Do RFP’s Give You The Blues?... · This material was used by Redbridge Debt & Treasury Advisory...
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CONFIDENTIAL - This report is solely for the use of client personnel. No part of it may be circulated, quoted, or reproduced outside the client organization without prior written approval from Redbridge Debt & Treasury Advisory. 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?
Transcript of Do RFP’s Give You The Blues?... · This material was used by Redbridge Debt & Treasury Advisory...
CONFIDENTIAL - This report is solely for the use of client personnel. No part of it may be circulated, quoted, or reproduced outside the client organization without prior written approval from Redbridge Debt & Treasury Advisory.
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
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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
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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
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Standardized Templates
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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
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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
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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
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AFP Service Codes ©
AFP Service Codes
Bank Billable Unit Codes
Description of Service
Volume
Price
Total Fee
Service Fee Information
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Sample Accredited Provider Statement
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AFP Service Code © Structure
AFP Codes are always a 6 digit alphanumeric code
Product Family
Product Group
Service Line
Service Detail
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Evaluate the RFP Results
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Show a cost per item for each section to compare banks
DO RFP’S GIVE YOU THE BLUES?
RFP Grading
Compare RFP Bids
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Show % of each service related to service group and total
DO RFP’S GIVE YOU THE BLUES?
RFP Grading
Compare Pricing Bids
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Does bank negotiate earnings credit rate / hard interest?
DO RFP’S GIVE YOU THE BLUES?
RFP Grading
Compare ECR Bids
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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
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RFP Grading – Compare Qualitative Bids
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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
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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!
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Don’t let an RFP give you the blues!
