickoff Meeting

Clear Project Plan

9DO RFP’S GIVE YOU THE BLUES?

STAKEHOLDERS INVOLVED

INTERNAL PARTNERS EXTERNAL PARTNERS

Service

Experience /

Cash Room

Team

Accounting /

Treasury

Information

Technology

HR / Payroll /

Legal

Banking PartnersArmored

Couriers

Cash Management Tool

Provider

Internal Stakeholders Involved

10DO RFP’S GIVE YOU THE BLUES?

RFP Project Planner Period Highlight: # Plan Actual % Complete Actual (beyond plan) % Complete (beyond plan)

ACTIVITY PERIODS

FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

Distribute RFP

Award Business

Begin realizing benefits

Implement

Socialize

Prepare

Distribute

Decision

SOCIALIZE

PREPARE

DISTRIBUTE

DECISION

IMPLEMENT

RFP Project Planner

11DO RFP’S GIVE YOU THE BLUES?

Management and

Department Buy-In

12DO RFP’S GIVE YOU THE BLUES?

How much did you involve others in the data gathering and decision making process?

Drafting the RFP

Identifying Pain Points and Wish Lists

Attending Bank Presentations

13DO RFP’S GIVE YOU THE BLUES?

Structuring an RFP

14DO RFP’S GIVE YOU THE BLUES?

How do you structure an RFP to be as efficient as possible?

Do you involve Procurement?

Conduct Peer Calls

Use Templates

Form Project Team

Yes/No Questions

Provide Clear Requirement Documents

Be Thoughtful about Sections

Issue & Resolutions Log

15DO RFP’S GIVE YOU THE BLUES?

Standardized Templates

16DO RFP’S GIVE YOU THE BLUES?

Volumes & Division

What volumes should you use in your template?

Historical?

Projected Future?

How would you divide the business?

Division/Company

Disbursements vs Collections

Volumes

Division

17DO RFP’S GIVE YOU THE BLUES?

AFP Service Codes ©

Since 1986, AFP Services Codes© have been recognized as

the standard for identifying balances and charges that

appear on account analysis statements and in responding to

RFPs

Updated in 1997, 2004, 2008, 2013

Assigned by bank product managers

Web search engine available with 2008 version

Global service codes published in 2012

18DO RFP’S GIVE YOU THE BLUES?

AFP Service Codes ©

Domestic or International

Monthly Maintenance or Per-Item

Processing, Exception, Reporting

Delivery Method

Automated

Transmission, Internet, AutoFax

Manual

Paper/Fax/Phone

Major Classifications within the AFP Service Codes

19DO RFP’S GIVE YOU THE BLUES?

AFP Service Codes ©

AFP Service Codes

Bank Billable Unit Codes

Description of Service

Volume

Price

Total Fee

Service Fee Information

20DO RFP’S GIVE YOU THE BLUES?

Sample Accredited Provider Statement

21DO RFP’S GIVE YOU THE BLUES?

AFP Service Code © Structure

AFP Codes are always a 6 digit alphanumeric code

Product Family

Product Group

Service Line

Service Detail

22DO RFP’S GIVE YOU THE BLUES?

Evaluate the RFP Results

23

Show a cost per item for each section to compare banks

DO RFP’S GIVE YOU THE BLUES?

RFP Grading

Compare RFP Bids

24

Show % of each service related to service group and total

DO RFP’S GIVE YOU THE BLUES?

RFP Grading

Compare Pricing Bids

25

Does bank negotiate earnings credit rate / hard interest?

DO RFP’S GIVE YOU THE BLUES?

RFP Grading

Compare ECR Bids

26

Due Diligence – a Yes doesn’t

always mean Yes!

Prices on proforma but not in pricing

schedule

Prices on pricing schedule but not

proforma

New services appear after

implementation that are not reflected

on either

DO RFP’S GIVE YOU THE BLUES?

Importance of Due Diligence

27DO RFP’S GIVE YOU THE BLUES?

RFP Grading – Compare Qualitative Bids

28

Banks will almost always

reduce cost in a second

round

Allows further clarification

of terms and the ability to

narrow the pool.

DO RFP’S GIVE YOU THE BLUES?

The Importance of a Second Round

29DO RFP’S GIVE YOU THE BLUES?

Summary

Gain internal support and participation

Recognize success together as an organization!

Organize RFP for the best analysis and least amount of work

Do your due diligence

Limit and eliminate surprises!

30DO RFP’S GIVE YOU THE BLUES?

Don’t let an RFP give you the blues!