Monday, June 02, 2008

The RFP process rarely ends up with the best product or service

So many companies think that it is more professional or scientific to use an RFP process. This is only true when dealing with commodities or quantifiably similar products. Yet, in many cases the products or services being compared are not identical, and if variable, an RFP process will discourage a potential supplier from quoting for the best and possibly most expensive product. So an RFP process encourages the success of undistinguished products. How do you compare two products which have very different features. It is like comparing the proverbial apples and oranges.

1 comment:

OctoberBaseball said...

Mr Guha,

I read your post and nod along in agreement. I've been in Business Development (mostly hunting) for the past 12 years and have walked away from most RFP's that have been presented to me because there's rarely a clear understanding of what "wins the deal." However, they do mange to waste a great deal of time.
I've been presented with an RFP for non commoditized Legal Services for a Fortune 500 food and beverage company. Can you provide any direction for me?