The RFP Process Made Simple
Step one within the RFP process is to establish the companies you wish to consider as potential bidders on your distribution business. You might have, essentially, two options: specialist firms that provide distribution companies to book publishers, and book publishers who handle distribution for other publishers.
Every of those options has its pluses and minuses. Consider each—the broader you cast your net, the better your options, as well as your understanding of the range of companies available.
Regardless of the players you consider, your RFP should be despatched to a minimal of 4 bidders, and you should permit ample time (4 months, minimal) for the complete process from RFP creation to last vendor selection.
Protect Your Data
Earlier than you change any information, all prospective bidders must be required to sign a non-disclosure agreement (NDA). The NDA shouldn’t only include prohibitions against divulging confidential financial and operational data provided by either party, however ought to comprise a clause clearly prohibiting the discussion of the RFP with unauthorized parties within the writer’s organization. Moving to a third-party distribution business model is a significant step, and till the choice is finalized and a transition plan confirmed, the main points of the hassle must be shared only on a necessity-to-know basis. Beyond the potential anxiety and disruption to your enterprise, your negotiating leverage is diminished if your effort is suffering from info leaks.
Part One: Your Wants and Expectations
An RFP should have two major sections. Section 1 ought to include information about your current 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 important—particularly in the event you see your group embracing the operational opportunities presented by print-on-demand (POD) and quick-run digital printing. As POD pricing continues to decline to near-commodity levels, printing technology improves and inventory becomes virtual, the demands 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 minimal, quantitative details for your online business’ last full, fiscal yr, including:
Number of active prospects
Number of invoices and credit memos issued yearly
Calendarized gross sales and returns—in each dollars and units
Transaction particulars, together with number of units per invoice and number of lines per bill
Number of titles in active backlist
Number of new titles printed yearly
Examination copy volume
Common number of books in storage
Specialized service necessities, together with kitting, worldwide shipments, sticker application, re-jacketing, etc.
Publisher service expectations, including time-in-process requirements for main processes corresponding to income and complimentary-copy order achievement, returns processing, check-in and availability of incoming inventory, etc.
Be Accurate and In-depth
The quality and quantity of the knowledge you provide may have a direct bearing on the accuracy of the bid and the quality of the working relationship between you and your distribution 카지노 슬롯사이트 partner. It is a good suggestion to include a multiyear view of the data listed above that illustrates both historic developments and prospects for the future.
Part Two: Ask the Right Questions
Part 2 of the RFP provides the prospective distribution partners with detailed questions regarding their organizations, the services you would like them to provide and, after all, the
The RFP ought to, at minimal, request the following:
• Distributor background, including history, ownership, group chart, client list and financial statements.
• Operational descriptions. Request a list of critical warehouse, success and repair processes, and written descriptions including workmovement diagrams. The operations should embody 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 details of service-stage standards (e.g., time in process) for critical enterprise operations.
• Stock management, together with physical inventory processes, shrink-
management procedures, back-order reporting and management, and audit controls.
• Digital services. A number of main distributors have established strategic alliances with POD specialists, digital asset administration service providers and e-book distributors to supply a broader range of services. These services supply the smaller writer a remarkable opportunity and ought to be fully explored as part of the RFP process.
• Computer systems, together with a complete description of the hardware and enterprise software in place, plans for any upgrades or replacement of the enterprise systems, EDI/ONIX capabilities, shopper data access and reporting capabilities.
• Contingency plans, together with
disaster-recovery plans for the facility and business systems, and a readiness plan in the occasion of a pandemic flu outbreak. A stunning number of publishers have asked their suppliers to provide their business continuity plans for managing by a flu epidemic.
• Customer references. While references provided by the distributor will only be from glad clients, they’re nonetheless valuable and should be completely researched.
• Payment structure. Distributors typically will quote providers on a transaction basis or as a percentage of net sales. The writer ought to specify the desirered pricing technique, but for ease of comparing prospective prices with historical spending, the percentage of net sales technique is recommended. In addition to the bottom costs, the distributor needs to be asked to provide an in depth list of prices that are not included within the base fee, corresponding to excess returns prices, excess stock, customized reporting fees, etc.
• Transition costs. The move from your present distributor to your new provider will not be without costs. The distributor ought 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 expenses for which the distributor will count on to be reimbursed.
• Pattern contract. It’s best to have your legal advisor assessment the distributor’s pattern contract.
A Service Indicator
A careabsolutely crafted RFP is essential to effectively evaluating the potential value of third-party distribution. The time you spend money on it shall be time well spent.
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