Trainer continues providing background information regarding tenders and the tendering process: Reasons businesses issue RFTs is an increasing trend for companies to ‘tender out’ their work. This may be because they: Believe the tendering process is the best and most effective way to obtain high quality products and service at best price Find tenders often develop new ideas and/or concepts for product and service provision as part of the offer made by those responding to RFTs Want to identify what different providers have to offer Are obliged by internal company requirements (or mandatory legislated obligations) to submit all contracts over a certain value to a compulsory, competitive tendering process. Slide Slide No Trainer Trainer continues providing background information regarding tenders and the tendering process: Reasons businesses respond to RFTs Not all businesses seek out RFTs If your business seeks to respond to RFTs it will be because they want to: Increase market share Expand the business Increase revenue Raise profit Enhance business viability Grow the reputation and market presence of the business. Slide Slide No Trainer Notes Trainer continues providing background information regarding tenders and the tendering process: Types of catering contracts
Slide No Trainer Notes Trainer presents considerations when analysing costs: Ensure all fixed costs have been identified for all of the outcomes/deliverables required under the tender – it is vital all of these are named because failure to do can have a major, negative impact on the viability/profitability of the tender Calculate the actual costs attaching to each identified fixed cost – this can mean: Obtaining quotations Sourcing options/alternatives Undertaking price comparisons Negotiating with suppliers and providers. Determine how the costs will be defrayed when the tender pricing/costing is done – for example: Will you identify each cost and list the cost at ‘full cost recovery’ (see slides) value only? Will you add a percentage to each fixed cost? So you show a profit/return on each cost Will you integrate all fixed costs into the pricing/costing for other tendered items? For example, assimilating all these costs into: A project management fee The individual selling for products Costing for ‘food’ and/or ‘beverages’ as defined by the RFT. Slide Slide No Trainer Notes Trainer presents options for analysing variable Identifying all items which can be classified as variable costs Quantifying volumes for each identified item at a series of production/service points – for example: Maximum volume/s Average volume/s Minimum volume/s. This is particularly important where the RFT documentation requires you to provide costing on a ‘per meal’ basis (also referred to as ‘activity per service’) as it allows you to tender at three different volume rates: Determining base costs/prices for each identified variable cost Conducting CVP analysis Considering required selling prices – as necessary for the RFT or as required to generate sales or profit required by your application.
Slide Slide No Trainer Notes Trainer continues presenting options for analysing variable Developing a comprehensive and relevant cost pricing strategy for each food and beverage items to be provided – determining relationship of costs to (as appropriate) selling prices for items or ‘per meal’ revenue earned under the contract Undertaking CBA for the project – or for individual components of the tender Identifying the nature/extent of deals which can be obtained from suppliers, such as: Quantity discounts at different purchase volumes Bonus offers – for buying certain amounts Better terms of trade – such as more time to pay or increased discount for prompt payment Identifying alternative uses for ingredients/products which may not be used at the client’s site – for example: Some suppliers are prepared to take back (and credit you with) items you are unable to use If you operate another venue/catering business, you may be able to transfer perishables to this other venue and use them there Considering budget implications – for allocation of funds to budgets Predicting contribution margins for products and elements – as part of analysis Determining these individual costs as a percentage of expected revenue/sales. Class Activity – Guest Speaker Trainer arranges for administration/accounting/bookkeeping person from a local venue to attend and: Discuss their role in preparing a tender submission Give examples of manipulating/calculating figures when analysing costing elements for a tender application Identify examples of fixed and variable costs Describe analysis of cost elements when developing a tender submission. Slide No Trainer Notes Trainer explains concept of ‘full cost recovery’: Where you are asked to provide certain services to support the tender you may elect to do this on a ‘full cost recovery’ basis This means you only charge the client the same amount you paid to obtain the service from a third party
Slide No Trainer Notes Trainer identifies for trainees the Performance Criteria for this Element, as listed on the Class Activity – General Discussion Trainer a general class discussion on preparing submissions by asking questions such as: Why are submissions prepared for ‘management’? What ‘resources’ will be outlines in the submission? What items will be costed in the tender? What operational details might be outlines in the submission? What are examples of ‘products and outcomes’ that may be outlined in the submission? Slide Slide No Trainer Trainer indicates the standard submission options for a response to an RFT are: A written submission in hard-copy and/or electronic form: Hand-written submissions are not acceptable – they need to be typed/computer-generated Signatures will need to be attached at certain points – such as a signature from the CEO formally making the contained in the submission Verbal presentation – you may be required to make a verbal presentation in support of your application: As part of the initial submission If your submission is – note some clients use a two-stage process where your application (if it is not rejected outright) may be ‘long-listed’, in the first instance – and, if successful at this stage, then will be ‘short-listed’ Combination of written submission and verbal presentation – to the client or their representative. Class Activity – RFT references Trainer illustrates the options listed on the slide with reference to sample RFTs. Slide Slide No Trainer Notes