Discover how $4.4-billion of combined spend is managed by sourcing professionals in Bonfire
(KITCHENER, ONTARIO, November 15, 2018) – Bonfire, a leader in strategic sourcing and procurement technology, has launched the 2018 State of the RFP, a benchmark report for sourcing and procurement professionals. The report explores benchmark statistics for RFP Setup, Vendor interaction, Evaluation, and Decision-Making.
Findings are based on data collected from the Bonfire cloud-based strategic sourcing platform. The sample size included 6,600 RFP projects that were conducted at 190 organization across North America. The study comprised $4.4-billion in combined spend.
“More often than not procurement professionals tell me they want to streamline sourcing activities, but don’t necessarily understand where to start or how to fine tune their processes to align with best practices,” said Corry Flatt, CEO of Bonfire. “In this report, we define the typical RFP and provide insight into trends that are emerging as the RFP continues to be leveraged to make complex spending decisions.”
The 2018 State of the RFP offers insights to questions such as:
- How much information should I put in my RFP?
- How many submissions are typically received?
- How much time should it take to run an RFP process?
- Does running an RFP truly save my organization money
The report discloses that the average duration of an RFP in the public sector (from proposal to awarded contract) remains open for less than two months. Additionally, there is an early indication of a trend towards more evaluation groups; in 2015, projects with 4 or more evaluation groups comprised of only 14% of total projects. By 2017, that number had risen to 19%. This trend may indicate that cloud-based tools are enabling increased collaboration among teams and improved communications. When it comes to pricing, the average price spread for public organizations in an RFP is 38%, although a trend of tighter spreads is emerging as the average price spread tightened slightly by 2% from 2015 to 2017.
How to leverage The State of the RFP Report
Through the data outlined in the report, procurement professionals gain a unique window into the sourcing activities of other organizations, against which they can compare their own process. By doing so, procurement professionals can determine how they align with benchmarks, gain insight into areas where further optimization might improve their workflow, and equip themselves to better demonstrate the value that procurement delivers to their organizations.
The report is available today at www.gobonfire.com/2018-state-of-rfp. A live webinar with Bonfire executive Omar Salaymeh will provide a deep dive into key findings on December 12 at 1:00pm ET. Register for the webinar at www.gobonfire.com/state-of-rfp-webinar.
Bonfire, a leader in strategic sourcing and procurement technology, empowers organizations to make the right purchasing decisions. With tools to support the entire vendor lifecycle (sourcing, contract management, and vendor performance), Bonfire goes beyond traditional mechanics of standard procurement suites to make complex decision-making easy. The combination of flexible technology and world-class customer service makes Bonfire the solution of choice for both public and private sector organizations of all sizes around the globe. Bonfire was named a 2018 Gartner Cool Vendor and proudly reports a client retention rate greater than 96 percent. www.goBonfire.com
Manager, Marketing Communications