Krinati Solutions

  What is an RFP? A Request for Proposal (RFP) represents a document or a sourcing stage where proposals are solicited from suppliers or solution providers. The Buyer uses the RFP to state the requirements of the goods or service being procured, the terms and conditions of the engagement, the vendor evaluation criteria, and most importantly the bidding sheet. This bid sheet outlines the quantum of goods or services and suppliers need to quote the price for the same. RFPs apply to all types of spend – indirect, direct and capex. Every sourcing process needs an RFP in some form or other; with varying complexity depending on the nature of the item being sourced. 3 key aspects of an RFP that underline its importance 1. RFPs precede the ‘negotiate & award’ stage and hence need to be managed from that perspective An RFP is followed by a negotiation process after which the business is usually awarded to the most competitive supplier in terms of price, capability and service. In an onl...

  Reason 1: Inviting unqualified suppliers to the auction event Auctions should immaculately be the final step in the negotiation process. Negotiating with suppliers post the auction is a big no-no. Also, qualifying suppliers post the auction has its drawbacks too. Assume the smallest-ranked supplier is disqualified post the transaction. The coming ranked supplier will misdoubt the veracity of the event and will probably be irritated. Reason 2: Poor supplier management Suppliers would much rather fight in a transparent and fair market, where their capabilities can be fairly estimated. They prefer to join the auctions with capable suppliers. They doubt an unclear selection and shortlisting process. Having a simple auction tool is critical to ensure suppliers aren’t discouraged from joining online auctions. Some common supplier queries are the following: Why is the buyer even conducting  reverse auction sourcing ? We’ve serviced them well over the times and delivered good value,...

What is eSourcing? The process of Sourcing involves looking for new suppliers, assessing their capability, comparing their products and their offerings with the demand or with the incumbent supplier’s offering, uniting with all suppliers to receive marketable bids, researching the bids, and negotiating for the optimum price & capability mix. Depending on the strategic nature of the goods or service being sourced, some stages of the sourcing process assume more importance, say brainstorming sessions to decide on cost reduction regulators, inputs from manufacturing and quality teams on issues faced and framing an approach that addresses them. eSourcing platform  helps to digitalize the entire Sourcing process through an online platform that’s penetrated by both the buying team and the suppliers. eSourcing result generally delivers 3 functionalities viz. 1. Request for Information( RFI) A questionnaire that suppliers respond to. Given the strategic nature of the sourced ...

  What is eSourcing? The process of Sourcing involves finding new suppliers, evaluating their capability, comparing their products and offerings with the requirement or with the incumbent supplier’s offering, collaborating with all suppliers to receive commercial bids, analyzing the bids, and negotiating for the optimum price & capability mix. Depending on the strategic nature of the goods or service being sourced, some stages of the sourcing process assume greater prominence, say brainstorming sessions to decide on cost reduction levers, inputs from manufacturing and quality teams on issues faced, and framing an approach that addresses them. eSourcing helps to digitalize the entire Sourcing process through an online platform that is accessed by both the buying team and the suppliers. eSourcing solution  typically delivers 3 functionalities viz.: 1.  Request for Information (RFI ) A questionnaire that suppliers respond to. Given the strategic nature of the sourced cat...

  Procurement teams often face a scenario where they have to compare bids from suppliers that aren’t exactly similar. What do we mean by that? Here are some scenarios where bids received from suppliers aren’t comparable. Shipping costs are incurred by the buyer and are different for each supplier i.e. supplier provides goods ex-works and the buyer is responsible for the transportation of goods. Payment terms are different Quality and esourcing services levels are different Switching costs are incurred with a new supplier Preference is given to incumbent suppliers plus others If we need reverse auctions to be conclusive in themselves, then they cannot be applied in such scenarios. This can be a challenge for companies trying to establish reverse auctions as a norm for supplier negotiations. The way to address this is via Transformed Price bidding. How does that work? The bids placed by suppliers are transformed by applying ‘Price Transformation Factors’, thus normalizing the bids r...

  Reason 1: Inviting unqualified suppliers to the auction event Auctions should ideally be the final step in the negotiation process. Negotiating with suppliers post the auction is a big no-no. Similarly, qualifying suppliers post the auction has its demerits too. Assume the lowest-ranked supplier is disqualified post the auction. The next ranked supplier will doubt the veracity of the event and will likely be peeved. Reason 2: Poor supplier management Suppliers would much rather compete in a transparent and fair market, where their capabilities can be fairly evaluated. They prefer to participate in auctions with similarly capable suppliers. They doubt an unclear selection and shortlisting process. Having a simple auction tool is critical to ensure suppliers aren’t discouraged from participating in online auctions. Some common supplier queries are the following: Why is the buyer even conducting a reverse auction? We have serviced them well over the years and delivered terrific valu...