Project Selection Process S170

S170 - Vendor Conference

DEFINITION

Bring all recipients of the formal Invitation to Tender together at the client site involving presentations, a site tour (if appropriate) and closed session questions with each vendor.

SUMMARY

The objectives of running a Vendor Conference are:

• to help to improve the quality of the vendors’ proposals and
• to improve control over the selection process to ensure that timescales are adhered to.

Vendors have the opportunity to visit the environment and get a feel for the way the company operates.  Client management can demonstrate to the vendors the importance it attaches to the system being selected and the attractiveness of the company as an on-going user.  The consultant with the client selection team can begin to assess the quality of the vendor's team.

Even if vendors have already been dealing with the client before and may even have visited the site their attendance should be encouraged; this is an opportunity to benchmark the facts and impressions they may have received earlier before the project came under the control of the Application Software Implementation Selection  process.

Each Vendor should be given a set time to ask questions of the client project team in private.  They should have had time enough to formulate a series of specific questions from the Invitation to Tender and these can be answered by the project team.

After the conference, the consultant can share any points of clarification via a duplicate letter to each vendor in order to "keep the playing field level".

PATH PLANNING GUIDANCE

This process is optional but recommended.  It does not take much effort to plan or execute yet it adds a lot of value to the selection process and is highly effective.

DEPENDENCIES

Prerequisites (Finish-Start):

• Agree priority of requirements and key module weightings (S070, S090, S100)
• Issue Invitation to Tender (S080)

Dependent procedures (Finish-Start):

• Receipt of Tenders (S190)

RECEIVABLES

• Project plan information / presentation
• System highlights / do-wells information from the Requirements Segment

DELIVERABLES

• Clarification letter to vendors (if required)
• Vendor Conference debrief meeting and informal report

TOOLS

• Examples: Vendor Conference agenda
• Examples: Vendor Conference Follow-up letter

DETAILED DESCRIPTION OF TASKS

In general, it is vital that a vendor conference sells the project effectively to the vendor.  A prime purpose is to convince each vendor that the project is really going to go forward and be successful; negative messages are counterproductive and in some cases could even result in potential suppliers making a “no-bid” response.

When a vendor conference is not therefore appropriate:

• when the client is not capable of making a clear presentation of the business and system objectives; this may be the case with small clients,
• when there is lack of senior management commitment to the project.

Preparation

• Make the date of the Vendor Conference known to the vendors before issuing the ITT and confirm the arrangement in the ITT covering letter.
• Follow-up or elicit confirmation of Vendor Conference attendance along with usual verification of ITT receipt.
• Be explicit about the maximum number of representatives each vendor may bring; two or three is a reasonable number - client accommodation may dictate this.
• Arrange to have available a vacant office(s) or work space for the use of vendors who are waiting their turn for detailed question sessions.

Detail of recommended approach

With more than four vendors duplicate sessions may be run morning and afternoon.  With more than eight it may be necessary to run some activities in parallel.  Consistency in the message given to the vendors is important but it may be possible to run parallel closed question sessions provided that the selection project team members have the right level of knowledge and any inconsistencies are clarified in the follow-up letters.

Timetabling the Vendor Conference to minimise waiting time can be difficult; a professional and well-timed day will convey the right message.

Have the most senior user available, ideally the CEO, to introduce the conference and to present the outline business case.  This serves to demonstrate client commitment and may even be the first real participation the CEO has in the project; it may, therefore, also act as fast-track education for the CEO.

If appropriate,  get the client project manager to present the section on the project background, project organisation structure and selection timetable.

The best candidate to present the system “do-wells” may be the consultant or "expert" user.  This part of the presentation should focus quite carefully on the "show-stopper" functions required and any other key system issues that, in the experience of the consultant, could be misunderstood by the potential vendors.

"Site tours" are best conducted by user group members.  Again plan the tour, make it relevant, visit the areas of the operation that require system functionality which will differentiate the vendors later in the selection process.