What is an RFP?
As a vendor looking to introduce your product into foodservice, what do these 3 simple letters represent? If you’ve done your homework and are prepared, it spells OPPORTUNITY.
An opportunity for high volume market growth. A chance for your product to be manufactured either under a foodservice distributors brand or a chance to bid on a GPO’s existing business.
So, what preparation is needed and how do you go about entering the RFP arena?
RFP Expertise To Help You GROW
RFP Key Terms
RFP/RFQ – Many organizations use Request for Proposal or Request for Information to determine which supplier to use. This can be a tedious process but done well it can result in a lot of new business or much better pricing and service, depending on your place in the process!
Private Label – Your product produced under the Distributors brand.
Here’s how we help turn RFP’s into new sales opportunities:
Prep work:
- Make sure you have all your basics covered from efficient manufacturing, to publishing of your products in GS1 (with images), to having an easily accessible/reliable storage facility and everything in between.
- It’s critical you know your exact cost as well as each component that makes up your cost.
Foodservice Distributor RFP’s:
- This is an opportunity to bid on the FS Distributor’s private label brand. The opportunity typically comes with existing high volume. This is where it’s very important to know your cost structure in advance so to bid with precision without giving the farm away.
- Most distributors have an RFP annual calendar with the varying product categories cycling through typically every 2-3 years.
GPO (Group Purchasing Organizations):
- This opportunity involves interaction with the actual GPO themselves with the awarded vendors product being distributed by the GPO’s designated FS supplier. GPOs like Dining Alliance, Foodbuy, Premiere, Avendra to name just a few of the larger ones.
- They too are done off a cycling calendar but don’t necessarily involve a private label.
Either opportunity comes with high volume and lower margins to the vendor. When making RFP awards, ideally, Distributors and GPOs should be looking for quality, competitive pricing, and sales support to create a win-win situation to grow market share. A win-win situation for you as the vendor, the distributor, and the operator.
You may have the best offer, however it’s critical your name and company become familiar with whomever is conducting the RFP. It’s important you become an insider.
If this sounds overwhelming or confusing, let Grow Foodservice assist you with the opportunity. We have extensive expertise not only with RFPs, but the behind-the-scenes processes and decisions made by the Distributors and the GPOs, including:
- Private label opportunities
- Knowing the distributors RFP bidding cycles
- GPO (Group Purchasing Organization) RFP opportunities
- Reviewing current contracts
- Negotiating win / win deals
Let us help you gain a better understanding of the process and have a leg up on the other RFP participants.
