Often vendors and companies have very different ideas about the needs and goals of a business. This makes it difficult for both vendors and companies to achieve desirable savings. There remains a list of intangible benefits but nothing substantial in terms of cost reductions or productivity gains.
The RFP process allows vendors and companies to get on the same page and identify product requirements in detail. It acts as the basis for detailed vendor comparisons in terms of functional and investment requirements. Moreover, through the RFP process, organizations can create benchmarks that can be later used to determine the success of any project.
At SpendEdge, we understand that a poor RFP process often results in numerous questions and unsatisfactory results for companies. Therefore, in this blog, our team of experts has highlighted the critical steps involved in the RFP process.
Want to know how an effective RFP process can help your organization to identify the best-qualified vendor? Get in touch with our experts today!
How does an RFP process work?
Although the RFP process is quite complex and time-consuming, with the right approach, companies can speed up the process and manage RFPs. Here, we are breaking down the RFP process in some simple steps:
Preparing request for proposal document
The RFP document is crafted to inform vendors about the problems the issuer wants to address. Therefore, it is crucial to make RFP requirements clear and easily understandable to gain precise responses from vendors.
A request for proposal document ideally includes four elements that provide vendors with the information they need to deliver effective responses. It also includes questions for vendors and other industry related aspects to understand if the vendor truly understands the challenges or not.
Still wondering what to include in your request for a proposal document?Request a free proposal and know how our experts can guide your organization to improve the RFP process.
Assessing clients and shortlisting them
In an RFP process, it is important for vendors to tailor their RFP responses according to the issuer’s needs. For an effective RFP response, vendors require detailed insights about the client’s site, questionnaire, market space, and competitors. The more in-depth information they will have, the more effectively they can address the RFP issuer’s key concerns.
Once the vendors submit their proposals, RFP issuer can start shortlisting vendors. They can adopt a comprehensive approach to analyze RFP response and identify differentiating factors for comparison of vendors.
Completing evaluation and signing contract
This is the last and most critical step of the RFP process. By this time, the RFP issuer has a proper understanding of vendors and knows which vendor will be best suited for the company. Now, the RFP issuer needs to send the RFP database to their legal department and draft a statement of work (SOW) from responses gathered. The SOW should be precisely crafted as it defines how the RFP issuer and selected vendor will work together in the future.