s only an illusion. Moreover, the RFP process destroys economic value, because a lot of work from different market parties is thrown away. Therefore, stop writing RFPs and switch to a Request For Meeting.
(Apparent) security
The aim of an RFP process is to select a supplier that offers the best price-quality ratio. Price is therefore often an important item in the scoring matrix: it is easy and unambiguous to demonstrate which price is higher and which is lower. But prices and especially hourly rates do not say much. It is better to hire an expensive person who can solve your problem quickly and very well, than someone who puts in a lot of hours for a low rate, only to come up with a less good solution. You also often see a whole series of questions and requirements regarding the company of the supplier, for example about turnover, the number of employees and how long the company has been in business. However, this information says nothing about the future of the company, or about the quality of the work delivered.
When writing RFPs, it is customary to give the suppliers the opportunity to send in any questions they may have by e-mail. The answers to the questions are sent to all participating parties, so that everyone works from the same information. That also seems very professional. But the supplier cannot ask further questions or challenge the assumptions of the applicant. Moreover, as an agency you will not ask your best questions, because the answers will go to all the other parties. In this way you are actually giving your expertise away for free to those competitors .
Destroying work
wasteThe biggest objection to RFP procedures is that iceland phone data they lead to a lot of wasted time and energy. Imagine: you have an assignment on offer that will amount to around 60,000 euros. You ask six parties to fill in an extensive RFP and to explain it with a presentation. It could well be that these parties together spend just as much time on obtaining the assignment as one party would spend on carrying out the assignment.
Nearly eighty-five percent of this work is done for nothing and is thrown away again. Even the work that the one party you select has done has in most cases been for nothing. They had to base that work on your own assessment of what the problem is. And that is not always the correct diagnosis. You might think that is a shame, but it is not important to you. After all, you do not pay for these efforts. But in the end you do pay the costs: the providers have to keep their company afloat and will include these (unpaid) efforts in their price. This makes products and services more expensive for everyone.
And I haven't even mentioned the work that goes on within your own organization reading, reviewing, and discussing all the extensive proposals. That time could all be better spent making things and solving problems in the world.
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