RFP

RFP

Introduction

This involves first of many theoretically suitable suppliers to get a few key information - that is via the RFI (Request for Information, Request for Information) - and then get a few interested, qualified suppliers very detailed information - this is done via the RFP (Request for Proposal, Request for Quotation).

The RFP process is part of the basic repertoire of every buyer. However, practice shows that in spite of frequent use and a variety of experience with buyers, potential for optimization.

The RFP should be as short and simple and typically has three parts.

A cover letter to present to the company itself and to arouse interest in supplier

A general part, which is typically the same for all RFPs in which quite a few key information such as revenue, number of employees and reference customers are queried

Procurement has a group-specific, are checked in with a few of the questions about whether the supplier meets the technical requirements and interest in receiving an RFP (Porter-Roth, 2002).

Main objective of the RFP is to obtain the highest possible response rate. The RFP should be designed so that an employee of the supplier can fill it within minutes. Therefore, even as many of his questions only to tick. A frequently observable error in the design of RFPs are long, extending over many pages issues that take part have the character of a business or technical audits.

Discussion

This RFP will be sent to the most comprehensive list of potential suppliers, which could provide the products to be questioning if necessary. To create this list should be used as many different sources, such as databases, web search, internally known suppliers. Previously RFPs were sent manually via fax.  Today there are more elegant ways to such email or professional fax service.

Sent the RFP has two main functions. For one of the few suppliers relevant parameters related to product range, capabilities, customer references and technologies should be sought. Based on this information, those suppliers are selected, the next step is to actually get a request for proposal. Secondly a RFP has a communication function. By sending the RFP to a large number of suppliers will be communicated broadly to find new suppliers. This has the effect that competition is already shaken up early in the tendering process. Particularly with respect to existing suppliers can improve the short-term negotiating position thereby.

Based on the RFP returns to selected suppliers who are the next step is get a quote including the necessary technical data. Even with the creation of the RFP should therefore bind the supplier resources. Suppliers do not have an unlimited number of engineers and calculators, and prioritize their use. Therefore regarded as top priority to make the RFP Sun suppliers friendly as possible (Hodgson, 2002).

Not to be forgotten also provide feedback to the participating suppliers. Firstly, it must be ensured that the supplier on receipt of the offer as soon as possible receive feedback on how his bid compared to the other party or to the existing supplier is located (American Public ...