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5 Benefits of a Streamlined RFP process

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Benefits of a streamlined RFP process

Many people believe that the procurement team’s time and resources are being drained by the RFP process. This is seen as overly complicated and time-consuming. RFPs can be time-consuming, especially when dealing with complex sourcing requirements. Such as significant investments in specialized technology or large manufacturing orders.

Procurement teams are often reluctant to change their RFP processes for fear of making things worse. Even if they believe there is room to do so.

However, new technology is now available that can completely transform your RFPs. Eradicating many of the pain points that have plagued them in the past. Your sourcing efforts can be vastly improved by automating routine tasks and data entry. By integrating RFPs tools with your current procurement systems. It is possible to alleviate many of your team’s RFP headaches by streamlining the process. It’s time to get used to the idea of a shift.

What is an RFP process?

You and your team must follow the RFP process to formulate, distribute, collect and analyze an RFP. Requests for Proposals (RFPs) are used to inform potential suppliers of what you are looking to buy. In order for vendors to demonstrate their ability to meet your requirements. They communicate your needs and expectations. The RFP process is broken down into six distinct stages:

  1. Getting a handle on what you’ll need
  2. Creating an RFP
  3. Making a preliminary assessment
  4. Contacting the suppliers who have been short-listed
  5. Making a decision on what you want to do
  6. Contracting the selected vendor.

Process

There is a lot of work involved in each of these activities. It often requires the involvement of multiple members of the procurement team. Starting with a clear understanding of the problem to be solved, all the way through to formulating specific requests. Everything must be done, from collaborating with internal stakeholders to reaching out to potential vendors and laying out your requirements. We’ll take care of everything from managing and consolidating vendor responses to figuring out which bid is the most suitable. Each task necessitates a high degree of caution and attention. Due to this, many procurement teams are stretched to their limit. They typically conduct 20 RFPs a year. Which accounts for just 20% of their annual spending. Because of this, each RFP is treated as if it were an entirely original process that could never be repeated.

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In contrast to the rest of the procurement toolkit, the tools used to create them are isolated. However, this needn’t be the case. In addition to complex sourcing requirements, RFP tools can be used to great effect. It’s also possible to use these tools as part of a larger procurement toolkit. Bringing value and efficiency to the entire department.

RFPs that are more efficient have several advantages.

There are many advantages for your team and your organisation when you streamline your RFP process and use best practices. 

  1. More RFPs

There is no doubt about the value of RFPs, even though they can be time-consuming to write and implement. However, only a few RFPs can be issued each year due to the lengthy nature of the process. To accommodate more RFPs, you need to improve your RFP response processes and request proposal workflows. So, how can you prepare for more RFPs? Put efficiency above all else and do away with all manual work. By automating many menial tasks, the average sourcing time can be reduced by half.

  1. More competitive bids

You’ll be able to fit much into your schedule if you reduce the time it takes to complete RFPs. There are more potential suppliers if you can submit more Requests for Proposals (RFPs). Your bid process will be more competitive if you have more suppliers. As a result, you’ll be able to control your spending better.

  1. Less error

Remove the human hand from tedious or data-heavy tasks to reduce the risk of error. Additionally, it frees up your employees’ time to work on more exciting and productive projects. RFP tasks like the following can be automated:

Loading component information into the RFP by pulling data from other integrated systems, such as your CRM and ERP.

Keeping an eye on the RFP progress throughout the event’s lifecycle.

Notifying stakeholders of the RFP process’s most critical tasks.

The calculation and measurement of proposal scoring.

Evaluations of vendors based on predetermined criteria.

Comparison of bids based on price tables obtained.

  1. Handle a wider variety of sourcing events

For complex sourcing events, RFPs aren’t always necessary. It is possible to use the RFP process for a wider range of purchases when it is simplified and fully automated.

  1. Integrated processes

Integrating your RFP process with your other procurement systems is at the top of the list of best practices for the RFP process. As a result, your group enjoys a slew of advantages. You can use procurement data in new and insightful ways as a result of the technology you’re already using.

So, how can companies begin to streamline their RFP process?

Streamline your RFP process

All of these advantages and more can be yours with Fairmarkit’s RFP tool. Using this tool, you can streamline your RFP process. Resulting in better bids and a better ability to conduct RFPs. As a result, it is able to seamlessly integrate with other procurement tools, allowing you to view and analyze all of your sourcing events from a single location.

When procurement teams use Fairmarkit’s RFQ and RFP capabilities together. They have a single source of information for all of their sourcing activities. Your procurement team will be able to see a lot more of your company’s spending activity with the help of structured reports and smart data sharing.

The procurement process can be made easier and more efficient by streamlining the RFP process. You’ll also be able to increase the number of sourcing opportunities available to your company, which in turn will help it grow. Fairmarkit’s new RFP module, for example, can automate your RFP process. And work with your existing systems to make life easier.

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2022
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Tuesday, 28th June 2022
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