Primer On Procurement and RFPs For The 21st Century

  • Research the truck market
  • Get a sense for internal requirements (e.g. performance tolerances)
  • Identify a list of relevant truck suppliers
  • Onboard the truck suppliers as vendors of record by requesting them to disclose up-to-date vendor risk management information
  • Write the Statement of Work
  • Wrap the Statement of Work with the procurement rules to create the RFP
  • Get approval to issue the RFP from the MegaCorp committee
  • Send the RFP to a number of suppliers
  • Review the final proposals from the suppliers
  • Score the supplier responses according to the framework in the RFP
  • Recommend to the committee a vendor with whom to negotiate a contract
  • Separate the SOW into a list of questions to answer
  • Verify consensus that they have identified all of the questions and done so correctly
  • Extract the operational steps they need to execute from the rules part of the RFP
  • Assign the questions to relevant individuals
  • Answer the questions
  • Convene to review the answers as a group, including making a final determination on price
  • Revise the answers
  • Reassemble the answers into a coherent prose response
  • Complete the operational steps
  • Submit the proposal
  • The RFP team leads read each of the bid documents, scoring them individually
  • The RFP team leads meet to finalize the scores for each of the proposals
  • The RFP team leads present to the buyer committee, recommending the vendor with the highest score
  • The buyer committee selects one of the suppliers with whom to start negotiating (not necessarily the one with the highest scored ranking)
  • Complete negotiations
  • Sign a contract
  • Siloed information
  • Siloed information systems
  • Lack of data analytics
  • Limited view into costs
  • Difficulty adhering to procurement mandates
  • Spend Visibility — understanding what the organization spends
  • Collaborative Sourcing — tools that help teams collaborate internally can shorten category strategy development time by 30%
  • Analytics — analytics solutions specialized for categories
  • Cost Analysis — knowing what items “should” cost
  • Supplier “X-Ray” — central location for data about suppliers
  • User Experience — improved user experience the single biggest factor to foster adoption
  • Performance Scorecards — assessing the performance of both buyers and suppliers
  • Procurement influences 93% of spend (vs. 64% for the non-elite peer group)
  • Generation of 75% more savings via cost reduction and cost avoidance
  • Over 4 times as likely to be perceived by stakeholders as an integral and valued business partner
  • More than 2 times as likely to be seen as expert

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Chand Sooran

Chand Sooran

56 Followers

Founder & CEO, EdgeworthBox. Investor and entrepreneur. I want to change the RFP business process.