Many software selection processes start with a Request for Proposal (RFP). The RFP process is amethod for evaluating and selecting vendors for software and technology purchases. It’s a structured approach that can help ensure that the software solution meets the organisation’s needs, and – when well-managed – can help organisations avoid costly mistakes and ensure they get the best value for their money.
However, the RFP process can also be flawed. Following a formulaic approach can result in missed tenders from technology partners who may have the perfect solution for your operationalchallenges and goals, and who, critically, are willing to take you beyond your immediate needs and evolve with your business.
Phil Turton, Managing Director, Viewpoint Analysis and Gary Taylor, VP EMEA Fleet Sales, Descartes, share their advice for warehouse and logistics organisations on how to elevate the vendor selection process beyond the RFP, and set your software investment up for long term success…
Broken practices
According to a recent survey from Lupio, 35% of companies who receive a Request for Information (RFI) or Request for Proposal (RFP) decline to bid. This growing trend is indicative of both a gap between procurement teams and the willingness of potential vendors to participate, as well general shortcomings in traditional processes.
“There is without doubt a need for change in the vendor selection process,” says Gary Taylor. “Your traditional ‘one-size-fits-all’ approach is generally becoming less effective as there is a convergence – on paper at least – of features and functions, whereas many businesses are not just looking for the right software, but the right partner who can demonstrate an understanding of the intricacies of the logistics industry as well as offer a tailored solution that is reflective of an individual organisation’s business model, size and specific operational complexities.”
Viewpoint Analysis, a specialist organisation in the field of enterprise technology selection, advocates a novel five-step approach, starting with casting the net broad and deep during the initial market assessment, including recognised “major players” as well as industry-specific “niche” vendors. Phil Turton is also keen to emphasise the need to engage with sales teams at your selected ‘long list’ – but not through an RFP. “You should be telling your chosen vendors at an early stage, why you want them to be involved; provide them with your specific challenge statement and ask them what they can bring to your organisation uniquely.”
Narrow down and act quickly
Another constraint in traditional RFP tender processes is time. While there is a lot of variability depending on the size and scope of the technology project, end-to-end RFP processes can last anything from six weeks to multiple years. “A fundamental mistake many businesses make is that they let the selection process become the project itself,” says Turton.
Not only does this distract from the business’s vision for the software selection, but the longer the RFP process takes, the more likely it is that the organisational goals will shift – and there will be an ultimate mismatch between what the business sought to achieve and what can actually be delivered.
For this reason, Turton advises prompt and decisive action – once proper due diligence has been done. “Where you want to ‘go long’ on the long list, it’s as important to ‘go short’ on the short list,” he says. “Don’t bring vendors in simply to make up numbers, because this is where you want to spend the real time with a potential technology partner.”
Holistic approach
At this point in the process factors like collaboration, flexibility, and vendors’ long-term partnership potential become key. Both Turton and Taylor emphasise the important of companies engaging in deeper conversations with vendors to better understand their capabilities, industry knowledge, willingness to support the evolving needs of your business – as well as their own business strategy.
This includes considering the software’s ability to scale with the business and its compatibility with other systems in use. They also stress the importance of conducting a thorough needs assessment within the company, ensuring that all relevant stakeholders are involved in the process and that all operational requirements are addressed.
Taylor comments: “Logistics software is often integrated with other systems like inventory management, billing, supply chain, and transportation management, so it’s important to select a proven and reliable vendor that understands the full breadth of the business and can offer a comprehensive solution that integrates smoothly with other technologies and other departmental needs.”
Adding: “Technology vendors want to know why you’re talking to them. A true partner will also want to share their wealth of knowledge and experience from previous projects – they may even be able to support in looking beyond your initial project scope and suggest additional operational or process enhancements, co-creating a business case that will add greater value down the line.
“Basically, it’s about finding a technology partner who is willing to put skin in the game,” he concludes.
Conclusion
Selecting the right logistics software requires more than just going through the motions of issuing formal documents. It requires a strategic and thoughtful approach that includes understanding your company’s unique needs, engaging with vendors beyond the RFP process, and seeking out long-term partnerships that can evolve with your changing requirements.
The goal is not just to find the right software, but to establish a relationship with a vendor that will continue to add value over time as your business grows and changes.
