A Better Way to Write an RFP

Lindsey Tanner of CoreXpand offers a new way to think about the vendor selection process

(PRWEB) January 21, 2005 -- Separation: Every year, companies go through the laborious process of finding new vendors, as they continually search for better products, lower prices and improved service. Often, the questions they ask in their RFPs center on technology issues: ordering process, transaction engine, e-pay options, approval & expense tracking systems, and a myriad of others. According to Lindsey Tanner, founder and CEO of CoreXpand, this is a mistake.

Whenever a company chooses a vendor based on their technology tools, theyre tying themselves to those tools for the duration of the relationship. If they want to change vendors, they have to replace their technology as well. This can be unnecessarily disruptive to a companys overall system. Your technology should be viewed as your storefront: do you really want to change that--plus everything that goes with it--every time you replace a vendor?"

Mr. Tanner suggests a system where the vendor and the technology tools are separate: Often, vendors and their technology arent equal. You may love your vendor, but hate the tools they bring into the relationship. If their technology doesnt do what you need it to, then its not a good relationship. What if you could have the best vendors in the world plus the best technology tools? The only way to do that is by separating the two out."

Focus On What Matters: Another problem Mr. Tanner sees is the inequality among departments. All departments dont look at a specific vendor in the same way because they have different needs. The technology tools that work for sales & marketing may not work for purchasing. A vendor that purchasing likes may not be creative enough for sales & marketing. By separating your vendors from your technology, you free up your options. Now you can select the vendors that work for each department, and bring them together under one technological roof that works for everybody--so everyones happy and no one loses.

Now your RFPs can reflect what matters most to you: product, price, service. When you want to change a vendor youre not happy with, you can do so without changing your technology, which, hopefully, you are happy with."

The reason Mr. Tanner is so confident that this is the best way to solve the vendor selection problem is because hes been on the distribution side of the channel himself. For over a decade, he owned and operated a successful distributorship in the promotional and incentives merchandise industry. Then, in 1996, he began working on a transaction engine that would simplify the supply chain process. The result led me to start a company that would provide the technology tools needed to run an entire supply channel--tools that wouldnt disrupt a companys present system, wouldnt require IT involvement, and, most of all, wouldnt be controlled by suppliers. The difference our technology has made in the companies weve helped is incredible.

Another thing companies need is the ability to leverage their vendors. The reason why companies think they want their vendors to provide the technology needed to run their channel is because they dont want to have to pay for it. But that makes the company overly dependent on their vendors. Your technology is the foundation of your supply system: I dont think you want to put that in the hands of vendors--whose core business is not technology--do you? Vendors pass the cost of the technology they provide on to their customers anyway; so, in reality, youre better off having your own system. And, if nothing else, it helps keep your vendors competitive."

More Than Just Technology: Not only does Mr. Tanner believe that experience and technology are important; he also believes its essential to have a network of vendors that can quickly and easily replace or supplement a companys present suppliers. You may be happy with the vendors youre currently using. Thats great; but you may also need some new sources, in which case youll need a network of suppliers in all product categories and, preferably, ones that can save you 15-25% on your present supply spend. Plus, youll want to be able to plug them right into your system. Most companies arent in a position to leverage those kinds of savings, nor do they have a flexible enough system to be able to just plug new vendors into it. To do that, you need to be part of a large buying group and, again, you need to have your own free-standing technology."

Mr. Tanner is quick to point out that he is not a vendor or supplier; nor is he just interested in the technology side of the supply channel system. I believe in being an ally and partner to any business I work with. Whats the point of just solving technology problems? Theres no real satisfaction in that. But, when I can work with a company personally to help them solve their problems across-the-board--then I feel like Ive done something that will make a difference in the long term."

CoreXpand is an e-commerce solutions company located in Atlanta, GA, whose main focus is helping their clients increase sales and reduce costs via the Internet. To contact Mr. Tanner or for a free sample RFP, please call 678-220-2009 or e-mail ltanner@corexpand.com.

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