The RFP is dead*

*well, not dead, but is becoming increasingly irrelevant

The RFP struggles to deliver innovation.

Would the iPhone have succeeded if it started with an RFP?

An RFP locks in a solution that may become irrelevant.

An RFP struggles to keep pace with rapid market shifts

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Market prices are declining by 10%-

15% per year

An RFP only delivers savings every 3-5 years.

Automation is accelerating delivery mechanisms – and reducing cost structures

7.6 Hours

43-minutes

Legacy Operations (2012)

Automated Operations (2014)

2-Year Transformation Delivers • 73% reduction in FTE• 50% cost reduction

Supplier’s solution works, but there is no incentive to keep pace with market advances

Negotiating mid-term corrections is difficult without leverage.

But savvy Suppliers know they are at-risk of losing out-of-market business….

…and are increasingly willing to write-down business before it’s poached by competitors

Interests are aligned to lower Client Price by lowering Supplier Costs.

Fine Line has a collaborative process to continuously improve Cost and Price.

People

ProcessTools

Price

• Global Placement• Correct FTE count• Skill level

• Efficient Client inputs• Interfaces• Regulatory requirements

• Market Targets• Project vs BAU• TCO

• E-Bond• Automation• Investments

…both Client and Supplier must be receptive to evolutionary opportunities

Fine Line uses Carrots versus Sticks to drive behavior with a scorecard tool.

If Supplier declines participation, traditional procurement methods are used (e.g. RFP)

People Process ToolsPrice/ Value

Overall

Vendor A 3 3 2 3

Vendor B 4 2 5 3

Vendor C 4 4 5 4

Vendor D 4 3 4 3

Vendor E 3 2 3 2

Vendor F 2 3 3 2

Silver

Bronze

Silver

Silver

Gold

Bronze

Susceptible to RFP

Fine Line Innovation Scorecard

The Payoff is significant. Client savings range to over 30% over next 4-years

$325

$242

$200

$225

$250

$275

$300

$325

$350

2013 2014 2015 2016 2017 2018

$M

M

Current Rates

….and the RFP cycle is averted or diminished

Fine Line’s 16-week Start-Up Timeline

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6

Gather Data

Develop Targets

Customize Framework

Adaptive Contracting

Ongoing Negotiation & Optimization

4-Month Start-Up Period Collaborative process with Client and Vendor(s)

Lifecycle Management

Decision: Continue/Expand program?

www.FineLineAdvisors.comInfo@finelineadvisors.com

Sourcing Advisory Business Services• Strategy & Assessment• Business Planning• Business Requirements/RFP• Supplier Negotiations• Supplier Termination Planning• Transition Planning