Sales might be an old profession but it remains the foundation of every successful business. Without it, there won’t be profits, salaries, big buildings or even, the brand.
But to sell consistently, companies need to understand the psychology behind buying and selling. They must also apply a proven, dependable set of processes and skills. One of such skills is the bid and tender management.
Bid and tender management exists because of a formalized process that buyers use to hire contractors in certain sectors; for example, in the oil and gas industry.
How Does It Work?
This formal process is started by the company or the individual who needs the service. To do this, they might contact a contractor who they’ve worked with before (this is called single sourcing) and ask them to submit a proposal (also known as a bid or tender). The proposal tells the intending buyer how the oil and gas company intends to deliver the new job along with the required budget, manpower, and the resources.
Or they might choose a more competitive bidding process. In this type, the client starts by announcing that a project is open. Interested oil and gas companies can then follow up by applying to progress through several competitive stages until the most persuasive applicant wins the contract.
The bid, as it is used in this situation, can refer to both the activity of bidding and the official document which is submitted during the bidding process to show the client that an oil and gas company is the best option for the project. Other names for the document are proposal and tender.
Bids are usually costly to prepare. And costly to lose, since they’re tied to the company’s sales: if done effectively, the company will get the project which means millions of dollars in profit. But if it is done badly on a regular basis, the company won’t survive for long.
That’s why oil and gas companies prioritize the management of their bidding process.
Managing the bidding process is a strategic task which involves managing the search for new business opportunities and overseeing the successful submission and the reception of bids within the allotted time.
This task is usually handled by a bid manager.
How Oil And Gas Companies Grow Their Profits With Efficient Bid And Tender Management Skills.
Successful bidding usually means new projects. And new projects mean more sales. But more sales doesn’t always equal more profit.
Because the company that’s bidding could waste a lot of resources – for example, time, money and manpower – during the bidding process. This can affect the revenue that’s gotten from the project.
However, oil and gas companies avoid this risk by developing a proven and efficient bid and tender management method (or system). The system also helps to reduce the number of ineffective bids.
For a bid system to be efficient, it must be better than the competitor’s, accommodate input from other experts on the content of each bid and it must be refined with feedback from past bids, both the failed and successful ones.
Other benefits of efficient bidding are company growth, competitive advantage and increased publicity.
The Bid Manager
This is the professional who prepares the bid, coordinates the activities related to the bidding process and submits the bid.
The performance of each bid depends on his skills and competence.
Bid managers usually bring the following skills to the process:
- A firm grasp of the bid and tender process.
- Market insights to discover lucrative bidding opportunities.
- Managerial skills since he must liaise with top company executives to create the bid.
- A marketing and sales mindset when creating content for the bid. The content must focus on the buyer’s needs.
- Technical competence to ensure that the bid meets the client’s quality requirements.
I want to become a bid and tender manager.
You can start your career as a bid and tender manager by enrolling at the Globat Oil and Gas Skills course on bid and tender management. You’ll get an intensive introduction to bid and tender management; and practical hands-on training.
If you have any questions, please contact us at email@example.com or visit our website at www.globatskills.com to learn more.
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