So, you don’t have time to run an RFP. Well, who does really?
Requests for Proposals are time-consuming affairs (the average RFP eats between 350 and 500 hours) and once you’re done, who’s to say you’re going to net any benefit?
When you’ve got a short turnaround time to obtain proposals from vendors and services suppliers, the RFP process can be an exercise in futility that demands more than it delivers. And you may not have those precious hours to expend.
In this blog, we’ll talk a little about why that is and then, a better way to undertake the process.
Time is money
Putting together an RFP is a major undertaking. It can take weeks or months to develop requirements. Then, there’s formatting. Next, you need to compile prospective suppliers and finally, collate and analyze responses.
But you know what? RFPs take up precious time on the supplier side, too.
And where’s the guarantee for suppliers that you’re not just fishing? Suppliers these days cast a jaded eye on RFPs coming through the door and may be less inclined to respond. That means you’re not getting a 360 of what’s out there.
Suppliers need to know that the RFPs they’re looking at are geared to building a better mousetrap. They need to know they have a chance at a successful bid and aren’t just spending valuable resources chasing a ghost.
Getting around RFPs with a GPO
A Group Purchasing Organization is the way companies like yours are bypassing the onerous RFP process, saving them human resources, time and money.
You don’t need to hunt down sometimes reluctant suppliers’ proposals with a GPO, because that work is already done. Because a GPO leverages the collective resources of its members, your buying power increases. You’ve got access to bulk purchasing you’d never have on your own – RFP or no RFP.
Savings and efficiencies
A GPO can save your company between 10% and 35% on indirect spend. By having access to better pricing because of the power of numbers (our members), you save money. But you also streamline your procurement function, making it more efficient and cost-effective.
No more time-consuming RFPs. No more complex negotiating process with multiple suppliers. Your GPO has that covered.
What’s more, your record of purchasing for the past year allows a GPO to forecast cost savings, helping you budget more effectively.
A GPO centralizes procurement. You’ll still make all the decisions that matter but your human resources’ hands will be freed to pursue more productive work. No more continual wrangling with suppliers to get the best price.
Puff yourself up
One of the great beauties of the GPO way of doing things is that your small or medium-sized business puffs itself up to the size of a much bigger company, gaining you the attention of big-name suppliers.
Because you’ve got the power of numbers behind you, you’ve got major league clout that brings you savings from top-drawer market players.
With CenterPoint Group, you can kiss RFPs goodbye. The power of numbers sets you free.