Tender Activity

Over the last couple of days, I was able to catch up with our MD, Alan Miles. I took this chance to ask him a few questions about tender.

 

Are incoming tenders increasing or decreasing?

Very much on the increase, there is quite a significant difference between this year and last. January to March in 2018 it was 21, when this year January to March 2019, its been over 50.

 

Why?

Not one simple answer but a number. In last 3 months, the demand for transport has been higher than the supply. Generally, rates have been going up so lots of market testing is increasing, another reason for tender increase is that more hauliers are going bust.

 

Do you take part in all tenders?

No again for a variety of reasons, generally we don’t respond to other logistic providers tenders though always exception to the rule. We would never agree to a 90 or 120 day terms so if that was a showstopper we would withdraw. The business for tender has to fit our operational capability, it would be unlikely that we would bid on a 25 Million tender as our area of specialism is the 500K to 9 Million new business category. Probably currently wouldn’t quote on heavy new seasonal work.

 

How long does it take to respond to a tender?

There is no correct answer, it can be anything from 5 hours to 2 weeks. No point in doing any tender unless you can fully commit to it.

 

How would Maxi respond to tenders?

Very much on an individual basis, We would not try and impose systems as everything is bespoke.

Intellectual input and challenging is key to all tenders. As is questioning, face to face meetings are essential for these to work.

Generally, the people involved in launching tenders are not prepared to put time into it, we would back away from these.