How to write a request for proposal (RFP) [+ free template]

When it comes to building a sustainable supply chain, you can’t expect every supplier to be a winner. You’ll need to be strategic in your supplier selection, and that process begins with a request for proposal (RFP).

RFPs are more than just administrative documents—they’re strategic tools that can help you attract top-tier suppliers and secure optimal outcomes. We’ll delve into how to craft compelling RFPs, break down essential components and best practices, and provide an RFP template to help you select your next supplier.

RFP template

Want to streamline your procurement process? Download our free RFP template to get started. This customizable template will help you create professional and effective RFPs that give potential suppliers all the info they need to best support you.

What is a request for proposal (RFP)?

A request for proposal is a formal document used to invite bids from qualified suppliers for a specific project or service. By issuing an RFP, organizations can clearly communicate their needs and expectations to potential suppliers, ensuring a fair and competitive bidding process. 

RFPs typically outline:

• The scope of work
• Deliverables 
• Timelines
• Budget constraints
• Evaluation criteria

The RFP process is a valuable sourcing strategy for identifying the most suitable suppliers, negotiating terms, and mitigating potential risks. By carefully crafting and issuing RFPs, organizations can streamline their procurement processes while reducing costs and improving the overall quality of goods and services.

RFP vs. RFI vs. RFQ

When organizations need to procure goods or services, they often use three key tools: requests for information (RFIs), requests for quote (RFQs), and requests for proposal.

An RFI is a preliminary step to gather information from potential suppliers. It's a strategic tool used to assess market capabilities, identify potential suppliers, and gain insights to shape project requirements.

An RFP is a comprehensive document that outlines specific requirements, deliverables, timelines, and evaluation criteria. It's used for complex projects that require a strategic approach. RFPs help organizations attract the best suppliers for the best outcomes.

An RFQ is used when an organization has a clear understanding of its needs and is primarily focused on price. It's a formal request for suppliers to submit their best price for a specific product or service. RFQs are typically used for standardized, commodity-like items, like office supplies or generic software licenses, where price is the primary decision factor.

How to write an RFP

Crafting a winning RFP is the first step toward a successful procurement process. A well-structured RFP not only attracts the right supplier but also minimizes future back-and-forth and misunderstandings. It sets the stage for a smooth and effective working relationship by clearly outlining your organization's needs, expectations, and evaluation criteria. 

While RFP components vary by industry, here’s a brief overview of the basic elements you should include:

1. Provide a business overview

Kick off your RFP by introducing your organization. This company overview should provide a clear and concise picture of who you are, what you do, and why you're seeking a supplier. Be sure to highlight your company’s mission, vision, and core values.

For example, if you're a tech startup, you might highlight your innovative culture, recent successes, and commitment to cutting-edge technology. If you're a traditional company, you might emphasize your long history, industry expertise, and strong customer relationships. Remember, the goal is to attract qualified suppliers who align with your company's goals and values.

2. Define your project needs and goals

A well-defined project is essential for a successful RFP. Clearly communicate your project's objectives, deliverables, and desired outcomes. Be specific about the problem you're trying to solve or the opportunity you're seeking to capitalize on.

For instance, instead of simply stating, "We need a new software system," specify the exact functionalities you require, such as project management, customer relationship management, or financial accounting. 

3. List requirements and expectations

Once you've defined your project needs and goals, it's time to outline your specific requirements and expectations. This section should detail the technical specifications, performance standards, and quality control measures you expect from potential suppliers.

Again, be as specific as possible. For example, if you're looking for a web development firm, you might specify the programming languages, frameworks, and design standards you prefer. Clear and detailed requirements help suppliers understand your vision and submit proposals that meet your exact needs.

4. Provide a statement of work (SOW)

A well-crafted statement of work (SOW) is the backbone of any procurement contract. It provides a comprehensive overview of the project, including:

• Specific tasks
• Deliverables
• Timelines
• Project milestones
• Key decision points
• Roles and responsibilities
• Payment terms and conditions
• Performance metrics

For example, if you're hiring a marketing agency, your SOW might include tasks like conducting market research, developing a marketing strategy, creating social media content, and managing email campaigns. 

Be sure to specify the expected deliverables for each task, such as a detailed marketing plan or a monthly social media report. This section should be detailed and clear, with no room for ambiguity.

‍5. Call out potential challenges

‍No project is without its challenges. By proactively identifying potential risks and challenges, you can demonstrate your foresight and make sure your suppliers are prepared to address them. This might include issues like:

• Data security
• Regulatory compliance
• Supply chain disruptions
• Unexpected project scope changes
• Resource limitations

For instance, if you're outsourcing IT services, you might highlight the importance of protecting sensitive customer data, ensuring compliance with industry regulations like GDPR or HIPAA, and maintaining business continuity in case of system failures or cyberattacks. 

By addressing these concerns upfront, you can encourage suppliers to propose robust solutions and mitigate potential risks.

6. Set your evaluation criteria

You’ll need to establish clear and objective evaluation criteria to make sure the evaluation process is fair and transparent. Evaluation criteria are the standards or benchmarks used to assess the quality, performance, or suitability of a product, service, or supplier.

These criteria should align with your team's goals and priorities. Consider factors like:

• Supplier experience and qualifications: Does their past experience align with your company’s unique needs? Look for relevant experience, certifications, and a track record of success.
• Technical capabilities: Are they already familiar with the software you use, or are they willing to learn? Assess their proposed solutions and their team’s skills.
• Financial stability: Are they financially sound? Check their bank references and online reviews and ratings to gauge their financial health and ability to deliver.
• Project management expertise: Can they keep things on track? Look for experience managing similar projects, project management methods, and risk management plans.
• Cost and pricing: What's the price tag, and is it worth it? Consider their pricing structure, cost-effectiveness, and the value they bring to the table.
• Quality assurance and customer support: How will they keep things running smoothly? Look for their quality control processes, service level agreements, and how responsive they are to client needs.

By knowing what to look for and what RFP questions to ask, you can objectively compare proposals and select the best partner for your project.

7. Provide submission instructions

To make the submission process easy for suppliers, provide clear submission instructions. This section should outline the specific format and content requirements for supplier proposals. Include the following:

• Deadline: When are proposals due?
• Format: How should they submit their proposal (email, online portal, hard copy)?
• Content: What specific information should they include?
• Organization: How should they organize their proposal?

By setting clear rules, you can ensure all suppliers submit proposals that are easy to compare (and quickly weed out who isn’t paying attention to instructions).

Next steps: How to leverage your RFP

Once you’ve finalized your RFP, it's time to share it with potential suppliers. You can distribute it through different channels, such as email, your company's website, or a dedicated procurement portal.

After you ship your RFP, be prepared to:

• Respond to inquiries: Address questions and provide clarifications promptly.
• Set deadlines: Establish clear deadlines for proposal submissions and responses.
• Review proposals: Compare proposals against your evaluation criteria.
• Conduct interviews or presentations: Invite shortlisted suppliers for further discussions.
• Select a supplier: Make a final decision based on your evaluation.

By managing the RFP process smoothly and using the right supplier management tools, you'll find the best supplier in no time.

RFP example

The following is a comprehensive RFP template tailored for a marketing campaign, providing a clear framework for potential vendors to respond to. It outlines project objectives, deliverables, evaluation criteria, and submission requirements.

Best practices for writing an effective RFP

Crafting effective RFPs takes practice, but here are a few tried-and-true tips to elevate your proposals: 

• Be concise: Use clear and concise language to avoid confusion. Avoid jargon and technical terms that may not be familiar to all suppliers.
• Stay flexible and adaptable: Be open to feedback and willing to make adjustments to the RFP as needed. Consider incorporating supplier suggestions and feedback.
• Invite innovation: Use positive language and create a sense of opportunity. Encourage suppliers to submit innovative and creative proposals.
• Encourage questions: Establish a clear process for suppliers to ask questions. Encourage questions to make sure all suppliers have a clear understanding of the requirements and respond to inquiries promptly and professionally.
• Be fair and transparent: Treat all suppliers fairly and impartially. Clearly communicate the evaluation process and selection criteria and provide timely feedback to all suppliers.

Simplify your RFP process with Zip

RFPs are a critical part of the procurement process, but even with all the tips and RFP templates we provided, they can be time-consuming and complicated.

Zip can help you make your RFP process a whole lot easier. Our procurement automation software can help you create professional RFPs, manage supplier responses, and make data-driven decisions about your selection. Request a demo and discover how Zip can streamline your entire procurement process.