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RESPONSE TO RFIs/RFPS

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  • #36553

    chhabra
    Participant

    HI
    Can any one help me regarding the RFIs/RFPs?I want to know how can we measure the quality of respone to RFIs/RFPs.and also what are the characteristics ,looking at which we can rate the response to RFIs/RFPs as “GOOD”.Pls reply as early as possible.

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    #105774

    Nitin Sahni
    Participant

    I presume you mean Request for Information / Price by RFI / RFP.
    CTQ’s for RFI / RFP could be timeliness, accuracy and completeness at a macro level. To qualify any RFI / RFP as good it must meet customer defined criteria on these parameters, hence you need to put target value against these parameters (from customer’s perspective) for example what would be completeness from customer’s point of view.
    Hope this is helpful to you..
    Nitin Sahni

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    #105776

    chhabra
    Participant

    Hi Nitin
    Thnx for the response.Can u throw some more light on the topic.Like I have heard of a term called ‘Conversion Ration”.can u tell me how this canm be use ful in judging the quality of RFI/RFP.
    Amit

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    #105785

    KBailey
    Participant

    Is RFP “Request for Price” or “Request for Proposal”?
    Nitin Sahni’s proposed CTQ’s of timeliness, accuracy, and completeness should all be used. However, you mentioned conversion ratio, which is one of the most important metrics to your business – the other being profitability of the deal (a high conversion rate doesn’t help if you’re losing money on the deal). You could go with a single, high level process quality metric of Gross Profit per proposal.
    To determine if a specific RFP is good or bad:

    If you submit a proposal and don’t get the deal, that’s a defect
    If you get the deal but it’s unprofitable, that’s a defect
    If you get the deal and it’s profitable, but you only captured a portion of what you could have, that’s probably not a “defect” but it’s still lost opportunity
    Part of what you really need to get to is this: did your RFP process assess the customer’s true needs, the opportunity for you to meet those needs, the cost of meeting those needs, and communicate to the customer how you will meet those needs. Closure rate and profitability metrics will reflect this, but they’re not enough to tell you where you’re missing opportunities.
    Timeliness, accuracy, and completeness will help identify some areas of failure, but you really need to get to metrics for details like did you even understand what the customer needed and were you dealing with the right decision-makers. This is where it helps to know who/what the customer chose and why, and what their satisfaction level is. It also comes partly from tracking customer satisfaction on the deals you win. The results of processes like your RFP/Proposal often don’t show up until later.
    I hope this helps…

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    #105821

    chhabra
    Participant

    Thnx to all for info.Can u please give me some idea on the following question:-
    What are the important parameters w.r.t. responding to RFI/RFP thatshould be controlled in order to ensure that a response in “good”?
    Regards
    Amit

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    #105824

    KBailey
    Participant

    Amit,
    This is going to depend a lot on your business. Factors to control:

    Pricing structure. At least have some rules in place.
    Sales/negotiation policies, procedures, and training. It’s a challenge, because of the nature of the complex interaction between your proposal/rep (contollable factors) and the customer (uncontrollable factor)
    Procedures for researching customer and assessing needs/opportunities (include Kano analysis)
    I don’t know if this applies for you, but if you’re having trouble maintaining margins, I suggest looking for ways to add more value profitably (or sell features/benefits) before giving up pricing. Again, Kano can be very helpful to successfully differentiate yourself from your competition.
    kb

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