Expect to be evaluated on your experience, your price tag, and the quality of your response. Show the issuer what you can do, how you can do it, and why you can do it better than anyone else. The RFP is your opportunity to lay all your cards on the table. This will also be the largest investment as far as resources that you’ll commit to responding to an RFx. However, once you’re selected to respond to an RFP, you can add prospective revenue to your pipeline. When an RFx is not certain of gaining revenue, then you want to minimize resources spent on responding. This will be early on in the sales process, possibly too early to even count toward your pipeline. Hopefully, it’s something you do regularly and doesn’t take up a lot of bandwidth, for you or any other response team members. Responding to an RFI will get your foot in the door. If you’re even luckier, then you represent one of the 43% of organizations using RFP-specific software, which helps automate response processes. Many sales professionals still work from personal content libraries they’ve amassed on their own, which is problematic for brand management and onboarding new employees. If you’re lucky, then you have a unified content repository of some sort to reference for your responses. It’s up to you to respond appropriately in an attempt to put your product or service at the top of the list for RFx issuers. Response teams require expertise from multiple areas, including sales, product development, product marketing, finance, contracts, and more, depending on the product or service you sell. When you use RFx for business development, then you are the RFx responder. Using RFx for business developmentįor the 69% of salespeople who do not have enough leads in their pipeline, RFx opportunities are an opportunity to drive revenue. Nonprofit organizations have grant money available and seek applications to distribute the grant, such as for placing veterinarians in underserved areas.
Agencies want to solve a very specific problem, such as building the capacity for drinking water systems. Funding has already been set aside for a specific requirement and now agencies or organizations are seeking recipients of funding. RFAs are associated with government agencies and nonprofit organizations. “RFB” is also known as “invitation to bid.” While this terminology does appear in the U.S., it may be more common internationally, where issuers post “tenders,” and responders submit “bids” in response to those tenders. At this point you know the exact product or service that you want so you request a price quote for that specific solution. cost = 35%, experience & performance = 35%, response quality 30%), budget expectations, and timing details.įrom your pool of RFP responses, you’ll submit an RFQ to one or two providers to finalize your costs. It may also inform responders how responses will be evaluated (e.g. Your RFP will ask for in-depth problem analysis, what it will take to solve the problem, how a vendor proposes they’ll solve the problem, proof of solving similar problems in the past, and, possibly, an estimate on cost. It will help narrow down providers to whom you’ll want to submit the RFP, which will be much more detailed and a heavier lift for you to evaluate. The RFI will be high level, probing to see if a problem can be solved. Ultimately, you want to play your RFx cards to select an ideal vendor using strategic sourcing. Typically, you’ll submit requests in the following order: If you use RFx for procurement, then you’re the issuer creating the RFx. However, if you want an overview of how you can use any of these RFx varieties for your business - either in procurement or business development, then you’re in the right place. Solve for x.Įxplanations and definitions of these are insightfully encapsulated here (processes) and here (glossary).
Vickers’s crystal ball wasn’t so foggy after all.īack to the original question: What is RFx? It’s the shorthand for your “Request for” category of procurement and sales processes and documents. It only took 35-ish years, but it turns out Mrs. She assured me that algebra would come in handy in my adult life. Vickers, my pre-algebra teacher, was right. What is RFx? In this case, it’s proof that Mrs.
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