What is the BEST reason for having a formal request for proposal process?
What is the BEST reason for having a formal request for proposal process?
A formal Request for Proposal (RFP) process is important because it clearly identifies the risks and benefits before any funding is spent. This ensures that all potential issues and advantages are considered, leading to more informed decision-making and better resource allocation. By having a detailed understanding of the potential risks and benefits, the company can make more strategic and well-informed purchasing decisions.
B should be the correct answer " Informs suppliers a company is going to make a purchase" . informing supplier is the main goal of RFP . while business case where you identify risks
Also see B as correct answer. RFP is a supplier bidding process usally
Project Management Institute (PMI): The PMI emphasizes that a formal RFP process is crucial for clearly identifying the risks, benefits, and requirements of a project before any funding is committed. This ensures that all potential issues and advantages are considered, leading to more informed decision-making and better resource allocation (PMI, 2017).