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Bid GOOD-BYE to bidding inefficiency

The quest to improve capital project proposal productivity by 30% or more - bid management

Overview

Even for the lead company that wins over the competition for a billion-dollar project, the bidding process can be exhausting and risky. As projects have grown in size and complexity, the cost of putting together massive competitive proposals has risen proportionately.

Innovative approaches, however, are demonstrating ways to streamline the time consuming process. New methods anchored in product lifecycle management (PLM) are showing dramatic improvements in productivity and cost reduction. At a time when many megaprojects are being deferred, particularly in the energy industry due to low crude-oil prices, business leaders have an opportunity to step back and rethink the process. The time is right to simplify the process for cost savings, for better-targeted proposals and for landing new work.

DOWNLOAD THE BID GOOD-BYE TO BIDDING INEFFICIENCY PDF [PDF, 209 KB]

Key Findings

The solution is reducing mundane work and improving data accuracy so people have more time to focus on higher-level tasks.

By enabling reuse of past project data, vendor offers and technical specifications, the solution incorporates lessons learned, is able to compress schedules and help companies be aggressive on pricing for future proposals. These capabilities help to explain why, in addition to the dramatic rise in efficiency in the first year, the Siemens Process Industry Oil & Gas business units anticipate further productivity improvements of roughly 5 percent annually, along with greater probability of winning future bids.

"After five months, Oil & Gas Marine Solutions documented a 36 percent reduction in internal costs related to bid management. The division forecasts productivity improvements of roughly 30 percent in the first year."