The RFP Process Made Simple
The first step in the RFP process is to establish the businesses you want to consider as potential bidders in your distribution business. You might have, essentially, options: specialist firms that provide distribution providers to book publishers, and book publishers who handle distribution for different publishers.
Every of these options has its pluses and minuses. Consider both—the broader you forged your net, the better your options, as well as your understanding of the range of providers available.
Regardless of the players you consider, your RFP must be sent to a minimum of four bidders, and you must permit ample time (four months, minimum) for the complete process from RFP creation to remaining vendor selection.
Protect Your Data
Earlier than you trade any info, all prospective bidders must be required to sign a non-disclosure agreement (NDA). The NDA should not only embrace prohibitions towards divulging confidential financial and operational info provided by either party, but should comprise a clause clearly prohibiting the discussion of the RFP with unauthorized parties within the publisher’s organization. Moving to a third-party distribution business model is a significant step, and until the choice is finalized and a transition 토토 plan confirmed, the main points of the trouble must be shared only on a need-to-know basis. Past the potential nervousness and disruption to your business, your negotiating leverage is diminished if your effort is suffering from info leaks.
Part One: Your Needs and Expectations
An RFP should have two major sections. Part 1 ought to contain information about your current operations and your expectations for your enterprise over the three to 5 years following the transition to the third-party provider.
The latter is particularly essential—especially for those who see your group embracing the operational opportunities introduced by print-on-demand (POD) and quick-run digital printing. As POD pricing continues to decline to near-commodity levels, printing technology improves and stock becomes virtual, the demands on distribution facilities will undergo dramatic change—all of which should translate to reduced working prices for publishers.
Part 1 additionally ought to embrace, at minimal, quantitative details for your online business’ final full, fiscal 12 months, together with:
Number of active prospects
Number of invoices and credit memos issued yearly
Calendarized gross sales and returns—in both dollars and units
Transaction particulars, including number of units per invoice and number of lines per bill
Number of titles in active backlist
Number of new titles published yearly
Examination copy quantity
Common number of books in storage
Specialised service requirements, including kitting, international shipments, sticker application, re-jacketing, etc.
Writer service expectations, including time-in-process requirements for major processes resembling 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 information you provide can have a direct bearing on the accuracy of the bid and the quality of the working relationship between you and your distribution partner. It’s a good suggestion to incorporate a multiyear view of the information listed above that illustrates both historic traits and prospects for the future.
Part Two: Ask the Proper Questions
Part 2 of the RFP provides the prospective distribution partners with detailed questions concerning their organizations, the companies you’d like them to provide and, in fact, the
The RFP should, at minimal, request the following:
• Distributor background, including history, ownership, group chart, shopper list and monetary statements.
• Operational descriptions. Request a list of critical warehouse, fulfillment and service processes, and written descriptions including workcirculation diagrams. The operations ought to include order intake, pick, pack and ship, customer service, invoicing, credit and collections, and processing of incoming shipments.
• Service-degree standards. Request that the distributor provide particulars of service-degree standards (e.g., time in process) for critical business operations.
• Inventory administration, including physical stock processes, shrink-
management procedures, back-order reporting and administration, and audit controls.
• Digital services. Several main distributors have established strategic alliances with POD specialists, digital asset management service providers and e-book distributors to supply a broader range of services. These providers supply the smaller writer a remarkable opportunity and should be totally explored as part of the RFP process.
• Computer systems, together with a complete description of the hardware and business software in place, plans for any upgrades or replacement of the business systems, EDI/ONIX capabilities, client information access and reporting capabilities.
• Contingency plans, including
catastrophe-recovery plans for the facility and enterprise systems, and a readiness plan within the event of a pandemic flu outbreak. A stunning number of publishers have asked their suppliers to provide their enterprise continuity plans for managing by way of a flu epidemic.
• Buyer references. While references provided by the distributor will only be from happy customers, they are nonetheless valuable and needs to be thoroughly researched.
• Fee structure. Distributors typically will quote companies on a transaction basis or as a share of net sales. The publisher should specify the preferred pricing method, but for ease of evaluating prospective prices with historical spending, the proportion of net sales method is recommended. In addition to the base costs, the distributor ought to be asked to provide a detailed list of prices that are not included within the base price, resembling excess returns prices, extra inventory, customized reporting charges, etc.
• Transition costs. The move out of your current distributor to your new provider will not be without costs. The distributor ought to be asked to provide an estimate of the transition bills that will likely 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.
• Sample contract. It’s best to have your authorized advisor overview the distributor’s sample contract.
A Service Indicator
A careabsolutely crafted RFP is essential to effectively evaluating the potential worth of third-party distribution. The time you put money into it will be time well spent.
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