It’s easier than ever to send out an RFP or RFQ (request for proposal or quote) and find the product or service you require. Are you still not finding the best product or service from the most reliable supplier? Easy doesn’t mean successful.
An e-auction works well if you need a standard product or service with uncomplicated specifications offered by several suppliers. In a reverse auction, your business initiates requests for quotes; in a forward auction, it is seller-initiated, like eBay. There are many apps to automate auctions, thus speeding up the process.
When there are fewer suppliers with varying expertise, and you need more than a price, it’s time to go to an RFP. Product or service specifications and answers to other essential questions are required. These questions include delivery date, financial status, quality certifications, supply chain constraints, customer references, and any other details your company considers critical.
With the advent of software to automate the RFP process, you can ensure that no critical item or stakeholder input gets overlooked. Missteps can have severe consequences for your business. Imagine discovering that the bank locked up your prototype because your supplier is bankrupt.
Do you know what your business needs, but not exactly? It’s time to move to an RFS or RFC, a request for solution or collaboration. You’re out to find a supplier to innovate and collaborate with. Both proposal types have long discovery periods, involve only a few suppliers, and take months to make the best business decision.
Author: Kris Keppeler is a writer who finds technology fascinating and loves humor. She writes on Medium.com, and for Women of Wisdom. An award-winning podcast producer who enjoys telling funny stories. Follow her on X (formerly Twitter) @KrisNarrates or on LinkedIn.
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