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You don’t always need an RFP.

I’ve long advocated for Simplicity in Procurement and the very best Procurement pros offer flexibility.

They work with stakeholders by understanding their needs, assessing the pain points as well as the critical timelines.

Let’s be clear, an RFP can sometimes take too long for what’s required.

Procurement pros can end up disqualifying potentially good vendors simply because they didn’t follow the rules.

Also, many vendors won’t submit a proposal because they find the RFP process too cumbersome and expensive.

Just think what this does to the diversity of the supply chain? You end up with only the biggest vendors, with deeper pockets and more resources able to participate.

RFPs can prohibits relationship-building too.

Members of the evaluation committee are typically prohibited from speaking to vendors and the only communications allowed are the official ones that go to all vendors. This is meant to ensure a fair process, but the downside is that the evaluation team doesn't learn details that might indicate a good company-vendor fit.

A badly run RFP can also preclude potentially important vendor benefits. A

A vendor may offer services that the company might benefit from, but if they aren't included in the RFP the client won't see them.

So in what circumstances is it okay to avoid the full RFP?

Here’s 4 things you should consider.

1. How many viable options are there really?

In much of my current role in the financial services sector, I’m operating in a niche sector with niche market options.

This doesn’t mean there’s no room for benchmarking but a full RFP with 4-6 vendors is just not viable.

2. Is the Incumbent a Shoo-in?

In which case you’re wasting everyone’s time.

Only go to a full RFP if there’s a genuine desire to change the service.
This doesn’t meant the incumbent can’t win the contract, but you have to establish if there’s a true willingness to change.

3. Is the platform already on fire?

I once started a role where there was genuinely a need to secure a solution within 25 days.

A major dispute had let to an existing vendor walking away. The impact of not finding an alternative option fast would have had significant consequences on the service.

I needed to find another courier option so we could still offer our customers the same ‘next day’ delivery offer or we’d have lost our competitive edge.

The 90 day full RFP just wouldn’t have cut it.

4. Is this a pure commodity?

A widget or a simple product or service that can easily be benchmarked, without reams of paperwork or a full scale evaluation?

A rule of thumb I use.

If the specification of your requirements can be defined within 1 page, your buying needs can be benchmarked appropriated without a full RFP.

But explaining this to stakeholders is key

I get why there’s so much confusion from the business.

One week there’s a full scale RFP with a kick off meeting, requirements gathering, evaluation meetings and presentations.

and then with the next activity, the process is quick and easy.

The bit that’s often missing in building rapport with stakeholders is explaining the rationale for the approach.

And even better than that involving them in discussing the options available.

I’m convinced the RFP process done properly is the best way to deliver sustainable progress when it comes to vendor selection.

But it’s not the only way and should never be our automatic default position.