Why your business should issue an RFP for indirect supplies

Most organizations have a solid handle on their direct costs — the materials and services that go straight into their core products or customer solutions. But indirect spend — everything from office supplies and shipping to maintenance, breakroom, and safety items — is where savings often hide in plain sight.

Because indirect procurement tends to be fragmented across departments and locations, it’s easy to lose track of what you’re truly spending and where. That’s why many businesses turn to a formal Request for Proposal (RFP) process, also called Request for Quote (RFQ). It brings structure, transparency, and competitive insight to these overlooked categories.

The value of an RFP in indirect procurement

An RFP isn’t just a bidding exercise — it’s a strategic step toward data-informed decision-making. By taking the time to issue one, you create a foundation for smarter supplier partnerships, measurable cost control, and operational consistency.

Here’s what the process can help you achieve:

1. Clarify your true spend ⁠
⁠You can’t manage what you can’t see. An RFP forces internal alignment by consolidating spend data across teams and categories. The result: a clear picture of total indirect spend and where efficiencies can be gained.

2. Encourage competition and benchmarking ⁠
⁠When suppliers know they’re being evaluated alongside peers, pricing and service levels naturally improve. Even long-time vendors will revisit their offers when they see a structured, competitive process.

3. Evaluate total value, not just cost ⁠
⁠An RFP helps you go beyond unit prices to consider the full equation — delivery reliability, responsiveness, reporting, rebates, and sustainability initiatives. These qualitative factors often drive long-term savings and performance.

4. Support procurement strategy and governance ⁠
⁠A well-run RFP builds discipline and documentation into your procurement process. It helps leadership make defensible, data-backed supplier selections and ensures ongoing accountability.

Your indirect supply RFP checklist

To make the process smoother and more effective, use this checklist as a guide. It covers the key steps from planning to evaluation.

Before you begin

✅ Review spend data from all relevant locations or departments
⁠✅ Identify high-impact categories (office, facilities, janitorial, shipping, etc.)
⁠✅ Define clear objectives: cost reduction, supplier consolidation, improved service, or sustainability alignment
⁠✅ Involve stakeholders early to confirm priorities and pain points

Building your RFP

✅ Clearly outline scope, expectations, and service areas
⁠✅ Provide baseline spend data for accurate comparison
⁠✅ Standardize pricing templates to make analysis easier
⁠✅ Request details on service models, delivery performance, and support levels
⁠✅ Include any compliance, diversity, or ESG requirements
⁠✅ Communicate realistic submission timelines and evaluation criteria

Evaluating responses

⁠✅ Compare both price and total cost of ownership
⁠✅ Weigh qualitative factors (service, technology, value-adds) alongside cost
⁠✅ Check supplier references and scalability
⁠✅ Document evaluations and align with internal stakeholders before final selection

Simplify the process with a guided approach

If your organization lacks the time or bandwidth to manage a full RFP process internally, you’re not alone. Many procurement teams are stretched thin — which is why platforms like Excelerate America's Spend Navigator can help streamline the process.

With one Request for Quote (RFQ) submission through our platform, you can access multiple supplier bids, see how your pricing stacks up, and gain spend analysis insights to guide future purchasing decisions.

It’s a practical, data-driven way to begin uncovering savings in your indirect spend — without reinventing your procurement process.