In today's fast-paced business environment, efficiency is key. When procuring services or products, the traditional Request for Proposal (RFP) process can often be cumbersome and time-consuming for both the Owner…
In order to manage procuring supplies and services, a purchasing professional utilizes various forms. The three most commonly used forms are the Request for Proposal (RFP), Request for Quotation (RFQ),…
7 key points to review when preparing a RFP
Most of your business associates are likely aware of the term RFP and what it stands for. They might not understand how it is used by purchasing professionals, however they should know it is a formal procurement document sent out to solicit responses from other businesses or suppliers.
The RFP document is a Request for Proposal form and a company would typically opt to send it out to three or more vendors or suppliers. Before we cover other areas to review when preparing a RFP let’s touch on Vendors for a moment. When the RFP is issued, it is expected the vendors or suppliers you decide to select or include in the bid are qualified to generate a desired response to the Buyer’s needs.
A qualified vendor is often:
1. A supplier you have done business with before
2. One you recently pre-qualified using a formal process
3. They come recommended from other business associates or
4. Have references you can check
Always narrow your vendor list down to supplier’s you know will submit a quality product and service. It is not considered a best practice to submit requests to vendors which may provide a sub-standard service or poor quality product.
Much is at stake when making a selection (more…)