Supply managers have several different titles for their requests for supply. I think of different types of requests as being on a continuum between a Request for Proposal (evaluation criteria is strongly or entirely weighted on the solution proposed) and Request for Tender (evaluation criteria is strongly or entirely weighted on price). While there are several commonalities between these requests, there is a “gray” area of difference between these types of requests. I prefer to title requests where the nature of the supply is clearly specified, price is strongly weighted and where there are significant criteria to be evaluated additional to price a Request for Offer.
So what’s in a title?
Consistency with expectations will avoid confusion and add value to your procurement. The potential respondent to your request will provide a better response when they have a clear understanding of what you are asking for within minutes of opening your request. The qualified and reputable respondent to a tender invitation immediately knows to analyze their cost to supply and focus on tendering a competitive price. If, however the invitation to tender does contain other, more subjective evaluative criteria that need addressing, the respondent may become frustrated and not respond. Everybody loses.
A request for proposal is asking for proposals to deliver a desired outcome. The request will contain criteria to evaluate the solution proposed by the respondent. Price will be one evaluative factor amongst many and may be minimally weighted. The respondent immediately knows from the document title to set aside enough time to address several factors in preparation of their response.
The Request for Offer is the “gray” area between requests for Tender and Proposal. The product and/or services is reasonably well defined, however the requestor wants to consider, experience, reputation and possibly some innovative or alternate solutions to provision of the product or service.
Attaching the right descriptive title to your request provides an immediate indication to the respondent of your expectations. The respondent will schedule their time accordingly. The clarity in your title adds value to everyone.
Rusty James Joerin, SCMP is a Supply Chain Management Professional and accredited by the Purchasing Management Association of Canada. He offers procurement services primarily to public sector organizations that do not have a professional supply manager on staff and provides additional capacity to assist with project related supply.
Information about his experience and qualifications may be found at:www.woodsgift.com
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