A Request For Proposal (RFP) is a way of getting proposals from different suppliers on products or services. And it is also a way of comparing the level of creativity and development skills between different suppliers, which also could be used as a parameter when choosing the proposal(s) to go further with. However, to really make it possible for the suppliers to give you any good suggestions, you need to make an effort to compile an extensive and correct RFP.
If you are in the the very early stages of gathering information. An RFI, Request For Information, could be a better alterantaive than an RFP. Sending out an RFI does not take as much effort as an RFP or RFQ, and could be a good way of narrowing down the number of suppliers to invite for the next step, the RFP. When you know rougly what you want, the functions, and so, an RFP would be the best choice.
The benifits of using a formal RFP are:
- You notify suppliers of your intention to possibly buy producs or services.
- You make it clear that they are not the only one getting the information (then you simply would have given them a call...).
- You get a formal reply from the suppliers, which is easy to forward into your organization and also could have a legal validity.
- You show that you try to act without a prejudice or with a preferred supplier.
How to get good responses to an RFP?
- Contact the suppliers not only through the RFP, but also by telephone or live meeting for in to depth discussion. However, do remember to also give any new revealed information to the other competing suppliers.
- Be detailed in your RFP, in other words, do the background work and prepare seriously. If you send crap information out, you'll get crap information in. And off course the opposite. Good questions get good answers.
Details to include in an RFP
Basic information
- RFP number
- Date for sumission of the Proposal.
- Contact information (for technical or commercial questions)
- How to send in the RFP and the reqested format
- Number of days the proposal should be valid
- Background information on the company
Extent and target
- Background information on the project
- Target of the project
- Extent/Scope, what is included and not?
Time frame
- Date for pre-proposal meeting (if necassary).
- Last date for submitting questions.
- Date for decision making and awarding contract.
- Timeframe for delivering samples/prototypes.
- Date for start of production (SOP)?
- Date for phasing out the product.
Design information and requirements
- Basic problem to solve
- What is the function of the component or system?
- What systems and products is the component connected to?
- What are the limits in space?
- Design, look and feel.
- Requirement on such as paint, durability, expected lifetime, etc.
Commercial requirements (if no valid purchase agreements are available)
- Payment term
- Delivery term
- Delivery address(es)
- Quality requirements (such as PPM)
- Other requirements
Budget
- Estimation of maximum investment costs (for example tooling)
- Estimation of training charges and other costs
- Estimation of maximum prototype costs
- Estimation of maxiumum price per component
Evaluation and award criteria
- Details on how the RFPs will be evaluated
Download free template of an RFP
This RFQ template assist you when putting together the RFP. It is a form that includes instructions and sample information. It will hopefully save you time and make sure that you do not forget anything. If you are uncertain of how to write, need an example or want to know what an RFP is, then download and take a look. It is free!
 Download free template of a Request For Proposal (RFP) >>
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