RFP Challenge

Building the Perfect Relationship Center: Decoding the RFP Challenge

After years as a supplier, I decided to contribute to help in this exhaustive and complex process of opening a bid. In this article, I will deal with the concepts behind this document, the quality of information, the objectives and the impacts of a failed process. I separated these subjects into the following topics:

• What is RFP, RFI, and RFQ?
• Information, requirements and specifications
• Deadlines, risks and objectives

I want to take this opportunity to highlight that any contribution will be very welcome. After all, the objective is to create an information-sharing movement that helps us all.

Contracting services is not always an agile and assertive process. However, some resources facilitate supplier selection and provide contractor security. This is the case of RFPs, RFIs, and RFQs. You’ve probably heard of these acronyms, but do you know how to tell them apart? When is the right time to use them?

What is RFP, RFI, and RFQ?

Several articles and pages dedicated to the subject soon appear when searching for definitions in search tools. On the website of Benner1, a business management software company, I found an essential point of view that addresses definitions well; I only included some information:

RFP, RFI and RFQ, in addition to being fundamental for companies to receive what they need, are essential phases in managing the life cycle of contracts. Good contracts depend on good management; this is even more relevant in the legal organization. A structured selection assessment demonstrates impartiality and better compliance with compliance principles, eliminating much of the risk when choosing the right partner. Next, check out a brief definition of each of these steps:

• The RFP (Request for Proposal) compares: RFP responses evaluate the merits of each supplier compared to others. The RFP provides a structure for deciding whether to hire or not, allowing the risks and benefits of each supplier to be identified, making it easier to find the most appropriate solution for the company. A poorly drafted RFP can lead to a wrong and harmful decision.
• RFI (Request for Information) educates: RFI responses explore how a supplier can solve a problem or meet a need. The objective is to know precisely what services the partner can offer.
• The RFQ (Request for Quotation) quantifies the concept of the request for quotation as an invitation to identified and approved suppliers to participate in a bidding process. The RFQ is used when the specifications of what you want to contract are known and when there is knowledge about the capacity and quality of the invited suppliers. In the Contact Center world, the RFQ is the least used. During my journey, I witnessed it being used in budget moments and to filter the list of suppliers, excluding the lowest and highest quotes for future RFP processes.

Information, requirements and specifications

After responding to hundreds of RFPs, I noticed there is no standard in the Contact Center segment and probably not in other segments. The point here is not whether the RFP will be sent in spreadsheets or documents or whether it will be entered into a procurement portal. The point here is the content. What information is needed? Why are they necessary? Why are specifications necessary, and what is the impact of not having them?

Before continuing, I need to go back to the process a little. When an RFP is opened for the market, I mean a serious and suitable process, the contractor seeks quality improvements, cost reduction, and innovation, whether to change suppliers or outsource what is in-house.

Why do suppliers request hundreds of clarifications, and others send half a dozen questions? Or worse, why do some decline the process?

There are dozens of answers to this question, but let’s look at the most relevant ones. Those who request a lot of information are really interested in the opportunity; the rest are either not interested or are taking too many risks that are not good for anyone. Believe me; no experience guarantees assertiveness; each contractor has their needs and specificities in the timeline. Another point is suppliers who decline the RFP. This happens due to the lack of information that can be interpreted as a fake process; that is, there is no true intention to change. They may also occur due to the supplier’s low competitiveness, for example, a supplier that does not have know-how with billing operations. Or, which is also not uncommon, the lack of resources to send a proposal.

Therefore, the information, requirements and specifications are fundamental for both parties, contractors and contractors. In a Relationship Center RFP, there is no way to escape detail, quality and alignment. In short, we have at least the following chapters that must be broken into subchapters:

• Registration and qualification documentation;
• Commercial and contractual specifications;
• Governance and support;
• Operational characteristics;
• Channels and omnichannel;
• Systems
• Technology
• Infrastructure

In a quick analysis, I identified more than 60 topics that should be explored in the chapters above and can impact the efficiency of an RFP. If necessary, we can discuss these topics further. In fact, it is not a question of bureaucracy; a relationship center outsourcing process must be thorough; it will never be simple.

Deadlines, risks and objectives

Deadlines often made me cringe as a supplier, not because we would have to work 16 hours a day without lunch, holidays and weekends, but simply because of the risk of a proposal of questionable quality. A bad proposal is not an option for a salesperson passionate about providing a good experience for their customers. “We are what we repeatedly do. Excellence is not an act, but a habit.” – Aristotle. It may seem strange or a supplier problem, but most contracted companies invest much more in operational structures instead of large sales and pre-sales teams, in the end, if there is no balance, everyone will be impacted.

Given this scenario, the RFP must be written and specified so that suppliers have the same understanding as customers. Furthermore, the deadline must be aligned with the needs of both parties. Seems obvious, doesn’t it? This is not what happens in practice. I’ve had the opportunity to sell IT solutions, software, office furniture, tax consultancy, nothing is as complex as a Technical Commercial Proposal for Relationship Operations. Disagreements are frequent and generate catastrophic risks for everyone involved.

Imagine that companies define a product and service strategy, define the experience strategy that will be delivered to their customers, and invest millions to position themselves. When delivering one of the main points of interaction with their consumers, they frustrate expectations. The customer spends hours or days in service queues; there is no solution to their problems, no consistency between channels, unprepared people on the other side, and technology hinders instead of helping, in short, a disaster. The culprit here is not the contractor or contractor; the point here is the process, the culture, and the day-to-day routine that consumes attention to detail. I believe that with due focus, there is still much room for improvement.

In my opinion, the complexity, speed of change, behaviour, and legislation, among other factors, make relationship centers an almost impossible daily challenge to avoid problems, difficulties and risks. The worst thing is that this challenge impacts companies, employees and consumers. Mitigating these risks and impacts starts with the decision to outsource or keep operations in-house. This decision can be duly supported by an efficient RFP process, where the contractor can evaluate the market capacity compared to its own capabilities and thus seek quality improvements, cost reduction and innovation. The relationship between customers and suppliers facilitates the exchange of information between companies but does not standardize the relationship with the market.