By Liz Cook and the Mind Tools Team
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Request for Proposal Documents

Getting Better Terms With a Competitive Bidding Process

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mrPliskin

A well-managed RFP process helps you procure the best products and services

All too often, organizations have problems with their suppliers.

Sub-standard goods, tardy deliveries, inflated prices, and disrupted supply chains can all have an obvious adverse impact on your organization's success.

So how can you help your company overcome these problems? How can you get the best possible product for the lowest possible price? And how can you ensure that your business needs will be met on a timely and assured basis?

Part of the solution lies in starting the relationship with your supplier with a competitive bidding process, by issuing a well-crafted Request for Proposal (RFP) to the market. This competitive bidding process seeks the best possible quotes for required products/services from vendors, measured using common set of standards.

The RFP, also referred to as Invitation to Tender (ITT) or Request for Information (RFI), forms the cornerstone of this bidding process.

A formal, written document, the RFP outlines information about the organization, and details the products and services to be sourced from external vendors. It lays out the specific requirements that vendors need to keep in mind when responding to the bid, and outlines how the company will review and award the proposals received.

Although creating a RFP can be a long, drawn-out process, it is well worth the effort for large one-off purchases, and for ongoing supply contracts. In these cases, it yields many benefits:...

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