Page 274 - Writing Winning Business Proposals

Paramount’s Proposal Letter to the ABC Company 265

Proposal to ABC Company page - 12
February 29, 2XXX

without first determining such improvement opportunities could result in
unnecessary capital investment.

We will ensure that ABC is making the most effective use of existing manufactur-
ing resources. Specifically, we will:

◉ document current equipment and space utilization
◉ determine opportunities to better utilize current equipment and space and to
improve material flow
◉ determine opportunities for utilizing new equipment technology
◉ specify which products or components, if any, should be made in-house or
purchased from suppliers
The modified, effective base of production resources coupled with the confirmed
market forecast will enable the engagement team to develop an accurate and
credible projection of future resource requirements. At this point, the joint ABC/
Paramount engagement team will have a sound basis for identifying, evaluating,
and selecting the most viable option or options to provide these requirements.

Task 3: Define Manufacturing Facility Options to
Provide Required Resources
Once we know how much additional space and equipment are required, we will
identify the possible manufacturing options that will provide these additional
resources. Accordingly, we will develop and analyze various options and determine
which configuration of facilities best meets your objectives. Specifically, we will:
◉ determine expansion potential at the current facility
◉ specify potential factory roles and locations for increasing capacity
As a result of completing this task, we will have narrowed the field from the
possible to the probable, the better to be able to scrutinize the remaining options
and to choose the most appropriate.

Task 4: Select the Most Appropriate Option
Using ABC’s distribution model and Paramount’s proprietary models for assessing
expansion options, the joint engagement team will evaluate thoroughly each
potential expansion option and then select the one most appropriate. Although
the range of options will have been narrowed, those remaining will quite likely be
diverse. Therefore, we will work with ABC management to develop both quantitative