How to master the RFP process steps: A step-by-step approach

What is an RFP in sales?

The RFP (request for proposal) stands as a cornerstone of modern sourcing strategy, yet many organizations struggle to implement it effectively. Before diving into the mechanics of creating an RFP, let's establish a clear understanding of what does RFP stand for in business and identify when it makes strategic sense to initiate one.

What is the RFP process?

An RFP (Request for Proposal) is a formal document organizations use to request detailed proposals from potential vendors or service providers. What is an RFP process? It's more than just a call for bids; it's a structured, strategic approach to procurement that clearly communicates your business needs and expectations, allowing vendors to showcase how they can deliver.

The RFP process covers all the steps your team takes to create, distribute, collect, and evaluate these proposals. Done correctly, it enables transparent, apples-to-apples comparisons between vendors, reducing bias and supporting data-driven, strategic decisions.

Typically, the RFP process follows these key stages:

Gathering requirements and planning: Identify business needs, engage key stakeholders, and establish evaluation criteria before drafting the RFP.
Drafting the RFP document: Create a detailed document outlining project scope, requirements, timelines, and submission guidelines.
Distributing to potential vendors: Share the RFP with qualified suppliers who have the right experience and expertise.
Managing vendor questions: Provide timely answers to vendor inquiries to keep the process moving smoothly.
Receiving and evaluating proposals: Review vendor submissions based on pre-set criteria like technical capabilities, pricing, and strategic fit.
Selecting and negotiating: Choose the best-fit vendor and finalize contract terms.

Beyond facilitating vendor selection, an RFP also serves as valuable project documentation. It often includes technical specifications, business requirements, and expectations that guide both the selection process and future project execution.

Plan your RFP steps internally

Careful internal planning lays the foundation for a successful RFP submission. Organizations that invest time up front experience fewer delays and attract higher-quality vendor responses. Here are 3 RFP steps for you:

Identify business needs and goals

The request for proposal process starts by defining a clear problem and establishing project goals. Look beyond immediate needs to align the project with your organization's long-term objectives.

Document your current processes and technologies to help vendors tailor their solutions. Prioritize the processes that have the greatest business impact, and think about how the solution should scale with your projected growth.

Key questions to guide your objective-setting include:

How broad should investment expertise be?
What level of liquidity is required?
How do you define and measure risk?
What financial strength must vendors demonstrate?

The answers to these questions will guide your RFP development process and help you evaluate vendor proposals against metrics that matter most to your organization.

Engage stakeholders and subject matter experts

Successful RFPs require collaboration across teams. Early involvement from stakeholders and subject matter experts (SMEs) ensures your RFP reflects real needs and builds organizational alignment.

Key stakeholders typically include:

Procurement manager: Oversees the RFP and defines high-level needs.
Department managers: Share operational insights for more accurate requirements.
Executive team: Ensures alignment with strategic priorities.
Subject matter experts: Provide technical and strategic expertise.
Cross-functional teams: Bring diverse perspectives to RFP vendor evaluation.

Getting buy-in early also makes it easier to manage deadlines later, especially around vacations and busy periods.

Set a realistic timeline and budget

Work backward from your desired contract award date to create a realistic RFP timeline. Allow vendors 3 to 4 full weeks to respond, and factor in time for questions and evaluation. Build in buffer periods to handle unexpected delays.

When budgeting, account for internal resources, solution costs, and any recurring expenses. Most RFPs don't disclose budget information unless necessary, as revealing it too early can limit negotiation flexibility.

Finally, secure internal approvals before you launch. Having leadership consensus upfront prevents costly changes and timeline disruptions later.

RFP process steps: Creating and distributing the RFP

After planning your internal strategy, the next step in the RFP process is building the actual document. A clear, well-structured RFP helps in vendors procurement, encourages competition, and leads to better project outcomes. Understanding how to write an RFP effectively is crucial for success.

Define scope and RFP requirements clearly

The Scope of Work (SOW) is the core of RFP. It outlines the tasks, deliverables, and timelines you expect from the project.

To define your scope clearly:

Break the project requirements into specific tasks or phases
List all submission requirements with detailed descriptions
Provide a realistic timeline for each phase, along with the implementation process
Mention any standards, regulations, or technical requirements for meeting RFP standards

A detailed SOW acts like a roadmap for RFP system, minimizing confusion for both your internal team and vendors. You can also add a glossary of terms if the project uses technical language.

Write targeted RFP questions

Good RFP questions help you evaluate vendors based on their expertise, approach, and fit for your project.

Key areas to cover:

Project approach: Ask vendors how they will deliver the work and what tools or methods they will use.
Relevant experience: Request examples of similar projects, certifications, or qualifications.
Risk management: Find out how they plan to address potential challenges and security concerns.
Timeline and delivery: Confirm how they will stay on schedule.
Keep questions specific but open-ended so vendors can show how they stand out.

Include evaluation criteria and submission guidelines

Clear evaluation criteria make it easier to compare vendor proposals objectively. When creating your evaluation framework, focus on:

Technical expertise
Competitive pricing and cost-effectiveness
Timeline feasibility
Quality of deliverables
Customer support
Past performance and references

Assign point values or weights to each criterion to standardize scoring.

Also, define submission guidelines upfront. Specify proposal formats, deadlines, and delivery methods to make sure vendors follow a consistent process.

Distribute the RFP and manage submissions

After creating your RFP, the next step is sharing it with the right vendors and managing their responses. How you handle this phase can make a big difference in the quality of proposals you receive.

Select and invite vendors

Choosing who receives your RFP is just as important as writing it. The more qualified vendors you invite, the more competitive and cost-effective your proposals are likely to be.

Tips for selecting vendors:

Invite prequalified vendors who can meet your project needs
Only invite as many vendors as you can properly evaluate
Research vendors through industry reports, case studies, and trusted directories, not just Google
Personalize your invitations to show you’ve done your homework

Send individual emails, not mass blasts. Contact the right person, usually someone in sales, marketing, or business development, to make sure your RFP reaches decision-makers.

Answer vendor questions fairly

The committee chair is typically responsible for answering proposers' questions received during the RFP response process. First and foremost, establish a clear process for handling inquiries, as transparent vendor communication is essential for receiving well-crafted responses.

Set a bid deadline for accepting supplier questions approximately two weeks prior to the RFP close date, and aim to answer questions within 24 hours whenever possible. Thereafter, ensure all suppliers can see both questions and answers, either through an electronic RFP software system like Jaggaer or via a manual addendum posted to your bid board.

Keep in mind that the last respondent's question must be answered at least 10 days before the close of the RFP, or else an extension will be required. This timeline gives vendors sufficient opportunity to incorporate clarifications into their proposals while maintaining fair competition.

Track and manage RFP submissions

Managing RFP submissions properly keeps the process organized and fair. While spreadsheets can work for small projects, using RFP project management software makes it easier to track responses, collaborate with your team, and send reminders.

Look for tools that offer:

Centralized proposal storage
Automated reminders to vendors
Real-time progress tracking
Integration with your existing systems

Before evaluation starts, set up a scoring rubric based on your RFP criteria. Scoring vendors against the same standards offers vendor comparison, risk reduction, and speeds up decision-making.

Finally, document all vendor communication and evaluation decisions. A clear audit trail protects your process and can help if any questions come up later.

Here is a great read from Proqsmart on how to use data analytics to enhance your RFP strategy.

Scoring proposals using a rubric

A clear scoring system is key to evaluating vendors fairly. Start by creating a rubric that lists and prioritizes important criteria like solution fit, cost, experience, service levels, and timeline. Assign a weight to each factor based on how important it is to your project’s success.

For example:

Solution fit (30%)
Cost (25%)
Vendor experience (20%)
Timeline (15%)
Innovation (10%)

Use a consistent scoring method, either numeric (like 1–10) or descriptive (Poor, Fair, Good, Excellent). Structured evaluations help remove bias and make it easier to compare vendors side-by-side.

Involve key stakeholders from departments like IT, finance, and operations in the scoring process. This ensures that you consider all perspectives and choose a vendor for issuing RFP that meets cross-functional needs.

Shortlist and conduct interviews or demos

Once you score all the proposals, create a shortlist — usually 3–5 top vendors — that meet your basic requirements.

Then, schedule meetings or demos to:

Clarify details in their proposals
See product or service demos in action
Address any concerns about pricing or capabilities
Evaluate their communication and responsiveness

After the demos, hold a team debrief to discuss each vendor’s strengths and weaknesses before making your final decision.

Final contract negotiation

Before signing a contract, complete final due diligence. Check vendor references, review financial stability, and have legal teams review contract terms carefully for a complete proposal evaluation. Poorly defined contracts cause over half of project issues, so getting this part right is critical.

During negotiations, focus on:

Deliverables and specifications
Pricing structure and payment terms
Timelines and milestone deadlines
Performance standards and service level agreements (SLAs)
Early payment discounts
Transportation or additional costs (if applicable)

If a vendor tries to back away from the terms they originally proposed, be ready to move to the next candidate.

Once the contract is signed, inform all participating vendors of the outcome – both those selected and those not. Finally, archive all RFP documents and collect feedback to improve your process for future projects.

Post-RFP activities and vendor onboarding

Choosing a vendor isn’t the end of the RFP process, it’s just the halfway point. What happens after selection often determines whether your project succeeds. Proper post-RFP steps help set expectations, build strong relationships, and ensure long-term success.

Notify all vendors of the outcome

Once you’ve signed a contract with your chosen vendor, notify all vendors about the outcome.

For the selected vendor, send an RFP award letter that outlines the decision, next steps, and any pending details. Avoid using words like “won” or “winner” until everything is finalized.
For vendors who weren’t selected, send a polite rejection letter. If possible, share brief feedback to help them improve. This professionalism encourages vendors to work with you again in the future.

Set up performance tracking and KPIs

Vendor management starts right after selection. Set up a schedule for regular performance reviews (every six months or once a year) to keep your partnership on track.

Establish clear KPIs to measure success, such as:

Compliance with contract terms
Service quality and reliability
Return on investment (ROI)
Innovation and improvements
Customer support effectiveness

Also, document how you’ll measure these metrics. Setting expectations early helps prevent performance issues later.

Archive documents and gather feedback

Proper document archiving creates an important audit trail for future reference. First of all, ensure all RFP data and documents are properly leveraged before closing the project. If using RFP software, documents are typically stored automatically. Otherwise, manually update vendor profiles, archive decision documentation, and save your RFP template.

Meanwhile, collect feedback on the RFP process itself from both internal stakeholders and vendors. This intelligence proves invaluable for improving future sourcing initiatives. Consider sending surveys with questions about where your team sees room for improvement. In particular, ask vendors about their experience with your RFP process, they're experts in their fields and can offer valuable insights for streamlining future solicitations.

How to improve RFP process

To further enhance your RFP process, consider incorporating these additional elements:

Do thorough market research: Understand your options before issuing an RFP.
Use e-sourcing tools: Automate document sharing, vendor communication, and proposal tracking.
Align stakeholders early: Get all decision-makers on the same page to speed up evaluations.
Focus on vendor qualifications: Check experience, financial health, and track records.
Consider total cost of ownership: Look beyond the initial price to future costs like maintenance and upgrades.
Encourage innovation: Ask vendors for creative solutions that could add unexpected value.
Build a detailed Service Level Agreement (SLA): Set performance expectations and consequences clearly.
Prepare for negotiations: Know your must-haves and potential compromises.
Plan onboarding carefully: Help new vendors integrate smoothly with clear steps and communications.
Analyze spend regularly: Review costs and identify ways to save money in future RFPs.

Stop letting RFPs drain your sales team

RFPs are often viewed as a necessary burden. But for high-growth sales teams, they’re also a high-stakes opportunity to stand out. The problem is that most teams still rely on outdated processes that slow down deal cycles and overload presales resources.

SiftHub helps you change that.

With SiftHub, your team can manage complex RFPs and buyer questionnaires without the chaos. It gives AEs, SEs, and SMEs one place to collaborate, reuse high-quality answers, and get real-time help from AI that actually understands your business context.

No more chasing down responses. No more burning cycles on repetitive work. Just faster, more strategic selling.

If you want to win more RFP-driven deals without stretching your team thin, it’s time to modernize your process.

👉 See how SiftHub eases the RFP process for you.