Vendor Selection

Consolidation of plans and an independent, objective vendor search that included a thorough study of the costs and capabilities of retirement plan providers helped this Company reduce overall retirement plan expenses.

Background
An automotive equipment supplier with several divisions that each maintained its own retirement plan and recordkeepers wanted to consolidate its retirement programs and administrative functions.

Challenge
Following consolidation of plan design provisions, the Company was faced with selecting one recordkeeper to administer the consolidated plan. Most of the divisions were dissatisfied with their current recordkeeper and were interested in finding a new vendor that could better meet the needs of all the divisions and their employees. Additionally, the Company hoped to enhance financial performance through consolidation of the plans and vendor selection.

Solution
The supplier engaged Findley Davies to assist with consolidating the retirement plans and finding a single recordkeeper. In addition to being familiar with the plan design capabilities of the Findley Davies' retirement consultants, the automotive supplier knew the Findley Davies' team had an online tool that could streamline the process of searching for a provider that met their needs. The vendor profiling tool, lmpetro.com™, enables clients to use the internet to gather responses to a Request for Proposal (RFP) without being inundated with marketing and sales materials from numerous vendors. Additionally, the website can be tailored to fit the specific needs and objectives of the client.

Through lmpetro.com™, each vendor responds to a series of multiple choice and open-ended questions which are used to populate its "profile." Profiles are evaluated based on the Company's specific search criteria and scored electronically. Profiles are retained in the system, requiring only updates for each future search in which the vendor may be asked to participate. Results are analyzed through a series of reports. Reporting is flexible and robust, with the ability to compare specific vendors, specific responses, or to change the weighting of the categories. The scoring results and a summary of vendor responses gathered through lmpetro.com™ were presented to the client.

Results
Through lmpetro.com™, 12 vendors submitted responses and Findley Davies worked with the supplier to select finalists. The thorough analysis completed by our consultants included a detailed review of pricing for services and provided an "apples to apples" comparison of vendors' fees.

Based on the information gathered, the supplier chose three finalists. Findley Davies facilitated the finalist presentations - setting the agenda and script for each meeting. The client selected a new recordkeeper and was very satisfied with the lmpetro.com™ process. The search process was completed over approximately three months from the initial planning meeting to the final phase of selecting the vendor and contract negotiation. The consolidation of the plans and vendor selection has reduced overall retirement plan expenses and the amount of human capital needed to administer multiple plans.

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