Developing a Relocation Request for Proposal (RFP)

Developing a Request for Proposal (RFP) for relocation services is not an easy task, particularly if your Procurement Department has limited experience in relocation.

The relocation industry can seem complicated in terms of Relocation Management Company (RMC) structure, revenue streams, technology innovation, supplier relationships, office locations, and service capabilities.

The following are key areas to consider as you develop an effective RFP and move through the RMC selection process:

Avoid Information Overload
There are literally hundreds of questions that can be posed in an RFP for relocation services. In fact, RMCs sometimes receive RFPs with more than 100 questions. This typically results in the RMCs struggling to answer all the questions in a meaningful way, since many of the topics overlap. In addition, it results in the corporation receiving more information than they can possible digest in a way that leads to a logical conclusion. It is not unusual for a corporation to extend or postpone the RFP process after receiving the responses, due to information overload. Avoid this situation for your company by deciding what is most important for you to know. Limit the number of questions that you ask to those that are focused on your specific program objectives.

Keep the Field Small
To the degree possible, keep the field of contenders as small as possible. One way to do this is by completing a Request for Information (RFI) first, which should allow you to limit the field of contenders to five or less. In a smaller RFI, you can learn about the RMC’s company size, annual volume, services available, global reach, and company culture. This can help you narrow the list to RMCs that meet your criteria for a more complex RFP.

Making Logical Comparisons
To the degree possible, ask questions in a way that allows you to make logical comparisons. This is easier when requesting hard data (although the data still must be qualified appropriately) than it is for softer questions.