Find out now what RFP is and how to prepare it

In general, companies may have some problems with suppliers, especially those related to reporting exactly what they need. In this case, the lack of a document like the RFP can be detrimental, since it helps in the direct communication between company and supplier. 

Thinking of the importance of this instrument, we selected some of the main information about it. Check it out! 

What is RFP? 

Known as Request for Proposal, the RFP is a document prepared by the company describing information on how to receive the products and services it needs. This document is sent to the supplier and serves as a kind of invitation, requesting that a work proposal is presented. 

It is likely that an RFP will contain not only the information on the products and services requested, but also the requirements for proposal response and the company’s offer in return. 

Usually this tool is used when a budget for a project needs to be prepared, especially when there are several companies involved. 

How to prepare an RFP? 

It is important to understand that each company has its particularities when requiring materials. Nevertheless, the RFP may have some key steps in its preparation. Next, you will learn what they are. 

Look for proven formats 

If the company has been operating for a while, it probably already has an RFP format – not only defined, but proven. A good idea is to take advantage of it if there is a need to develop a new one. 

Evaluate the requirements 

Initially, it is necessary to determine what will be purchased and the potential price. Then some matters should be defined, such as delivery method, quantity, etc. In this case, the information should ideally be obtained from those responsible for that area in order to be more accurate. When it is time to establish the scope, check if you will need to contact the supplier for support after obtaining the product. 

Lastly, the next steps are the calendar, supplier evaluation and restrictions. The first is related to the deadline and its limit; the second relates to the performance of the supplier, how he carries out his service, and what criteria are used to choose the best supplier for your company; the third is to assess if there are risks, what can happen that directly affects the product or service provided, etc. 

Prepare the RFP 

After evaluating all the issues, it is time to generate the RFP. There are some basic topics that should be contained in the document, such as: 

• executive summary – here are all the information on the requirement, in addition to company data, so that the suppliers have knowledge of its essence; 
• project description – a summary of the project or activity, in which what is requested will help in the production; 

• request for supplier details – in this case, the more you know about the supplier, the better, especially his level of market experience. In addition, it is important to have a summary of the company’s history in the market, as well as details of its financial performance; 
• delivery capacity – also related to the supplier; this should have not only the level of delivery, but also its time limit; 
• dates – this topic contains information on start dates, return, permission, and any other needed. 

In addition to these topics, the RFP may contain design and functional requirements, evaluation criteria, submission guidelines, among others. 

Check the logistics 

In the last step, it is time to assess whether suppliers agree with what the company is looking for. In addition to analyzing the means for preparing an RFP for the chosen supplier, one must indicate how to contact the company. 

Where to use the RFP? 

The use of RFP is quite versatile – for example, it can be used as the scope of a project, as well as the budget model, which determines the amount that is expected to be received, and the terms and conditions. 

With the information contained here, it is now clear what an RFP is, right? Do you want to keep following our content? Then follow us on Facebook, Google plus, LinkedIn and Twitter! 

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