Issue Supplier RFPs to Save Time and Decrease Bottom-Line Costs By Karen Watson, CMP, Director of Meeting & Event Operations Conferon’s Meeting & Event Managers estimate that 40% of their time planning a convention is spent on supplier-related activities. That’s understandable when you consider the steps involved to: Research what suppliers to consider Generate and issue the RFP Review and compare the proposals Present recommendations Negotiate contracts Facilitate pre-planning and on-site needs Reconcile invoices When you multiply these steps by the number of vendors involved in each meeting (audiovisual, transportation, photographer, security, floral, general service contractor, keynote speaker, companion tours, etc.), it’s amazing that there is any time left to determine program content, select speakers, and manage the myriad of other details for your meeting. So when more and more hotels have in-house DMCs and florists and most facilities have in-house audiovisual companies, why not just go with the flow? Why even issue an RFP? Well, the in-house provider may indeed be perfect for your needs if you have an event with relatively simple requirements. But if your meeting is more complex, you may be selling yourself or your event short, while increasing your bottom-line costs. Just by issuing an RFP, you are forcing suppliers to respond competitively. Give the in-house provider an opportunity to bid—but do issue an RFP! So what makes up a good RFP (or an ITT—Invitation to Tender—the term used for many international meetings)? It should be a structured document that precisely describes what you need, when you need it and how and when you will arrive at your decision. It should spell out what you need (must have) vs. would like (nice to have). Make sure that mandatory requirements are clearly distinguished from areas where suppliers can be creative. Don’t make it a fishing expedition. If budget is an issue then you should provide it. Give adequate time for suppliers to respond. The quality of the proposal received will be a direct result of the quality of the RFP you issue. When issuing RFPs, consider signing multi-year or multi-meeting agreements. While it may seem like a risk to make a long-term commitment, the increased value of your business provides leverage to negotiate better pricing and concessions from your selected supplier. Most of us have considered multi-year agreements for audiovisual or expo services and while it’s not an everyday occurrence, Terry Upton, Executive Vice President of USA Hosts, Ltd., says that more associations are considering multi-year agreements when DMCs have offices in multiple cities. With multi-year contracts, negotiating an “out” clause can protect you from risk. For instance, Conferon’s contract language protects you in the case of poor performance or where your meeting requirements have changed and the supplier can no longer handle your needs. Here are some ways that Conferon is working to improve its own supplier RFP process: Through the use of our supplier database, which contains over 1350 vendors along with qualitative notes from our staff. Through updated standard RFPs for audiovisual, expo, transportation and DMCs. We are also developing additional standard RFPs for services such as signage, entertainment, production and security. By developing strategic partnerships with select suppliers that guarantee commissionable pricing that is equal to, or better than customers could receive by contracting directly with the supplier. By creating standardized contracts with key suppliers that will protect the best interests of our clients and allow negotiations to focus on pricing and concessions. For more information on how Conferon can assist you with supplier RFPs, contact your Meeting & Event Manager, call 330-425-8333 to speak with Susan Murphy, Supplier Marketing Manager, or visit our website at www.conferon.com.