Supplier Selection: Set menu or Sm?rg?sbord

This may sound crazy, but just because a Solution Provider receives an RFP does not mean they're going to respond. In the same way that a Merchant needs to optimise the resources available to them, then so does a Solution Provider. Merchants want choice; a sm?rg?sbord of delectable options to select from. However, the larger the choice the more respondents who will inevitably end up disappointed that they were not selected; the veritable cockles and winkles to the more popular prawns and crabs. And who wants to be a winkle?

It's uncommon for a Merchant to enter into an RFP without understanding who the key players are in the marketplace. They know who they want in their selection and, often, they have a preferred or maybe even an expected winner of an RFP process and so from the very outset bias is introduced. This can be harmful to the best outcome as questions can be swayed towards this provider and not considerate of some of the strengths and new approaches offered by other providers. This is not to say that the process is determined upfront, but by starting a process off in one direction could, at best, mean an extended process as new criteria or benefits come to light.

It's precisely for this reason of a potential preferred Solution Provider, that some vendors choose not to participate and it really could be to the detriment of the Merchant's best interests. The short video below highlights some of the considerations a Solution Provider may have when receiving an RFP to determine whether to respond or not.

Having a clear understanding of the expectations of both sides of the process leads to the best outcome from an RFP. This should include:

• Careful consideration of the marketplace, latest technologies and participants in the process
• Determine upfront a process to enable new criteria and requirements to be added that is transparent to all participants
• Well-defined, succinct and specific questions
• Open line of communication with participants (this need not mean daily phone calls with each invited participant, but some method of communication will benefit the process in the long-run)
• Clear and simple instructions on the output of the RFP - for example, the level of detail required
• Realistic timelines

Being transparent and clear about the drivers of the RFP and ensuring the process ends up with a good set of responses, which enable fact-based decisions to be made or clarity on the risks being taken where facts are not available, will help ensure success for all parties in the process. Sometimes a Merchant may be willing to take a new risk especially if costs and perceived benefits are sufficiently different to their original preferred selection.

It's a tough choice to make when balancing up the options, reading beyond the marketing spiel and selecting a new solution. But remember, at STRATGranat our industry experts have been on both sides of the debate on hundreds of different occasions and would love to share our experience with you to reach the best possible outcome whether as a Merchant or Solution Provider.