An Uncertain Year for Business Will See an Uplift in RFPs
Many businesses are feeling the pinch right now, and although this is unsettling, it will actually be a good thing for those involved in either side of the RFP process…
Tightening purse strings
It’s no secret that companies seek to save money wherever possible, and most businesses will feel overstretched. Budget cycles are always stressful, but now more so than ever as companies are forced to make cuts and operating costs are rising. This affects all kinds of businesses, from small startups to large corporations. As budgets tighten across the board, there will be more and more scrutiny over how organisations spend their money. Increased opportunities will go out to tender, as every penny spent needs to be analysed, scrutinised and justified – ensuring that budgets are being spent wisely. Buyers will be more careful and deliberate about their purchasing decisions than ever before.
As the world around us continues to develop, so does the risk level involved in purchasing decisions. Anything from cyber incidents, to the energy crisis, or changes in legislation – risk is on the rise. But companies obviously don’t want anything going wrong with their large investments, so the need for enhanced questioning and security checks arises with their suppliers. Buyers want assurance that every aspect of their purchase has been considered thoroughly – this means a greater need to go out to tender with multiple providers to find the best possible solution, at the best possible price for their business.
More stakeholder involvement
With higher stakes involved in each purchase decision, more is needed for just one department or person within an organisation to approve supplier spend; now, there must be agreement across multiple teams before any money can be committed. As a result, buyers need more help from their procurement teams to ensure everything goes smoothly from start to finish. This will ensure that nothing falls through the cracks later down the line due to a lack of communication between different departments within an organisation. The more people involved, the greater the need for a robust and centralised procurement process that allows collaboration from around the business.
As you’re most likely aware, it’s been a tough few months for B2B companies recently. Layoffs have been rampant in the tech industry, and every week, there’s another story about how some company is cutting employees or reducing full-time staff to contractors. This trend won’t stop anytime soon – in fact, it’s just the beginning of what we’ll see over the coming years as companies look for ways to cut costs without damaging their bottom line too much. Those left in procurement teams are now facing burnout from long hours and overwhelming workloads. They need support from other departments and leadership to survive and thrive during this uncertain period. This is where automation comes into play, as these teams want to do more with less and are looking for tools that make it easier for them to manage their procurement processes without needing additional staff members.
We’re entering a new era of uncertainty for businesses. With budgets in flux, more risks on the table, and a reduction in headcount, buyers are becoming more cautious about making purchases. Putting their business out to tender is a critical step for procurement teams to ensure clarity, security, and value on their spending, making them more empowered than ever when it comes time to place orders or commit budgets.
For those responding to RFPs, leveraging digital platforms like the Avnio Response Cloud is critical to ensuring transparency across your entire organisation while ensuring everyone has access to information at every step along the way. With a potential reduction in your headcount, the platform allows you to use fewer resources on each bid and increase your capacity for more RFPs by automating manual and repetitive processes.
So while no one can be quite sure what 2023 (and beyond) has in store, we can expect to see more sales opportunities going out to tender, and this is surely a win-win scenario for both sides of the coin.
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