At Avazent, we adopt a holistic approach to Marketing, Sales, Fulfillment and Billing, which we call Commercial Excellence. Contract Management is a very important piece in this puzzle because, in the end, if you don’t manage your contracts well from proposal development through negotiation and fulfillment, a well run marketing campaign may actually damage your company.
Proposal templates and terms & conditions have to be set up to match local legal requirements and business culture. Even the process for accepting orders or signing contracts must be aligned with how your customers want to purchase products and services.
Defining Your Optimal Commercial Process
Avazent will help you define the optimal commercial process that makes it easy to become your customer. We’ll work with your legal team or outside counsel to ensure that legal requirements are taken into consideration and we’ll even interview your prospective clients to verify that the selling process is aligned with their buying process.
Protecting Your Needs
Avazent’s extensive experience in establishing and managing contracts in Scandinavia will benefit your business from the beginning. English is an accepted contract language among even small industrial companies but there will almost always be a requirement for use of Swedish Law and settlement in the Stockholm Chamber of Commerce.
Scandinavian business culture is in many ways based on trust and even today in a global economy, customers tend to dislike vendors that try to enforce large contract documents and a lot of fine print. This makes it quite a challenge to balance between making it easy for customers to buy and to protect ones interests.
Even companies that are not state or municipality owned opt for official tendering processes simply because they convinced that this is the only way to create a transparent and honest business environment. The thought is very nice, but in reality it does not work very well and millions are spent by companies trying to compete for the work.
The processes adopted by these companies are so square that their employees feel they are forced to “rig” the procurement process in order to get what they want. This means that they have already decided who they are going to buy from when the Request for Proposal is released to vendors.
In order to compete in these tenders one has to get into the buying process early, through personal relationships and inbound marketing, to take control of how the tendering documents define the product needed, requirements, certifications, language, etc.
Design for Change Orders
Any employee of a Scandinavian industrial company will tell you that they absolutely do not want to vendors that bid with a low price and then charge for change orders. The minute later they will award business to the company that they have worked with for many years who also have a past history of bidding low and charging for change orders.
In order to win in this environment you are forced to play by some of the rules and then break some. Finding out the Winning Price is difficult but not impossible. Designing proposals that make it look like your offer is priced very competitively and helps the customer perceive change orders as added value is equally hard but also not impossible.