Many say the RFP process is "used to get the best possible price".
I'm sorry. Itâs not. Even Wikipedia is wrong.
I donât like semantic battles
And I know many in Procurement are being tasked with cutting costs for Q3 of 2026
Particularly with the continued bleak economic forecasts and widely held viewpoint that AI can drive efficiency savings.
But if you employ that approach to assess outcomes, the most likely long term one for your business is failure.
So, what exactly is an RFP used for?
RFP is short for âRequest for Proposal.â
But perhaps it should be rebadged as âRequest for Partnershipâ.
The goal of an RFP is to evaluate multiple options and get the maximum return on any investment your business makes.
It's about learning whatâs available as efficiently and objectively as possible.
Maximising value while minimising risk.
Not creating a low cost MVP solution for your business.
The evaluation stages of an RFP often cause greatest confusion.
Once the RFP has been sent to suppliers, many evaluate the responses based on pre conceived criteria of âwhat good looks likeâ.
And the worst go on to over inflate the importance of cost while completely dismissing the significance of value.
In a Vendr interview here https://lnkd.in/g9S86SKH
re-evaluation of key performance indicators (KPIs) is discussed, particularly the shift away from focusing solely on cost savings.
Dr. Elouise Epstein advocates for using revenue as a more effective guiding metric and turning cost centres into profit centres where possible.
Another approach I heard recently and loved is using the term "solutions workshops," rather than supplier or product demos when it comes to the presentations in an RFP.
The emphasis being on collaborating with suppliers to learn and develop understanding
Rather than pitching suppliers against each other in a race of doom to the bottom.
You can learn more about how I believe we should progress the profession here (20,000+ now get my weekly insights for free): https://procurebites.com/
~~~
P.S. I created a cheat sheet âHow to create an RFPâ. You get a hi res PDF version of this and all the other cheat sheets I've created (80+) the moment you sign up for free too.
Repost â»ïž if you found this helpful.
I'm sorry. Itâs not. Even Wikipedia is wrong.
I donât like semantic battles
And I know many in Procurement are being tasked with cutting costs for Q3 of 2026
Particularly with the continued bleak economic forecasts and widely held viewpoint that AI can drive efficiency savings.
But if you employ that approach to assess outcomes, the most likely long term one for your business is failure.
So, what exactly is an RFP used for?
RFP is short for âRequest for Proposal.â
But perhaps it should be rebadged as âRequest for Partnershipâ.
The goal of an RFP is to evaluate multiple options and get the maximum return on any investment your business makes.
It's about learning whatâs available as efficiently and objectively as possible.
Maximising value while minimising risk.
Not creating a low cost MVP solution for your business.
The evaluation stages of an RFP often cause greatest confusion.
Once the RFP has been sent to suppliers, many evaluate the responses based on pre conceived criteria of âwhat good looks likeâ.
And the worst go on to over inflate the importance of cost while completely dismissing the significance of value.
In a Vendr interview here https://lnkd.in/g9S86SKH
re-evaluation of key performance indicators (KPIs) is discussed, particularly the shift away from focusing solely on cost savings.
Dr. Elouise Epstein advocates for using revenue as a more effective guiding metric and turning cost centres into profit centres where possible.
Another approach I heard recently and loved is using the term "solutions workshops," rather than supplier or product demos when it comes to the presentations in an RFP.
The emphasis being on collaborating with suppliers to learn and develop understanding
Rather than pitching suppliers against each other in a race of doom to the bottom.
You can learn more about how I believe we should progress the profession here (20,000+ now get my weekly insights for free): https://procurebites.com/
~~~
P.S. I created a cheat sheet âHow to create an RFPâ. You get a hi res PDF version of this and all the other cheat sheets I've created (80+) the moment you sign up for free too.
Repost â»ïž if you found this helpful.