Benchmarking and RFx Management
Take a pulse on the supply market, understand the value of current supplier partnerships, and discover innovations and other business models available. Choose the right supplier at the right price based on formalized selection criteria and business objectives. By holding supplier partners accountable you can gain a competitive edge, protect your hard work and equity, and improve the overall financial health of your company.
When business performance is critical, choosing suppliers strategically will lead to a competitive advantage in the life sciences sector. Supplier identification, benchmarking, and competitive request for proposal (RFP) management are among the services provided by Nagel Strategies.
Effective benchmarking and RFx management relies on strong partnership with functional leaders, your company’s subject matter experts and budget owners. Internal expectations should be clearly established up front, complete with current challenges and key goals. When you go to market, all communication and questions must be developed thoughtfully and directed to the appropriate suppliers to include both incumbent partners and up-and-coming industry players.
What is benchmarking and RFx Management?
The noun, benchmark, is defined as “something that serves as a standard by which others may be measured or judged.” Formal and informal benchmarking techniques will help raise your confidence that you have healthy expectations and mutually beneficial relationships with suppliers that are fair and transparent.
RFx stands for request for quote (RFQ), request for information (RFI), and request for proposal (RFP). All are methods for benchmarking and creating a competitive environment for suppliers to earn your business. Nagel Strategies will help you determine which is the most appropriate based on unique conditions in the supplier market and your company’s immediate business objectives.
How it Works
Scoping and Goal Setting
Once the need is identified, typically following a formal spend and opportunity analysis, Nagel Strategies will consult directly with the functional leader or subject matter expert who has the closest relationship and knowledge of the supplier market. Nagel Strategies will present its own preliminary research and recommendations in order to scope an appropriate benchmarking or RFx project. Typically a benchmarking exercise can be accomplished in a short timeframe with a lean team.
Developing the Selection Team
When a request for proposal (RFP) is warranted, it is critical to identify an executive sponsor and selection team willing and able to take on the responsibility of developing formalized criteria and participating in final supplier selection.
During the kickoff, we will agree on a timeline and supplier participants, as well as review the RFx and, perhaps most importantly, the selection criteria.
Down-Selection and Proposal Analysis
Depending on scope and goals, an RFx might include a “down-selection” exercise to determine finalists. If appropriate, finalist suppliers may be invited to present an oral presentation to the Selection Team. Regardless of the scope chosen, Nagel Strategies will conduct a comprehensive analysis of supplier proposals and work with the appropriate functional leader to package and present to the selection team.
During the important selection phase, Nagel Strategies will guide the team to apply pre-determined criteria to proposals and facilitate a final selection. This process is also designed to develop a sound negotiation strategy to manage risks and ensure results toward stated goals.
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