What’s the difference between an acceptable RFP versus a stellar one that engages suppliers to put forward their best possible response?
We’ve dedicated quite a bit of time speaking to the virtues of the RFP process. Indeed, if you’re sourcing any complex good or service, running a Request for Proposal, is a great way to gather and evaluate the data the will ultimately support the decision you make. While running a comprehensive sourcing event makes sense in many scenarios, there are other situations where price is the overriding criterion. If that is the case, and the product/service being sourced is steeped in commodity rather than complexity, you might have a good candidate for a reverse auction.
Topics: Reverse Auctions
The benefits of eSourcing may be clear for buyers, but streamlining the procurement process tends to be met warily by vendors. The apprehension stems from the impression that any level of process automation commoditizes their products and services, and that eSourcing platforms are largely one-sided in favor of the purchaser.
For business-savvy organizations, requests for proposal (RFPs) aren’t just simple procurement tactics. To them, each RFP represents an opportunity to drive value by engaging both future partners and stakeholders.
One of the more common tasks of companies undertaking a new sourcing project is issuing RFPs. Sometimes, the RFP drafting process is viewed as a relatively minor part of the entire project rather than being treated with the same degree of care as other aspects like scoring/evaluating. A thoughtful, well-considered RFP is a key stepping stone on the path to adding to or updating your vendor portfolio. Giving it short shrift, on the other hand, could have the opposite effect and negatively impact the company’s growth, profitability, and efficiency.
For any organization, ensuring that your vendors are able to meet your requirements and expectations is critical. However, this is not just a matter of choosing partners and then passively waiting for them to delight or disappoint: how you manage your vendor relationships can have a major influence on whether they succeed or fail.
Topics: Vendor Management
For a lot of businesses, a well-considered and thoughtfully-implemented eSourcing strategy could offer numerous benefits. Increasing sourcing efficiency, bringing down overhead costs, and improving supplier relationships are just some concrete examples. Given that, it’s almost surprising that businesses are all too willing to overlook these advantages due to certain eSourcing myths.
(Thanks, Charles Le Brun for the great Hercules painting! Greek myths...now, those are interesting.)
Topics: Product Updates
I don’t know whether the concept of “the monster in the closet” is universal, but among my elementary school peers, it certainly seemed that way. Now, as a parent to two elementary school children, I've noticed that the closet monster continues to work dutifully, waving away any talk of retirement. Each night, before bed, my daughter walks over to the closet and presses it shut. She even does this when the closet isn’t open. Around the world, there are thousands — perhaps millions — of children who adhere to the same routine. And for what? To the extent these monsters are real, they are actually quite adorable...or at least that’s what Monsters, Inc. would have us believe. We really have nothing to fear from closet monsters.