How and When to Write an RFP
“We took a pallet of wooden boxes, and all the pallets were too big,” recalls Kravetz. “We had to work out compensation, because the vendors ignored the guidelines. They ended up paying the whole freight bill, which wasn’t small.”
Fairytale Brownies keeps much of its RFP process on a low-key basis. The department head that needs the product contacts a handful of vendors, typically by phone or in person. He describes what he is looking for, briefly discusses what the vendor can supply and asks it to send a proposal.
The catalog intends to put some new baking equipment in place during the spring, after Father’s Day—the last holiday before the winter rush. It began its vendor search last year, so it could begin using the equipment to build staffers’ familiarity.
Kravetz says Fairytale Brownies has outgrown its catalog order-management system. To start the process for selecting a new one, the information systems director will scout for vendors at the National Conference on Operations and Fulfillment.
Fairytale Brownies uses a combination of price and service level to determine the value a vendor is offering. “We’re not interested in the lowest price,” says Kravetz. “We’re interested in the best value.
“There are a lot of vendors,” he continues, “who low-ball the price, but send damaged goods, are not on time or it’s not exactly the product we contracted for. We don’t like any of those surprises.”
He says that as Fairytale Brownies has grown, the proposal process has become more important to doing business.
Definition:
A Request for Proposal (RFP) is a detailed request that provides product requirements, service terms and maintenance necessities to a vendor who responds with a list of capabilities and a price for his or her wares.
