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 that 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 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