In the previous article, we discussed the construction of an effective bid package through the use of effective RFPs (request for proposal). Now it's time to decide who will get a chance to bid on your project.
Pre-Qualification
A common goal of putting a fixture package "out to bid" is to ensure that fixtures of the desired quality are delivered on time at the best possible prices. While bidding can help ensure that the price is competitive, it is the pre-qualification process that will have the biggest impact in ensuring quality fixtures that are delivered on time.
Pre-qualification if probably the single most important component of a successful fixture manufacturing bid process. Pre-qualification helps level the playing field and ensures that only known, qualified vendors submit bids. In a preferred bid situation, you don't have to start from scratch with each new bid. "The store planner generally knows the bidders' pricing, histories, and capabilities," says David Bradshaw, vice president of operations for estorefixture.com, and this prior relationship often opens the door to better negotiating and value engineering.
Specific Criteria for Qualification
When qualifying a fixture manufacturer, there are at least ten areas you should investigate. The first is their experience. What type of projects have they done before? Did they do projects for similar store types? Can you get references?
The size and capabilities of the fixture manufacturer are also important. "I want them to be big enough to handle the account and to have a proven track record," says Kevin Brailsford, vice president of store planning for Blockbuster. Information such as plant locations, square footage, and the number of employees can be found online in NASFM's searchable database at www.nasfm.org or in the print version of the annual NASFM Store Fixture Buyers' Guide.
Ask potential vendors how many years they have been building store fixtures. If they've been around for awhile or at least have a reliable revenue stream, they are more likely to be in business for the completion of the rollout. Michael Lopez, Director�Fixture Development, Design & Construction for K-mart Corp.'s Resource Center, suggests going so far as to find out whether they are bonded. Other experiential criteria include: Are they members of NASFM?* Do they attend NASFM seminars and keep up with industry training, trends, and innovations that might make them more productive fixturing partners? Ask other store planners what their experience has been with them. Was it a good one? Are they flexible and responsive?
Sit down with your potential vendor to explore their knowledge of fixture engineering and manufacturing face-to-face, or at least during an extended telephone conversation. Find out how much of the work they do is done in-house and how much is sub-contracted. Ask them how they will ensure that they do a high-quality job for you. Will they provide onsite inspections after the job has been completed? Are there other value-added services that they can provide?
If your company has specific technical specifications, make sure the vendor understands and can meet them. "Many of the large department store chains have a contractor/ manufacturer pre-qualification form that is submitted on an annual basis," offers Lopez. Not a bad idea, especially if your company has a lot of specific fixturing requirements
Pre-qualifying a vendor for a bid list doesn't mean that new vendors should never be considered; it simply means that the vendor undergoes a review and approval process before being added to the bid list. Many retailers like to try out new vendors on smaller fixturing jobs or specialty requests. While Jim Paddock, senior director of store planning for CompUSA relies on "good working relationships" for larger manufacturing jobs, he often sends smaller projects out to bid. This diversified approach allows him to stay on the leading edge of fixturing with minimal risk.
While qualifying vendors for each bid may seem like a hassle that takes more time than you have, "knowing" your potential vendors helps streamline the bid process, understand and evaluate submitted bids, and reach the desired end product with the minimum time.
*NASFM fixture manufacturers have been in business for at least two years, and pay annual dues.NASFM
|