Overwhelming RFQ Backlog - Strategies on Being Selective & Bidding Quickly
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  1. #1
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    Default Overwhelming RFQ Backlog - Strategies on Being Selective & Bidding Quickly

    Well, I find myself in the favorable position of having too much work to bid on, but not enough resources to get to it all. In light of all that is going on, I was expecting that the work would start to dry up but the opposite has occurred. The workload for bidding has increased. I'm talking hundreds of part numbers due in a couple weeks time with only 1-2 people working it. Sometimes, I feel that we "over-engineer" the quote and need to simplify our quoting process. It is a dilemma of accuracy, quantity, & time - pick two.

    So...

    How do you select the correct work to bid on when everything is within your manufacturing capability? Do you simply pass on opportunities because you understand your capacity to bid and realize you cannot realistically get to it?

    How do you make your bidding process more efficient? Do you go out for quote on everything or throw the dart at the proverbial pricing target board?

    Let the sarcastic and serious responses commence. All are appreciated as I am very thankful for what this forum has to offer.

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    Random thoughts- If you're going to skimp on quoting, quote high, as you'll certainly miss something. And that something is never in your favor. What can you make the most money on with the least trouble? Put your efforts there. It's incredibly difficult for people to say no, but if you don't, you'll bury yourself in problems.

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    You can always share the load with less-busy nearby shops ... just saying ...



    Regards.

    Mike

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    Quote Originally Posted by Finegrain View Post
    You can always share the load with less-busy nearby shops ... just saying ...



    Regards.

    Mike
    He said QUOTE volume, not actual orders. We're experiencing that right now... Twice the quotes coming in, half the parts going out. It's almost like purchasing agents working from home can't spend half the day chatting and just use all that extra time to spam everyone for pricing.

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    We are in the same boat. Was slow 6 months ago and now we are overwhelmed. The process we use is to bid only to our core customers, and core industries.

    We make parts for all industries, but our core is aerospace, semiconductor, and defense. When we see a quote for agriculture, we no quote and let them know why. Our industries are not as cost sensitive so we can get away with throwing together quotes quickly, so we quote everything we can.

    My boss has a great line that echos Conrad: I would rather lose a job because I was too high than too low.

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    start looking into the details of quoting, customers, parts, payment history start finding out who your best and worst customers are. STOP spending time on the low fruit and grow with the high hanging work. work smarter not harder. here's the first question how many quotes on average do you send out and how many of these do you end up winning? gotta start no quoting or quoting high more often to start weeding out the herd. there are ways to start winning more business with less work you have to start understanding the details behind the process and WHO your shop really is...

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    Quote Originally Posted by ducesrwld View Post
    start looking into the details of quoting, customers, parts, payment history start finding out who your best and worst customers are. STOP spending time on the low fruit and grow with the high hanging work. work smarter not harder. here's the first question how many quotes on average do you send out and how many of these do you end up winning? gotta start no quoting or quoting high more often to start weeding out the herd. there are ways to start winning more business with less work you have to start understanding the details behind the process and WHO your shop really is...

    and give 110% percent and put the puck in the net

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  12. #8
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    From my experience, first you have to know your customers. Who is actually going to send you profitable work.
    Who is going to be the least hassle? Nothing worse than dealing with a customer who is sending change orders and asking for those priced.
    Who is going to pay you on time, this includes acceptance time. If you are having to borrow money to pay for the cost of the job your profit went out the door.
    I have my A list customers.
    If they send out a rfq thats a actual job someone is going to get.
    They pay there bills with in 30 days of invoice.
    They send regular work to the shop on a ongoing basis.
    My B list is the above but pay 30-60 days.
    The rest just go in the trash.
    If I can't make money I sure don't want to just wear out my machines and I don't need the practice.

    It's worked for me for 40+ years


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