Suppliers and buyers alike often complain about mismatching skills and services. Part of the problem is providers not being selective enough when it comes to participating in the RFP process to begin with. Providers should match their unique services and offerings against the requirements to build the most competitive option, but they should also be sure to look outside themselves at the proposals to be able to set them up for success in the future. This means that providers need to demand more from prospects before considering participating in an RFP. Here’s what you should require from an RFP before getting involved.

The Why

A well-written RFP would make clear why the initiative is taking place. Is it the first step in a multiyear consolidation project? Is it simply a company policy to rebid every book of business every three years? Is the incumbent supplier having significant service failures? Each of those have a distinct objective in mind which may or may not align with yours.

For example, many companies require all categories of business to be rebid within a certain timeframe, believing that market pressure will keep incumbent suppliers pricing competitive over time. The problem is the bar to oust an incumbent in this situation is incredibly high, and often not worth the investment required to respond to the RFP.

Decision Process

What is the decision process used to determine the winning bidders? How many people are involved, what is the timeline, and what is the basis for comparing suppliers? What you’re looking for is a decision process that matches your expertise. For example, if they highlight process efficiency as a core decision criteria and Six Sigma is embedded in your culture, that would set you apart. Also, ideally you want to see a decision process that is regimented and clearly tied to the questions in the RFP. If a decision-making process is not defined, you should decline to participate. The cost may be too high.

Realistic Volume

It is a common complaint that the volume number as presented in the RFP process is hokum or voodoo. Of course it would be foolish to assume that volume numbers will be set in stone, but expect the client to tell you more realistic numbers. Consider offering certainty rates based on volume guarantees. There are permutations and pricing to encourage better volume commitments, so take advantage of those.

Duration and Plan

Nobody I know pursues an RFP with an eye toward getting out of it in a year or two. With that in mind, it’s important to know what they want the program to look like in three to four years. If they don’t have an MSP, do they intend to have one? And if they do have one, will that be going out to bid within the life of the contract? How about geographic expansion or division expansion? There are many changes that can occur over years in a program, and if you are going to be part of the buyer-supplier family it is important to understand where that group is going to ensure your success for the long term.

RFP Structure

An RFP is like a résumé or a dating profile. Both are meant to be a starting point for determining whether it’s worth pursuing a long-term relationship. And just like looking for typos or errors in a résumé, or glaring half-truths in a dating profile, as a provider you need to evaluate the RFP itself for red flags. The RFP should be of sufficient detail to match the opportunity. How thorough is the document? Is it well-written with good grammar and relatively error-free? Does it flow naturally with clear instructions on next steps in action items as well as clearly articulated deliverables and standards? While that’s a tough standard to articulate and codify as you read it, use your judgment. A $100 million opportunity with a one-page Excel spreadsheet is as problematic as a 37-page, 500-question RFP for a $50,000 opportunity. In either case, you should run for the hills. If you want to make a love connection that will lead to a long-term marriage, you need to make sure you’re compatible.

There are literally dozens of criteria that can come into play when making a decision on an RFP, but in the end someone needs to take a stand and require a transparent market that provides the best possible opportunity for everyone to succeed. By saying no more than you say yes, you can make sure that your strategic resources can be dedicated to areas where you are best equipped to succeed with companies whose needs match the ones you are able to provide, and that’s good for everybody.