Proposal Planning Process

Introduction

Riordan Manufacturing's products range from simple plastic injected bottles and fan components to extremely detailed components such as heart valves and cardio care products used in the heath care industry. Procuring materials for product lines as diverse as those at Riordan, can lead to challenges in defining project requirements accurately. Riordan can institute a very simple request for proposal process for raw materials needed in their bottle manufacturing sector due to the product demands. Inversely, significant detail is needed for the development of products for the health care industry due to the liability issues related to the products developed.

Riordan is a worldwide organization with manufacturing facilities in China and locations across the United States. Precise communication needs to be established in the RFP process to ensure a proper understanding of individual product requirements. The intent of this paper is to define the RFP process at Riordan Manufacturing. The roles and responsibilities of individuals involved in the RFP process will also be discussed. Lastly, the role of risk management in the procurement planning process will also be explained.

RFP Process Description

Riordan's procurement department is primarily responsible for the RFP process for the U.S. locations. RFPs for China are handled at that site. The RFP process is initiated when the project manager finalizes the responsibility matrix outlining what services will be purchased. The responsibility matrix is disseminated to the procurement department which starts the process. Procurement initiates gathering the appropriate information from the various functional departments. The Project Manager oversees this process to ensure the various departments cooperate with procurement in a timely manner. Procurement works with the Project Manager suggesting appropriate vendors for the bidding process. As information is received, Procurement organizes the information and puts it into the company RFP format. The RFP is approved by project management prior to issuance. Once approved, procurement issues the final RFP.

Riordan standardizes the RFP format and includes the following information in all RFPs at minimum:

* A brief company background and history

* Contact information for the RFP which is a procurement employee

* A schedule outlining the proposal process including appropriate due