What is an RFP?
Companies may issue an RFP, or a request for proposal, when choosing a vendor or service provider to work with. This document outlines project specifics such as scope and price and asks potential vendors to come back with a bid for the work. Multiple bids are then compared to help determine the best choice.
When your company has a new (often large) project, or one that’s more complex and requires a bit of outsourcing, an RFP can help you get the job done right the first time.
The RFP doc becomes a way for you to quickly uncover the strengths and weaknesses of potential vendors in relation to your project without having to spend too much of your time hunting for them yourself.
“The future of RFPs” – How technology, transparency and collaboration will change the way we connect. Let’s understand Why and what does the future of RFPs look like?
Of course, answer to this depends on who is responding to this question. Some believe there’s no possibility of fixing the RFP process. And this section of people including those who are actively involved in the Procurement Digitalization will also leave behind automating RFP process and instead focus on Procurement Operations which is comparatively easy to handle. However, few others believe that the process can evolve to create a better experience for everyone. Regardless of where you stand, we are pretty sure we can all agree that it’s time for a change.
Challenges for procurement teams issuing RFPs.
Gathering accurate business requirements
Customizing the RFP questions and providing context
Managing vendor communications
Providing transparency to all vendor participants
Narrowing down to best-fit vendors for each RFP
Encouraging vendors to participate
Evaluating and scoring proposals manually
Managing and tracking ongoing vendor updates
Challenges for supplier teams
Meeting tight deadlines for lengthy RFPs
Collaborating with subject matter experts
Interpreting dated or unclear objectives outlined in the RFP
Communicating value in a rigidly structured proposal
Unknowingly responding to unwinnable RFPs
Tracking down answers to previously asked questions
How RFPs are issued and answered will evolve
It seems obvious to anyone paying attention that the future of RFPs will rely heavily on technology. Digital transformation is here and it’s already changing the world, and RFPs are no exception. We are seeing a major shift away from hard-copy submissions. Many businesses and industries have embraced the savings of going entirely digital.
Technology as a tool for RFP management
We have so many tools at our disposal to help modernize and automate RFP management. Understandably, just as businesses are using communication and sales technology, they’re also adopting software solutions to improve RFP management.  For example, businesses can improve the process with dynamic RFx templates, automated proposal scoring, centralized knowledge libraries and instant response selection powered by AI and machine learning.
RFPs will become more targeted, transparent and strategic.
Over reliance on the RFP process in procurement can cause misunderstandings between buyers and suppliers. Luckily, using the right tool can instantly communicate expectations and improve transparency. When incorporated into the procurement process, vendor profiles, RFIs and RFQs can help achieve better results for everyone.
Collaboration will be the backbone of the RFP process.
We are more connected to information than ever. Likewise, the future of RFPs will make buyers and sellers more connected as well.
These days, buyers come into the procurement process with a ton of information from their own research. Similarly, suppliers can independently build a capture plan to tailor their offering to a potential customer. However, all that work and research is wasted if the two can’t communicate clearly, quickly, and effectively.
RFP issuers want better answers. Similarly, suppliers want more feedback about their responses. And everyone wants to have enough information to be successful. This is what strategic sourcing is all about ⁠— creating a lasting relationship between customers and suppliers. To accomplish that and enjoy the benefits of longer partnerships and fewer RFPs, the process must become more collaborative and transparent.
ProcUrPal is a solution to all these challenges. ProcUrPal’s stages and salient features of RFP to get the best bids, include:
Listing requirements through an Intake Form clearly highlighting the specifications of your requirement, budget, project details etc.
Create RFP document using standard templates, using the auto populated questionnaire. Ability to modify, add, delete questions.
Establish milestones, evaluation criteria, stakeholders, approver.
Publish RFP
Supplier Response to RFP
Collate, Compare & Evaluate
Decision & Award Contract
Effective collaboration between Category Manager, Business Units and Suppliers all on the common platform.
Interactive platform to seek and provide clarifications during the entire process.