"What are some of the key settings and considerations that I would need to know when creating RFPs?"
"RFPs are more involved than RFIs as they include the ability to collect pricing and can have more competitive rule structures. There are several standard templates available for RFPs with their main differences being the capacity type, competitiveness and pricing strategy.
Let's talk about what RFPs are and why you would use one."
WHAT IS AN RFP?
A request for proposal (RFP) is an event that collects both information about suppliers' qualifications as well as pricing information.
It serves to gather competitive market and pricing information by specifying what the customer is looking for and describes each evaluation criterion on which a vendor's proposal will be assessed.
Although pricing information can be collected, price might not be the most important factor in the selection.
WHY USE AN RFP?
RFPs can be helpful when:
- Obtaining first-round pricing in preparation for an auction and help eliminate non-competitive suppliers.
Sourcing non-standard items.
- The RFP allows for additional information gathering and facilitates easier comparisons of non-standard products such as software or cleaning services.
Comparing a variety of possible options.
Project owners can add terms to address all negotiable aspects of a certain deal (e.g. contract terms and specifications), and easily compare different proposals.
In closed RFPs, suppliers can respond without fear of revealing anything to competitors, since the information will be seen only by the project owner and team members.
Allowing suppliers to differentiate themselves through bidding process by highlighting their:
Product differences - If the project owner is sourcing a non-standard product or service, suppliers can include information about why their product/service is superior.
Services offered/provided - Project owners can request for information about associated services offered by suppliers related to the RFP, where suppliers can upsell or market additional services or goods.