Your ability to attract and engage quality bids is dependent on how well you begin your procurement process.
After all, the search for the right supplier isn’t simply just about cost-savings. It’s important to establish a balance between budget and quality, and assure that you will be forging a partnership that mutually benefits you and the supplier.
In many cases, achieving this starts with crafting a high-quality RFP (request for proposals): when your RFP is sub-optimal, the whole sourcing process is likely to deliver sub-optimal results.
With that in mind, it’s crucial that your RFP contains all the important elements you require. Browse through the checklist below before sending out your next RFP.
1. Statement of Purpose
Your RFP should offer a brief explanation detailing exactly what you need, your purpose for sending the RFP, and what you hope to gain.
It should also include an outline of your target timeframe. Are you seeking a long-term supplier or a partner for a one-time project?
This section should be able to set clear expectations regarding your needs.
Provide comprehensive background about your company. Your prospective bidders are of course expected to do their own research, but giving them an introduction will point them in the right direction.
Try to provide as much information that you believe will be relevant to your supplier’s ability to deliver a great proposal.
Map out how long the entire process will take by providing a timeline. Establish closing dates for submitting the intention to bid and be specific about deadlines.
Make sure you provide a feasible timeline for your suppliers. Give them enough time to craft their responses so you receive quality proposals.
Were you able to articulate a clear set of goals in your RFP? Spelling it out clearly for your potential suppliers helps them focus on delivering what you actually need. Think about what your priorities are and what you’re working towards.
Explain the deliverables you expect to receive from each proposal. Typically, this should include items such as the plan of action, timelines, and ways forward specific to your project.
6. Pricing Template
While not necessarily a requirement, best practice shows that providing potential suppliers with a pre-designed pricing format where they can detail their pricing structure makes it easier to compare one bidder from another. It also makes it easier to ensure that there are no requirements that were left out.
7. Terms and Conditions
Comprehensive RFPs typically provide a pro-forma contract that details pertinent information about the working engagement. Typically, this includes details such as payment terms, penalties, incentives, breach of contract rules, and dispute resolutions.
8. Criteria for Evaluation
A critical element of the RFP is anchored on knowing exactly how you will make your decisions when it comes to choosing the winning bid. Suppliers have to know what you are prioritizing. For example, are you putting more weight on budget over timelines? Or is price negotiable as long as they are able to ensure quality of service?
9. Wish List
Make sure that your wish list is separate from your non-negotiables. You may want certain elements that would be great to have in the proposal, but aren’t necessarily needed. These could also be items that you’re not quite sure will fit your budget. Regardless of what you want to include, if it’s not a priority or a must-have, be sure to include it as a separate list.
While there isn’t a cut-and-dried way to construct an RFP, ensuring that the above items are included when sending it will raise your chances of receiving high quality, thoughtfully prepared proposals.
Take advantage of Vendorful’s eSourcing platform and find out how we can help you write better RFPs. Get in touch with us today.