A request for proposal (RFP) gives a client an opportunity to outline what it needs and wants from a vendor. The RFP process also offers vendors an opportunity to demonstrate to a potential client why they are the best company for the project. For that reason, its imperative both the vendor and the client ask each other the right questions at the start of, during and after the RFP process.
Asking the right questions throughout the process will help clients put together a strong request for proposals. Knowing what questions to ask also allows vendors to determine if the RFP is worth responding to and what they can expect from the negotiation process with a client.
Read on to find RFP questions to ask vendors and clients, as well as sample RFP questions and why each of those questions is important. Read our latest article to learn more about the RFP process timeline.
The importance of asking vendors the right questions
Ultimately, the purpose of a request for proposal is to simplify the supplier selection process. It gives you an apples-to-apples view of what each vendor has to offer and enables objectivity. In addition, when it comes to complex, high-value indirect spend, asking the right questions and using RFP weighted scoring are a winning combination. It ensures that your RFP results reflect the unique priorities of your business.
Consequently, all of these benefits make RFPs the go-to tool for finding partners that maximize value and minimize risk. However, all of those benefits hinge on asking the right RFP questions.
Questions to ask yourself before you begin
Before you ask any RFP questions to vendors, there are a few questions you should ask yourself. Considering these questions will ensure your project starts off on the right foot and can be executed efficiently and effectively.
Sometimes, an RFP isn’t the best tool for your procurement project. If you’re looking to check a price, identify the most qualified vendor or gather information about the market for planning purposes, an RFP is not the way to go. For example, you may need to first send a request for information (RFI), request for qualification (RFQ) or request for quotation (RFQ).
Even if you decide that another RFX process is the best first step, much of the advice contained here still applies. So, read on for helpful tips for RFQ and RFI questions to ask vendors.
The RFP process can be complicated. Accordingly, it’s important to ensure that everyone knows their role, including who is ultimately responsible for moving the process forward. Not only is this information important for your internal stakeholders, but it is also helpful to include a single point of contact for vendors who many have questions.
Naturally, we recommend centralizing everything in an RFP management system like RFP360. Housing all these inquiries, updates and decisions in one place, managed by one person (in collaboration with others) shortens your RFP timeline, establishes consistency and ensures projects are delivered on time and within budget.
To explore the RFP process in detail, download the ultimate RFP process guide ebook.
Generally, every procurement project needs input from the department making the request. In addition, most require additional teams and individuals to establish requirements, evaluate vendor responses and approve terms or contracts. For example, many RFPs will involve IT, procurement and legal departments. The earlier you include them, the better. In addition, it is helpful to use a RACI matrix to clarify roles and responsibilities.
Does the new solution integrate with existing systems?
Vendors need to know if they are working on a standalone solution, or if your company plans on working the solution into existing software or other existing programs or protocols. Take time to outline what systems, if any, the solution will work with and how they will play together. Its also a good idea to provide full details on existing systems, such as how they get maintained and updated.
Figuring out your companys budget for the project means more than examining how much money you have to spend. It also means researching market rates and finding out what similar companies have paid for similar projects. You can also contact vendors to find out what they typically charge for projects similar to yours.
Setting a budget also gives your vendors an idea of what youre looking for and can help them shape their proposals to your needs.
You want to give vendors a due date for the proposal and any other material submissions. You also want to give vendors a “know-by” date, or a date by which you expect to make your decision.
Its also a good idea to include a timeline for the project itself. For example, when do you expect the project to go live, and when would you like to receive certain parts or components of the project? Giving vendors an idea of what you expect during the implementation of the project will allow them to confirm they have the bandwidth and ability to work with you.