The Cost of Skipping RFPs: Why Structured Supplier Selection is Key for Big Purchases

When your business needs to make a major purchase—say over $100,000—how do you make the decision?

While these methods may seem efficient, they often leave money on the table and open your business to risks that could have been avoided.

If you’re looking for a smarter, more strategic way to make big purchasing decisions, it’s time to consider a formal, structured process—one designed to drive competition, reduce costs, and secure better results.

What Is an RFP, and Why Does It Matter?

An RFP (Request for Proposal) is a structured process to identify and select the best supplier for your needs. Instead of relying on a quick quote or a sales pitch, an RFP allows you to evaluate multiple suppliers objectively, comparing them on critical factors like cost, quality, scalability, and long-term value.

For leaders focused on maximizing ROI, the RFP process is not just procurement jargon—it’s a strategic tool to ensure every dollar is spent wisely.

Why Many Companies Skip RFPs (And Why They Shouldn’t)

Companies without a procurement team often skip RFPs for a few reasons:

• Time constraints: RFPs can seem daunting without the right expertise.
• Lack of in-house knowledge: Knowing what to ask suppliers requires experience.
• Perception of complexity: Many think RFPs are overly formal or bureaucratic.

But the cost of skipping an RFP often outweighs these perceived challenges. For large purchases, a well-run RFP can uncover savings, secure better terms, and ensure you’re working with the right partner for your needs.

The Key Benefits of a Structured RFP Process

1. Unbiased Supplier Selection
   An RFP ensures suppliers are evaluated fairly, focusing on the best fit for your company—not just the best sales pitch.
2. Cost Savings Through Competition
   By inviting multiple suppliers to compete for your business, you’re more likely to get better pricing, value-added services, and favorable contract terms.
3. Clear Requirements Alignment
   RFPs help clarify what your company truly needs, avoiding mismatched solutions that can lead to costly adjustments later.
4. Risk Mitigation
   A structured RFP process identifies potential risks upfront, from supplier reliability to hidden fees.
5. Stakeholder Collaboration
   Involving internal stakeholders in the RFP process ensures the final decision meets operational and strategic goals.

If your company doesn’t have the resources or expertise to run a formal RFP process, outsourcing is the answer.

A partner like Wolfe Procurement can manage the entire RFP process for you, ensuring efficiency, transparency, and better results. From capturing requirements to evaluating suppliers and negotiating contracts, outsourcing RFP management eliminates the burden while delivering maximum value.