What Is RFx Software? (+ Examples, Benefits, Tools)
- August 29, 2022
No business is an island – small companies and larger enterprises alike rely on external goods and services to get work done. This means a large portion of the workforce spends their days sending or receiving requests, crafting responses to requests, or both.
In the past, this work has been accomplished via email and phone calls, using clunky spreadsheets and manually-organized document folders to keep track of everything. The clutter and the time add up quickly.
With more and more tasks being added to employee workloads everywhere, the need for software that facilitates the procurement process is growing. Many solutions have arisen that handle tasks on either the requesting or the proposing end of things – incorporating automation and custom tools to help teams source necessary materials and purchase services or craft successful proposals.
What is the best RFx software in 2022?
- Precoro
- Content Snare
- Loopio
- Avnio RFx
- RFPIO
- Expedience Proposal Software
- Penny
What is RFx Software?
RFx software is software designed to manage the entire RFx process – from aiding professionals creating requests to vendors and/or responses to the requests they receive. These solutions use tools like template libraries, automatic responses, and even AI to make procurement and bidding processes more efficient.
If your business is still handling procurement manually, your processes are likely leaving plenty of room for improvement.
5 Types of Requests
Across industries, common requests for goods or services are grouped into a few different categories depending on the type of information being requested and the scale of the ask. For instance, a request for information is much more straightforward and broad than a request for a proposal or bid.
Depending on the needs of a business or one of its specific departments, an employee will need to make one of the following types of requests to an external company for goods or services.
1. Request for bid (RFB)
When requesting bids from vendors, an RFB is sent out to obtain a statement outlining how much it will cost and how long it will take to perform a specific task. These are utilized when services are needed to complete a project for which the solution is straightforward or generally known.
This type of request is also commonly used for government contracts because it can eliminate biases in selection and promote a level playing field
2. Request for information (RFI)
A Request For Information is even broader than an RFB. This comes into use when asking a company to demonstrate their capabilities or services or it can be a simple request for additional information about the products they offer.
This type of request is useful for companies looking to find out what the general possibilities are in finding a solution to a problem or filling an equipment-related need.
3. Request for proposal (RFP)
Requests For Proposals often follow an RFI, once all the responses have been received and assessed. These requests are used for more complex projects which could be handled with different approaches or by professionals with varying levels of expertise
RFPs are often more detailed, including some sort of questionnaire, and require a longer overall selection process.
4. Request for quote (RFQ)
A Request For Quote, also called a budget request, is directly aimed at learning about the pricing and budget a vendor will require for a service or product. These are often time-sensitive because the price of materials can fluctuate.
This type of request includes several questions that will be used to compare responses, including general information, prices related to given products or services, deadlines, and the criteria that will be used for making a decision.
5. Request for tender (RFT)
A Request for Tender is similar to an RFB, but it is an open invitation more often used for large-scale, technical projects. Because these are often used by government agencies or in the public sector, the process of Tendering is often a public affair aimed at ensuring transparency and fairness throughout the process. The request itself is often shared online and in other public forums.
5 Benefits of Using RFx Software
Using RFx software to improve your business’ procurement processes can benefit your entire operation, allowing every department to seek the outside services they need with ease.
1. Accelerate the procurement process
It’s no secret that time is valuable. RFx software facilitates every part of the request process, so the best vendor for the job can be chosen quickly and without hesitation. By speeding up buying cycles and ensuring quality outcomes, RFx software can save businesses both time and money.
2. Reduce costs
In addition to time, RFx software can reduce costs throughout the procurement process. These savings come from a reduction in supply costs that would come with manual procurement, avoidance of human error, and helping teams choose service providers that offer the best value possible.
3. Competitive positioning
By improving business through optimized procurement processes, RFx software can set you apart from your competitors. It lightens the load on the requesting end so your teams can get more work done and keep your business moving forward.
4. Improved market overview
RFx software can be a useful tool for keeping tabs on what’s going on in the market for a given industry or sector. Being able to easily send out requests for information can help your team gather real-time information and stay in the know – helping make sure you are getting appropriate prices for goods and services.
5. Streamlined data
RFX software provides opportunities for streamlining data, merging streams, and allowing procurement teams to see everything in one place. This makes the data easier to manage so work can get done faster without fear of any important details being left out.
3 Challenges with RFx Software
Here are the top three challenges with RFx software:
1. Loss of data
When adopting new technology, the transfer of data to a new platform often includes the risk of loss. To mitigate this risk, it is important to have a migration plan that includes pre-migration data cleanup. This might mean eliminating redundancies, fixing errors, or simply aligning differences in naming conventions.
This way, existing information is clean and streamlined, ready for a smooth transfer.
2. Data security
Depending on the solution, sensitive proposals or other information may be uploaded to external servers along the way. Some companies will need to choose RFx software that provides additional safeguards or allows users to manage documents internally in order to ensure compliance and keep private information private.
3. Premature bids and collaboration
Another problem many proposal teams encounter is premature proposal creation. 70 percent of the time, proposal writers begin drafting responses before outlines have been approved or edited. Try leveraging content management software to promote easier collaboration. When businesses use tools such as Savo, Qvidan and Loopio, upper management and writers can easily access proposal content, making editing and approval a much more manageable task.
Top 7 RFx Software for 2022
Here is the best RFx software for strategic sourcing, with an overview of each platform, pricing, and review ratings for each vendor.
1. Precoro
G2 Score: 4.7 out of 5
Price: $35 per user per month for teams of 20 or fewer
Precoro is a procurement management software that facilitates purchase orders, workflows, and requests while monitoring budgets and supplier information in a central location. This software includes customizable reporting tools that can be exported into accounting software.
This software includes a purchase request component that allows procurement teams to manage requests, attach relevant documents, categorize expenses, and build an ecommerce experience with a product catalog. This solution includes all features with every plan, access to all future updates, and expert support.
2. Content Snare
G2 Score: 4.6 out of 5
Price: Basic pricing starts at $29 per month for two users – a free trial is available
Content Snare is an information-gathering tool that can be used by businesses in a variety of industries. Their aim is to eliminate the clutter of manual information collection by allowing new clients or vendors to provide information and files through an easy-to-use form that saves automatically and sends automatic completion reminders.
This software includes a custom request builder and a template library, so procurement teams will be able to build out requests to the degree of detail that’s necessary for the project at hand. The basic plan includes unlimited clients, reminders, questions, and templates as well as a drag-and-drop request builder and an approval system.
3. Loopio
G2 Score: 4.7 out of 5
Pricing: Contact Loopio for a quote
Loopio is a software geared directly toward building successful RFx responses. This platform is based on a robust content library where teams can store information about their companies in addition to all of the other required information they will need to submit responses.
The tool works by allowing teams to upload an RFx document which can then be converted into a fillable, signable one on Loopio’s intelligent automation system. At that point, communication and responses can also be automated, further expediting the response process.
4. Avnio RFx
G2 Score: 4.9 out of 5
Price: Starting at $20 per user per month, with a minimum of 5 users – discounts available for nonprofits
Avnio RFx is another RFx response solution built on Salesforce to help businesses create high-quality proposals and other RFX responses quickly. This software uses automation and integrates with widely used communication tools like Slack and Teams to get things done.
This solution also includes an Auto Answer feature that uses AI and natural language processing to auto-populate answers to large amounts of questions. Its scoring system builds qualifiers into the process to weed out requests that are not worth taking on, allowing teams to focus on completing requests for projects that are winnable and worth taking on.
5. RFPIO
G2 Score: 4.7 out of 5
Pricing: Contact RFPIO for a quote
RFPIO is a solution that streamlines the RFx response process by allowing procurement teams to import request documents and automatically analyze the content to determine the time it will take to complete as well as the likelihood of winning. From there, they can use a content library and in-app communication tools to quickly and accurately populate responses.RFPIO integrates with more than 26 third-party platforms to further smooth out the process.
This solution is utilized by large companies like Accenture, Adobe, and Lyft because of its ease of use and priority on security, and boasts its status as the #1 RFP response software on G2 for over three years.
6. Expedience Proposal Software
G2 Score 4.0 out of 5
Price: Contact for details
Expedience Software is proposal creation software built into Microsoft Word that can automate excel and PowerPoint-based RFPs to streamline the proposal process. This solution incorporates a content library right into MS Word so users can insert relevant information and customize as needed.
This software is familiar, easy to use, and keeps things close to the vest so sensitive content doesn’t get uploaded to outside servers.
7. Penny
No G2 Score
Price: $1299 per month billed annually
Penny offers E-sourcing and Procure-To-Pay products that help companies manage their procurement cycle digitally. This platform allows procurement teams to create requests, review and compare responses, make choices, and monitor budgets all in one place.
This solution is geared toward medium and large businesses, helping teams consolidate tasks and create requests easily. Requests are sent out to vendors who can craft responses that are just as easy to use within the Penny platform.
RFx software can improve the procurement process from either end, but employees need to use it effectively for businesses to see maximum benefits. As with adopting any new software, team members can have a hard time becoming accustomed to changes. Whatfix can help.
Through in-app walkthroughs and easy-to-follow instructions, users will quickly become adept at navigating any RFx solution.
Learn more about how Whatfix can support your RFx software implementation today.
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