Buyer’s Guide & RFP Best Practices: POINT OF SALE
• Processes Driving Procurement • Integrations Considerations • Evaluation Criteria • Checklists & Tips • Labs, Pilots & Final Awards
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BUYER’S GUIDE & RFP BEST PRACTICES: POINT OF SALE
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Introduction
Staff
Current Request for Proposal (RFP) processes are cumbersome, time-consuming, and complex, even for the most sophisticated buyers & suppliers. It is common for this process, or parts of this process, to be outsourced due to the time commitment and risk associated with strategic decision-making. The RFP process should be simple and streamlined for non-mission critical applications. While individual organizations prioritize certain systems, most companies would benefit from a normalized, clearly defined plan, adaptable to specific needs.
VP and Brand Director, HT Co-Founder, RTN 973.607.1358 alorden@ensembleiq.com
ABBY LORDEN
ANGELA DIFFLY Co-Founder, RTN 404-550-7789 angela@restauranttechnologynetwork.com
PATRICK DUNPHY CIO, HTNG & RTN 312.690.5039 patrick@restauranttechnologynetwork.com
ROBERT FIRPO-CAPPIELLO
The RTN Buyer’s Guide and RFP Best Practices will help buyers and sellers accelerate the procurement process by:
Editor in Chief, HT 917.208.7393 rfirpo-cappiello@ensembleiq.com
ANNA WOLFE Senior Editor, HT 207.773.1154 awolfen@ensembleiq.com
Identifying what constitutes a quick decision vs. full-fledged RFP process
MICHAL CHRISTINE ESCOBAR Managing Editor, HT 224.632.8204 mescobar@ensembleiq.com
Ensuring clear objectives for buyers and suppliers Creating a framework to prioritize requirements
KATHERINE WARE Senior Account Executive, HT & RTN 785.424.7392 kware@ensembleiq.com
Increasing buy-in from stakeholders and executive teams
NOELL DIMMIG
Defining clear communications with vendors
Account Executive, HT & RTN 973.607.1370 ndimmig@ensembleiq.com
Simplifying the selection and proof of concept test process
LEAH SEGARRA
Reducing complexity wherever possible RESTAURANT TECHNOLOGY NETWORK
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Senior Account Executive, HT & RTN 973.610.8391 lsegarra@ensembleiq.com
Table of Contents Introduction........................................................................................................................................2 Do You Really Need an RFP?.................................................................................................... 4 Internal Stakeholder Management.......................................................................................... 6 Needs vs. Wants vs. Wish List................................................................................................... 8 Identifying Vendor Candidates................................................................................................. 9 Communicating with Vendors................................................................................................. 10 Evaluation Criteria........................................................................................................................ 12 Lab & Pilot Programs................................................................................................................... 13 Appendix A: Sections of the RFP........................................................................................... 16 Appendix B: Stakeholder Questionnaire............................................................................. 20
Key Contributors
CHRIS HEARD
NIKO PAPADEMETRIOU
JOE TENCZAR
CEO & Co-founder
Vice President, Major Accounts & Business Development
Co-Founder
Our Mission
The Restaurant Technology Network (RTN) is a membership community solely dedicated to the restaurant technology industry. Through access to valuable benefits and powerful connections, our members shape industry standards and share technical guidance to help restaurateurs run successful businesses and better serve their customers.
Copyright 2020 Restaurant Technology Network (RTN). All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or information storage and retrieval systems, without express written permission from the publisher. RTN is a wholly owned subsidiary of EnsembleIQ, with principal headquarters at 8550 W. Bryn Mawr Ave., Suite 200, Chicago, IL 60631.
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BUYER’S GUIDE & RFP BEST PRACTICES: POINT OF SALE
Do You Really Need an RFP? IS THIS A STRATEGIC SYSTEM? HOW MANY BUSINESS UNITS MAY BE BY A CHANGE?
AFFECTED
TS BE ABLE WILL EACH OF THOSE BUSINESS UNI ECTION AND TO DEDICATE RESOURCES TO THE SEL R/SOLUTION? IMPLEMENTATION OF THE NEW VENDO t’]
[See ‘Internal Stakeholder Managemen
IS THERE A HIGH RISK IF YOU CHOOSE THE WRONG SOLUTION?
• Is the current cost of not having this new system higher than the cost of having to make a second decision?
• If the risk is localized to an individual department or does not have potential knock-on effects, a full evaluation may not be necessary.
• Is the new solution potentially complicated
• Term of agreement with solution (month to month has lower risk)
to replace?
TIP: If ramping up and ramping down the system can be done relatively painlessly, there is less long-term risk to mitigate through a more involved evaluation process.
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Processes for Smaller Brands/Chains vs. Larger Brands/Chains DO YOU HAVE THE TIME AND RESOU RCES TO EXECUTE AN RFI/RFP PROCESS? CAN YOU ENGAGE A CONSULTANT TO EXECUTE THE PROCESS?
Opportunity Costs • POTENTIALLY HUNDREDS OF HOURS The RFP process will take a lot of time. Would that time be better spent (weighi ng against a poor decision) elsewhere? • PM SUPPORT Would the cost of a Project Manager/Co nsultant outweigh the cost of a poor decision?
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BUYER’S GUIDE & RFP BEST PRACTICES: POINT OF SALE
Internal Stakeholder Management
STEP 2.
Intelligence Gathering
STEP 1.
Internal Notice
Conduct interviews with high-value users across functional departments. Develop a similar interview framework so that expectations and results are easy to categorize and prioritize.
Create an internal memorandum outlining the 30,000-foot breadth of the project and distribute it to all business units, challenging them to be a part of the project, or miss out on the opportunity to meaningfully contribute.
TIP: Ensuring a well-defined story or ‘why’ the requirement has been included is beneficial, both for the team’s understanding as well as the vendor’s.
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TIP: Maximum transparency among internal stakeholders is key (eg. ops, IT, marketing, etc.). Collaborative decision-making throughout the project lifecycle yields more long-term company-wide consensus.
STEP 4.
Requirements & Scope
STEP 3.
Business Unit Buy-In
While defining requirements, ensure stakeholders consider both functional requirements and the outcome they’d like to achieve. Outcomes are open to vendor interpretation, but are more indicative of actual system operation than specific functionality.
Each business unit should conduct an internal session to identify additional areas that may benefit, either in reducing current friction/challenges or by adding features/functions, to existing processes. • Select one or two people from each relevant department as representatives on the selection/evaluation committee. • If you have franchisees, involve them in this process. It’s not necessary to include all, but ideally everyone should have some representation. • Determine how your customers, franchisees, or vendors may use this system. • Conduct your own ROI analysis. Do not depend on a vendor to do this for you.
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BUYER’S GUIDE & RFP BEST PRACTICES: POINT OF SALE
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