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The RFP Process Made Simple
The first step in the RFP process is to establish the businesses you wish to consider as potential bidders on your distribution business. You might have, essentially, two options: specialist firms that provide distribution providers to book publishers, and book publishers who deal with distribution for other publishers.
Every of these options has its pluses and minuses. Consider both—the broader you cast your net, the higher your options, as well as your understanding of the range of services available.
Regardless of the players you consider, your RFP must be despatched to a minimal of four bidders, and you should enable ample time (4 months, minimum) for your entire process from RFP creation to ultimate vendor selection.
Protect Your Data
Before you alternate any data, all prospective bidders should be required to sign a non-disclosure agreement (NDA). The NDA shouldn't only include prohibitions towards divulging confidential monetary and operational information provided by either party, however should comprise a clause clearly prohibiting the dialogue of the RFP with unauthorized parties within the writer’s organization. Moving to a third-party distribution enterprise model is a significant step, and until the decision is finalized and a transition plan confirmed, the main points of the hassle should be shared only on a necessity-to-know basis. Past the potential nervousness and disruption to your corporation, your negotiating leverage is diminished in case your effort is affected by data leaks.
Part One: Your Wants and Expectations
An RFP ought to have major sections. Section 1 should contain details about your existing operations and your expectations for what you are promoting over the three to five years following the transition to the third-party provider.
The latter is particularly essential—particularly when you see your group embracing the operational opportunities offered by print-on-demand (POD) and brief-run digital printing. As POD pricing continues to decline to close-commodity ranges, printing technology improves and stock becomes virtual, the calls for on distribution facilities will undergo dramatic change—all of which should translate to reduced working costs for publishers.
Part 1 additionally ought to include, at minimum, quantitative details for your small business’ last full, fiscal 12 months, including:
Number of active clients
Number of invoices and credit memos issued annually
Calendarized gross sales and returns—in both dollars and units
Transaction details, including number of units per bill and number of lines per bill
Number of titles in active backlist
Number of new titles printed annually
Examination copy quantity
Average number of books in storage
Specialised service necessities, together with kitting, worldwide shipments, sticker application, re-jacketing, etc.
Publisher service expectations, including time-in-process necessities for main processes equivalent to income and complimentary-copy order success, returns processing, check-in and availability of incoming stock, etc.
Be Accurate and In-depth
The quality and quantity of the data you provide could have a direct bearing on the accuracy of the bid and the quality of the working relationship between you and your distribution partner. It is a good idea to incorporate a multiyear view of the information listed above that illustrates both historic trends and prospects for the future.
Part Two: Ask the Right Questions
Part 2 of the RFP provides the prospective distribution partners with detailed questions relating to their organizations, the companies you would like them to provide and, in fact, the
related costs.
The RFP should, at minimal, request the next:
• Distributor background, including history, ownership, organization chart, client list and financial statements.
• Operational descriptions. Request a list of critical warehouse, achievement and service processes, and written descriptions including workcirculate diagrams. The operations ought to embrace order intake, pick, pack and ship, customer support, invoicing, credit and collections, and processing of incoming shipments.
• Service-level standards. Request that the distributor provide particulars of service-degree standards (e.g., time in process) for critical enterprise operations.
• Stock management, including physical stock processes, shrink-
control procedures, back-order reporting and management, and audit controls.
• Digital services. A number of major distributors have established strategic alliances with POD specialists, digital asset management service providers and e-book distributors to offer a broader range of services. These services provide the smaller publisher a remarkable opportunity and should be totally explored as part of the RFP process.
• Computer systems, including a whole description of the hardware and enterprise software in place, plans for any upgrades or replacement of the business systems, EDI/ONIX capabilities, shopper info access and reporting capabilities.
• Contingency plans, including
catastrophe-recovery plans for the facility and business systems, and a readiness plan within the event of a pandemic flu outbreak. A surprising number of publishers have asked their suppliers to provide their business continuity plans for managing by way of a flu epidemic.
• Customer references. While references provided by the distributor will only be from glad customers, they're nonetheless valuable and should be thoroughly researched.
• Payment structure. Distributors typically will quote providers on a transaction basis or as a proportion of net sales. The publisher ought to specify the preferred pricing method, but for ease of evaluating prospective prices with historical spending, the share of net sales technique is recommended. In addition to the base costs, the distributor must be asked to provide an in depth list of prices that are not included within the base charge, similar to extra returns charges, extra inventory, personalized reporting fees, etc.
• Transition costs. The move out of your existing distributor to your new provider is not going to be without costs. The distributor needs to be asked to provide an estimate of the transition expenses that shall be billed to you—if any—together with inventory transfer, data upload and every other bills for which the distributor will anticipate to be reimbursed.
• Pattern contract. You should have your legal advisor assessment the distributor’s sample contract.
A Service Indicator
A carefully crafted RFP is essential to effectively evaluating the potential worth of third-party distribution. The time you spend money on it shall be time well spent.
If you have any inquiries pertaining to where by and how to use comprehensive rfp generation, you can speak to us at our web site.