Hi everyone,

I’m back with part 2 of the 16 steps of an RFP process that you didn’t know existed. Last time, I covered numbers 1 – 8 so I encourage you to listen to my previous sales tip if you haven’t done so already.

Today I’ll be covering steps 9 -16. These are the steps a buyer has taken before you actually get to see the RFP. They are in chronological order although the actual process can vary from buyer to buyer.

Step 9. Specification creation

As soon as the time plan has been created, the team can now develop the specification. As a minimum this should include 3 elements:

1. a technical specification which details all the operational and technical details of what needs to be bought.
2. a commercial specification that includes all the terms and conditions as well as the contractual element.
3. a quality specification which focuses on all the specific quality-requirements that you need to adhere to.

Step 10. Spend calculations

In order to calculate the saving achieved by running the RFP, a buyer needs to understand their spend figures. The two most common ways to make this comparison is to compare to last year’s spend or to planned budgets.

Step 11. Agree on selection criteria

Next up in the process is how the team decides on what basis they will make the final decision. This information is absolutely crucial for you as a seller. Is it 100% based on pricing or do service, quality, cost of change, sustainability or even cultural fit play a role here?

Step 12. Contract creation

In the background, all the contractual requirements are put together. Sometimes, buyers use template contracts. In specific cases, the contract will be tailormade. It’s important to note that professional buyers send the contract beforehand so they have more leverage to negotiate. It’s harder for buyers to negotiate the contractual terms after the deal has been agreed.

Step 13. Tender tool selection

At this stage, buyers will select a tool for running the RFP. It can be as simple as an excel spreadsheet although these days there are various e-sourcing platforms to choose from.

Step 14. Supplier long list creation

Here, the buyer will draw up a list of suppliers against the minimum and preferred requirements. This is called a long list. Depending on the market, this is usually a list of 10 suppliers or more.

Step 15. RFI set up

An RFI is a Request For Information and is aimed at doing a pre-selection of suppliers prior to inviting them for the RFP. The RFI usually contains questions on quality, service, financial, sustainability and more. After an RFI, buyers will have a short list of suppliers they want to invite for the RFP.

Step 16. Communication plan creation

The last step in the process is a communication plan. This includes both internal and external communications. It’s about defining when and what information you are going to share with your stakeholders.

After this step, the RFP process will be visible to you as a supplier since you’ll receive a first notification and perhaps even all the specifications.

So, why am I sharing all of this? Well, it’s because many sellers believe the negotiation starts as soon as they receive the RFP, so after step 16. I’m just giving you a different perspective that this is actually not the case. Throughout these 16 steps, there are many possibilities to influence the RFP process and the decision makers. Think creatively what you can do during each step of the process.

Happy negotiations everyone!