RFPs were simply not designed to keep up in the modern business world. Requests for Proposals, or RFPs, are still used by 95% of companies. Though still popular in practice,
the actual results often leave smart business leaders wanting more. Once considered an essential process to reaching vendors for applications, IT, and project work, the slow and wasteful nature of the practice is taking its toll.
According to a LexisNexis survey of professionals, 17% say their firms handle 10-21 RFPs per month. Responding to just one RFP accounts for dozens of hours of work, review, and valuable time spent on just a chance of success. Arbitrary roadblocks to success are common feature in the RFP process, a lot of the time bidders must specify how long their business has been operational to qualify, automatically eliminating innovative solutions from startups and newer business. Instead of using RFPs to reach new vendors, smart business leaders seek out meaningful business relationships. Partnering with one vendor promotes mutual understanding, communication, and allows both parties to express creativity and synergetic results. A modern and more streamlined process known as Proof of Value, or POV, could be the right solution for businesses frustrated with traditional RFPs. Ensuring the best value for projects, POV encourages cost-effectiveness by predicting success, giving vendors a chance to prove their skill and stand out among others, and minimizes the effort to complete a project even before it’s begun.
Businesses of every size need fast and reliable solutions, so why are we still using RFPs to get the job done? Take a look at this infographic for more on RFPs, why they are bad for business, and how to break the cycle.
Infographic Courtesy of Semarchy https://info.semarchy.com/rfp-infographic