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RFPs and Alternatives: Finding the Best Procurement Fit
A Request for Proposal (RFP) can play an important role in procurement – especially for global mobility services and many companies believe that issuing an RFP is the only way to choose a new supplier. While RFPs are largely popular, are there other strategies to balance or streamline the process while ensuring due diligence and competitive sourcing?
The Strategic Role and Circumstances of RFPs
Requests for Proposals (RFPs) serve as a method for strategic supplier selection, providing a structured framework to promote transparency, fairness, and cost-effectiveness. By formalizing the evaluation process, RFPs empower organizations to identify reputable and trustworthy suppliers, thereby mitigating risks associated with unvetted or less qualified vendors.
Further, some organizations operate under procurement regulations mandating periodic competitive bidding cycles (often every three to five years), even in well-performing partnerships. This ensures ongoing comparative analysis of pricing, capabilities, and awareness of new products and services, and service quality within the evolving market landscape.
However, the traditional RFP process is not without its challenges: procurement / global mobility teams often face delays due to lengthy setups, shifting priorities, legal reviews, internal approvals, and final evaluation times.
Recognizing these potential inefficiencies, global mobility and procurement professionals may find increased flexibility through other sourcing strategies that can help balance out or reduce one’s exclusive reliance on RFPs. These concepts – when implemented thoughtfully and tactically – can uphold due diligence standards and satisfy competitive sourcing requirements.
Let's explore a few options:
1. Strengthen Existing Supply Chain Relationships
Companies that have strong connections with suppliers who consistently deliver excellent service, innovation, savings, and strategic value can eliminate the need for RFP rebidding.
An Accenture report, “Harnessing the Power of Supplier Collaboration and Innovation,” emphasized that procurement needs to recognize the importance of collaboration with strategic suppliers, identify barriers to effective supplier collaboration, and upgrade processes to ensure that collaboration delivers innovations.1
In such environments, the traditional RFP may become less of a necessity and more of a legacy process—perhaps even bypassed entirely in favor of proven, strategic, performance-based partnerships.
“Leaders are re-evaluating the supply chain as not just operational, but also a strategic opportunity,” commented Sari Mackay, Supply Chain Lead at Accenture ANZ in SupplyChainDigital.2 “These collaborations not only improve operational efficiencies but also drive strategic, data-informed decision-making across the companies’ global operations.”
When such a level of collaboration, connection, and trust is established, a traditional RFP process becomes less relevant and — in many cases — may be entirely avoidable.
2. Pre-Proposal Meetings with Suppliers
Determining which suppliers to include in a proposal process can be difficult solely based on the internet or industry searches. Finding the right supplier options for your organization is important, and this can be accomplished with introductory meetings held before any proposal process.
Meeting in person rather than virtually is a recommendation so procurement can gain a better sense of cultural fit, encourage more spontaneous problem-solving, and enhance engagement through non-verbal cues that cannot be experienced with virtual meetings.
3. Request for Information (RFI)
Before committing to an RFP, procurement teams can issue an RFI to gather market intelligence. An RFI allows businesses to explore supplier capabilities without binding commitments. This process provides insights into supplier culture and service delivery differentiators, market trends, security and compliance measures, and emerging technologies.
RFIs can help refine procurement strategies by identifying viable suppliers early in the process. With a well-structured RFI, organizations can determine whether a full RFP is necessary or if direct discussions with selected suppliers would be more effective.
4. Request for Solutions (RFS)
A developing trend in procurement involves using an RFI followed by an RFS, where suppliers identified in an RFI are invited to submit succinct proposals in response to a specific business challenge pertaining to the service or product. Since an RFS isn’t meant to solicit free consulting, companies are encouraged to be mindful — respecting the considerable time and resources suppliers may invest in a project that offers no guaranteed return.
If a supplier is selected as the future partner, their proposal can then be further developed in collaboration with relevant business stakeholders. This enables procurement teams to build upon the supplier’s RFI response and tap into their expertise while fostering their creativity.
For example, an energy industry company found that their recruitment efforts for a new remote plant location were not providing the hiring acceptance targets needed to meet their business objectives. They tried several internal measures before asking potential suppliers to present solutions for their hiring initiatives. The result provided several unique options for them to consider in their mobility program, and they continued conversations with the suppliers whose RFI responses and innovative solutions seemed the best fit for their organization.
5. Pilot Programs
If a company is nervous about committing to a long-term contract, procurement teams can initiate a pilot program engagement if their current agreement does not have an Exclusivity Clause – meaning your services can only be provided by the contracted supplier. This allows companies to test a supplier’s capabilities on a small scale before making a full investment.
For instance, a corporate relocation firm could issue a concise, thorough RFI and work with a new supplier on a limited-scope project, assessing performance and service quality before scaling up. If the supplier meets expectations, a direct contract can be negotiated, eliminating the need for a formal RFP.
RFP Balancing Act
RFPs will remain valuable business evaluation tools, but the process is a balancing act.
Ensure your next RFP isn’t a “Request for Pain”… Keep it targeted to key objectives and the most meaningful evaluation criteria the company prioritizes, but make it detailed enough to attract and select qualified suppliers.
Incorporating strategies complementing RFPs can gather more information, streamline procurement, reduce complexity, and foster innovative, strategic partnerships. Overall pricing -- and ensuring there are no hidden or “out of scope” fees to be discovered later after signing a contract -- is also key to one of many decision components but pricing should not be the deciding factor.
After all, the goal is to choose a strategy based on your organization’s unique objectives and find the best fit with a supplier. Emphasizing strategic collaboration with suppliers to drive innovation, savings, service, and value can build mutually beneficial relationships for sustained business success.3
Want to Know More?
RFPs are an important method to evaluate and conduct due diligence when selecting a relocation partner, but global mobility and procurement professionals may be able to increase flexibility and due diligence by using additional sourcing strategies, described above, along with an RFP process.
If you have questions about this or would like to discuss this or any relocation-related issue further, please contact your NEI Client Relations Manager or NEI Client Development representative at 800.533.7353 any time.
This material has been prepared for informational purposes only and is not intended to provide, and should not be relied on for tax, legal or accounting advice. Please consult your own tax, legal and accounting advisors before engaging in any transaction.
- https://supplychaindigital.com/articles/how-supplier-collaboration-platforms-enhance-resilience
- https://marketplace.procurementleaders.com/partners/accenture/resources/report-harnessing-supplier-collaboration-innovation?utm_source=chatgpt.com
- https://www.gartner.com/en/supply-chain/topics/supplier-relationship-management
RFPs and Alternatives: Finding the Best Procurement Fit
A Request for Proposal (RFP) can play an important role in procurement – especially for global mobility services and many companies believe that issuing an RFP is the only way to choose a new supplier. While RFPs are largely popular, are there other strategies to balance or streamline the process while ensuring due diligence and competitive sourcing?
The Strategic Role and Circumstances of RFPs
Requests for Proposals (RFPs) serve as a method for strategic supplier selection, providing a structured framework to promote transparency, fairness, and cost-effectiveness. By formalizing the evaluation process, RFPs empower organizations to identify reputable and trustworthy suppliers, thereby mitigating risks associated with unvetted or less qualified vendors.
Further, some organizations operate under procurement regulations mandating periodic competitive bidding cycles (often every three to five years), even in well-performing partnerships. This ensures ongoing comparative analysis of pricing, capabilities, and awareness of new products and services, and service quality within the evolving market landscape.
However, the traditional RFP process is not without its challenges: procurement / global mobility teams often face delays due to lengthy setups, shifting priorities, legal reviews, internal approvals, and final evaluation times.
Recognizing these potential inefficiencies, global mobility and procurement professionals may find increased flexibility through other sourcing strategies that can help balance out or reduce one’s exclusive reliance on RFPs. These concepts – when implemented thoughtfully and tactically – can uphold due diligence standards and satisfy competitive sourcing requirements.
Let's explore a few options:
1. Strengthen Existing Supply Chain Relationships
Companies that have strong connections with suppliers who consistently deliver excellent service, innovation, savings, and strategic value can eliminate the need for RFP rebidding.
An Accenture report, “Harnessing the Power of Supplier Collaboration and Innovation,” emphasized that procurement needs to recognize the importance of collaboration with strategic suppliers, identify barriers to effective supplier collaboration, and upgrade processes to ensure that collaboration delivers innovations.1
In such environments, the traditional RFP may become less of a necessity and more of a legacy process—perhaps even bypassed entirely in favor of proven, strategic, performance-based partnerships.
“Leaders are re-evaluating the supply chain as not just operational, but also a strategic opportunity,” commented Sari Mackay, Supply Chain Lead at Accenture ANZ in SupplyChainDigital.2 “These collaborations not only improve operational efficiencies but also drive strategic, data-informed decision-making across the companies’ global operations.”
When such a level of collaboration, connection, and trust is established, a traditional RFP process becomes less relevant and — in many cases — may be entirely avoidable.
2. Pre-Proposal Meetings with Suppliers
Determining which suppliers to include in a proposal process can be difficult solely based on the internet or industry searches. Finding the right supplier options for your organization is important, and this can be accomplished with introductory meetings held before any proposal process.
Meeting in person rather than virtually is a recommendation so procurement can gain a better sense of cultural fit, encourage more spontaneous problem-solving, and enhance engagement through non-verbal cues that cannot be experienced with virtual meetings.
3. Request for Information (RFI)
Before committing to an RFP, procurement teams can issue an RFI to gather market intelligence. An RFI allows businesses to explore supplier capabilities without binding commitments. This process provides insights into supplier culture and service delivery differentiators, market trends, security and compliance measures, and emerging technologies.
RFIs can help refine procurement strategies by identifying viable suppliers early in the process. With a well-structured RFI, organizations can determine whether a full RFP is necessary or if direct discussions with selected suppliers would be more effective.
4. Request for Solutions (RFS)
A developing trend in procurement involves using an RFI followed by an RFS, where suppliers identified in an RFI are invited to submit succinct proposals in response to a specific business challenge pertaining to the service or product. Since an RFS isn’t meant to solicit free consulting, companies are encouraged to be mindful — respecting the considerable time and resources suppliers may invest in a project that offers no guaranteed return.
If a supplier is selected as the future partner, their proposal can then be further developed in collaboration with relevant business stakeholders. This enables procurement teams to build upon the supplier’s RFI response and tap into their expertise while fostering their creativity.
For example, an energy industry company found that their recruitment efforts for a new remote plant location were not providing the hiring acceptance targets needed to meet their business objectives. They tried several internal measures before asking potential suppliers to present solutions for their hiring initiatives. The result provided several unique options for them to consider in their mobility program, and they continued conversations with the suppliers whose RFI responses and innovative solutions seemed the best fit for their organization.
5. Pilot Programs
If a company is nervous about committing to a long-term contract, procurement teams can initiate a pilot program engagement if their current agreement does not have an Exclusivity Clause – meaning your services can only be provided by the contracted supplier. This allows companies to test a supplier’s capabilities on a small scale before making a full investment.
For instance, a corporate relocation firm could issue a concise, thorough RFI and work with a new supplier on a limited-scope project, assessing performance and service quality before scaling up. If the supplier meets expectations, a direct contract can be negotiated, eliminating the need for a formal RFP.
RFP Balancing Act
RFPs will remain valuable business evaluation tools, but the process is a balancing act.
Ensure your next RFP isn’t a “Request for Pain”… Keep it targeted to key objectives and the most meaningful evaluation criteria the company prioritizes, but make it detailed enough to attract and select qualified suppliers.
Incorporating strategies complementing RFPs can gather more information, streamline procurement, reduce complexity, and foster innovative, strategic partnerships. Overall pricing -- and ensuring there are no hidden or “out of scope” fees to be discovered later after signing a contract -- is also key to one of many decision components but pricing should not be the deciding factor.
After all, the goal is to choose a strategy based on your organization’s unique objectives and find the best fit with a supplier. Emphasizing strategic collaboration with suppliers to drive innovation, savings, service, and value can build mutually beneficial relationships for sustained business success.3
Want to Know More?
RFPs are an important method to evaluate and conduct due diligence when selecting a relocation partner, but global mobility and procurement professionals may be able to increase flexibility and due diligence by using additional sourcing strategies, described above, along with an RFP process.
If you have questions about this or would like to discuss this or any relocation-related issue further, please contact your NEI Client Relations Manager or NEI Client Development representative at 800.533.7353 any time.
This material has been prepared for informational purposes only and is not intended to provide, and should not be relied on for tax, legal or accounting advice. Please consult your own tax, legal and accounting advisors before engaging in any transaction.
- https://supplychaindigital.com/articles/how-supplier-collaboration-platforms-enhance-resilience
- https://marketplace.procurementleaders.com/partners/accenture/resources/report-harnessing-supplier-collaboration-innovation?utm_source=chatgpt.com
- https://www.gartner.com/en/supply-chain/topics/supplier-relationship-management
