Top Strategies for Successful Early Engagement with Automation Suppliers

In recent years, demand for automation soared, return rates on RFPs (Requests for Proposals) dropped, and lead times increased. Only the best-prepared project tenders got a look in. As supply chain and logistics consultants, we are well aware of this challenge. We help customers like Royal Mail, Asda, and Greggs lead the way with cutting-edge technology. We often assist clients in navigating the market and preparing briefs before approaching suppliers.

Consultant Ian Bartholomew comments: “When demand was rising, lead times increased, and we noticed some companies making shotgun decisions based on solution delivery times rather than application suitability”.

Warehouse Automation – The Market Now

While the market may not be as white-hot now, there is still an acute labour shortage. Customer behaviours that shifted during the pandemic are not returning to ‘normal,’ which are both critical drivers in continuing demand for automation. Warehouse automation suppliers make significant investments in resources – time and money – every time they respond to an RFP. The market may have calmed, but when the cost of replying to an RFP is six figures, suppliers will likely be picky about which RFPs they choose to invest in and respond .

How to Prepare a Solid Tender for Warehouse Automation Suppliers

Often, tenders released to the marketplace lack sufficient detail to return robust design and costs. The most significant omissions from tender documents usually include key data and design assumptions about the operation’s performance. This can impact timelines because system integrators and technology suppliers must commit time and resources to explore business operating principles. Poor tenders like this are treated as low priority or, even worse, can result in no bids being submitted. System integrators often work with a full order book and are highly selective in where they spend their business development time.

To get noticed and improve response rates on tenders, tenders must contain quality information, can be responded to quickly, and fit in with what is being offered within the market rather than relying on bespoke solution design. Your organisation will succeed more if you are ready to engage the market with a clear set of business requirements.

Invest in Resources and Communication

Depending on the complexity of your project, a wide range of different business functions may feed into a business requirements document or tender. Internal engagement and collaboration across your organisation, including your IT teams, operational divisions, and finance stakeholders, are key. Recruiting or working with an independent consultancy would be beneficial if you lack the internal resources or experience to engage the market. This will give you access to industry-specific knowledge to understand where your competitors stand, what broader technologies are available, and insight into the strengths or weaknesses of the suppliers in the market.

It will also allow you to create a more comprehensive business case for an end-to-end solution design that the right supplier can deliver to speed up the entire contract design and implementation process. If you don’t do this, it will likely impact timelines and block opportunities to progress with technology solutions within your business. To ensure suppliers will invest their time and resources in replying to your RFP, here are our top three tips for enhancing engagement and maximising responses to accelerate your automation project and increase your return on investment.

1. Focus on Your Requirements

Each company has a different driving factor towards their project. Knowledge of this can help you select the best and most appropriate suppliers to compete for the work. Some companies will have a return on investment highest on the agenda, while others may be keen to reduce capital expenditure, even if this means a slower payback. Therefore, giving potential suppliers real-life business performance data is critical to reflect key trading periods, off-peak activity, and stock holding information. Being explicit about this could impact your project goals and the proposed solution.

2. Remember, Time is of the Essence

Suppliers are primarily time poor. Winning a tender can take six months of blood, sweat, and tears. Often, this equates to a six-figure sum of investment towards winning a new project. So, it’s no wonder that suppliers have become more selective and strategic when choosing which RFPs to respond to. The most enticing RFPs will be those where the investment in time can be most easily controlled. Giving detailed specifications and a thorough assessment of data and design requirements will reduce the time needed to pass questions between the client and the suppliers. The suppliers will be able to tell that detailed preparation has taken place and risks have been mitigated. The project is likely to run more smoothly and meet the lead times. This makes a project far more attractive.

3. Understand the Supplier

Not only is this a great form of flattery, but it will help you choose the suppliers who are the best fit for your project. Unsurprisingly, it will speed engagement naturally as a result. Engaging an automation expert with deep expertise and knowledge of the suppliers’ landscape will save you time and money – ensuring your project is accepted and expedited. Gaining a complete understanding of the suppliers, their growth plans, and the direction they are taking their business will benefit your project. Not only does it help to satisfy your project requirements better, it will also ensure robust responses to your RFP and maximise your chances of a well-executed project. This means being on budget, on time, and meeting contractual deliverables.

Key Takeaways

• Ensure you have unbiased, experienced automation resources before engaging the market.
• Identify your key drivers for the project and the key performance criteria.
• Invest time and expertise to prepare a detailed specification.
• Select suppliers that best match your needs and theirs. You’re not ready to engage if you can’t justify who you’re engaging with and why.

You can find more information on our Warehouse Automation Services here or contact us.