How to be successful with your RFP
Ever felt lost when looking for suppliers? So, this post will teach you how an RFP, or Request for Proposal, can help you select the best vendors, paying the right price.
Every business, regardless of the size or maturity phase, can benefit from better technologies and services, when perfecting its procurement processes. Therefore, if you have a project to be executed, an event to organize or the deployment of a new system, begin from the following steps.
What is an RFP and how it makes your business more efficient.
In 1979, Harvard Business Review published for the first time a framework called Porter’s Five Forces. Created by Michael E. Porter, academic at Harvard University, it became a classic and a mandatory tool for strategists and planners. It evaluates how competitive your business can be, based on the following 5 factors:
Notice that, out of 5 forces, 2 involve Bargaining Power. So, according to that, we can conclude that some 40% of your business competitiveness comes from the quality of deals you close.
And a multi-vendor acquisition process increases both the bargaining power and purchasing capacities of your company. For that, we got a very well-known tool, called RFP.
An RFP, or Request for Proposal, is nothing else then a document that you’ll send to several vendors, requesting them to submit their proposals for the product or service you’re interested.
An RFP should contain as much information as possible. Thus, suppliers can use their creativity to provide their best solution to your company.
Therefore, the elaboration of an RFP is key to ensure procurement efficiency. It has to follow a methodology common to project management, using specific techniques and requirements analysis.
How to send RFPs to vendors and compare proposals
1. Understand the complexity of so many vendors and their pricing models
Do you want to see more? Read the full article at Forbes.
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