Procurement’s Guide to Effectively Sourcing HHG Providers

When it comes to sourcing household goods (HHG) services for employee relocation, procurement teams set the goal of identifying the most cost-effective and competent suppliers. However, a company’s relocation program is only as strong as its partnerships. To get the most out of partnering with a HHG provider, alignment to the company’s goals and culture should begin during the request for proposal (RFP) process.

Procurement is better equipped to make a successful strategic partnership decision when they understand their HR colleagues’ mobility process and goals, the HHG provider industry and the information that helps both craft an insightful RFP. Here we’ll examine how procurement leaders can be more successful when sourcing the household goods moving category.

Tell providers how they can help

When a HHG provider is unfamiliar with the requesting company, their relocation policies and goals, it can lead to a cookie-cutter service offering that doesn’t address the company’s current challenges. As a result, rather than providing carefully thought-out, customized solutions or details on how their offering can best elevate an organization’s mobility program and achieve their program goals, household goods movers may be limited to providing a generic introduction to their company.

Help suppliers shape an RFP that addresses your specific goals by addressing issues like:

Procuring HHG is about forming great partnerships

Choosing a HHG provider is about forming great partnerships. You are hiring a mover to manage your greatest asset, your people (along with their families), during one the most stressful events of their lives. Failing to provide caring support to these families can become extremely expensive in terms of failed assignments, reduced employee retention and loss of productivity while an employee deals with the day-to-day process of relocating.

On the other hand, happy productive employees who experience a smooth relocation help companies achieve their business goals and succeed at what they do best as an organization. So what does partnership look like?

A vendor will receive and service orders, but a partner will work hard to understand your company culture and objectives—going above and beyond to help you achieve them via a well-run relocation program. A partner will proactively bring ideas and practices that promote efficiency and contribute to the success of your program.

While most household goods providers offer similar services, focusing on goal alignment and program optimization will help determine which HHG provider is the right fit.

Start with the invitation list

Inviting a company that doesn’t provide the scope of services you need will confuse the evaluation, so begin with clarity around the needs and goals your HR team has for relocating employees, new hires, or executives. Consider these questions to help determine which kind of HHG provider is the best fit.

Thinking through these important questions will help narrow the list down to the HHG providers that fit your ideal partner profile.

Use an RFI process to narrow the group

If there isn’t sufficient time to research each of the HHG providers before an RFP, beginning with an RFI that asks the HHG providers to address essential questions or must-haves can help focus the list.

Sending the RFP to a dozen HHG providers will not only be expensive for them but also for you as you sift through the multitude of responses to your RFP questions. It’s not unusual for companies to issue an RFI to eight to 10 HHG providers, then to select five they considered qualified to respond to the RFP. From that set, they may choose to invite two or three for a best and final presentation.

An RFI can efficiently eliminate any company that doesn’t provide the essential services, coverage, or cultural fit you are looking for in a provider. This step ultimately saves both time and money by letting the sourcing team invest their time with fewer, more viable candidates.

Visit Potential Suppliers

Once you’ve narrowed the potential suppliers, consider visiting them onsite to ensure they can deliver the services they promised in the RFP.

As a HHG provider with over 100 years of experience, Suddath understands the importance of aligning during the RFP process. We will work with your team to create the right solutions for your program goals. To learn more about how we create strong partnerships with our clients, read our blog Ten Tips for Achieving Better Collaboration Across Your Relocation Partner Network.

When it comes to sourcing household goods (HHG) services for employee relocation, procurement teams set the goal of identifying the most cost-effective and competent suppliers. However, a company’s relocation program is only as strong as its partnerships. To get the most out of partnering with a HHG provider, alignment to the company’s goals and culture should begin during the request for proposal (RFP) process.

Procurement is better equipped to make a successful strategic partnership decision when they understand their HR colleagues’ mobility process and goals, the HHG provider industry and the information that helps both craft an insightful RFP. Here we’ll examine how procurement leaders can be more successful when sourcing the household goods moving category.

Tell providers how they can help

When a HHG provider is unfamiliar with the requesting company, their relocation policies and goals, it can lead to a cookie-cutter service offering that doesn’t address the company’s current challenges. As a result, rather than providing carefully thought-out, customized solutions or details on how their offering can best elevate an organization’s mobility program and achieve their program goals, household goods movers may be limited to providing a generic introduction to their company.

Help suppliers shape an RFP that addresses your specific goals by addressing issues like:

Procuring HHG is about forming great partnerships

Choosing a HHG provider is about forming great partnerships. You are hiring a mover to manage your greatest asset, your people (along with their families), during one the most stressful events of their lives. Failing to provide caring support to these families can become extremely expensive in terms of failed assignments, reduced employee retention and loss of productivity while an employee deals with the day-to-day process of relocating.

On the other hand, happy productive employees who experience a smooth relocation help companies achieve their business goals and succeed at what they do best as an organization. So what does partnership look like?

A vendor will receive and service orders, but a partner will work hard to understand your company culture and objectives—going above and beyond to help you achieve them via a well-run relocation program. A partner will proactively bring ideas and practices that promote efficiency and contribute to the success of your program.

While most household goods providers offer similar services, focusing on goal alignment and program optimization will help determine which HHG provider is the right fit.

Start with the invitation list

Inviting a company that doesn’t provide the scope of services you need will confuse the evaluation, so begin with clarity around the needs and goals your HR team has for relocating employees, new hires, or executives. Consider these questions to help determine which kind of HHG provider is the best fit.

Thinking through these important questions will help narrow the list down to the HHG providers that fit your ideal partner profile.

Use an RFI process to narrow the group

If there isn’t sufficient time to research each of the HHG providers before an RFP, beginning with an RFI that asks the HHG providers to address essential questions or must-haves can help focus the list.

Sending the RFP to a dozen HHG providers will not only be expensive for them but also for you as you sift through the multitude of responses to your RFP questions. It’s not unusual for companies to issue an RFI to eight to 10 HHG providers, then to select five they considered qualified to respond to the RFP. From that set, they may choose to invite two or three for a best and final presentation.

An RFI can efficiently eliminate any company that doesn’t provide the essential services, coverage, or cultural fit you are looking for in a provider. This step ultimately saves both time and money by letting the sourcing team invest their time with fewer, more viable candidates.

Visit Potential Suppliers

Once you’ve narrowed the potential suppliers, consider visiting them onsite to ensure they can deliver the services they promised in the RFP.

As a HHG provider with over 100 years of experience, Suddath understands the importance of aligning during the RFP process. We will work with your team to create the right solutions for your program goals. To learn more about how we create strong partnerships with our clients, read our blog Ten Tips for Achieving Better Collaboration Across Your Relocation Partner Network.