Last week I proposed running an RFP for our cleaning services contract during a management meeting. The current agreement expires in six months, a good moment to test the market. The operations manager's response was predictable: "But we have such a great relationship with them. What if they find out we're looking around? Will they still perform over the next few months?"
I've heard that reaction in dozens of companies by now. Operations and procurement both want the best for the organisation, but they approach it from different angles. Operations thinks in relationships, continuity and daily performance. Procurement thinks in market prices, contract terms and savings potential. Those two perspectives don't have to clash. In fact, when you combine them, you get better contracts.
Why operations pushes back on RFPs
The resistance from operations to a request for proposal is understandable. They work with the supplier every day. They've built a relationship, know the contacts, know what to expect. An RFP feels like a threat to that supplier: we don't trust you anymore.
On top of that, there are practical concerns. What if the supplier hears about the tender and starts cutting corners? What if we switch and the new party doesn't deliver on its promises? Operations carries the operational risk and feels exposed when things change.
Those concerns are real. But they're not a reason to never test the market. They're a reason to do it carefully, together.
Why procurement wants to run an RFP
Procurement doesn't start an RFP to annoy the current supplier. It comes down to three things:
Market visibility. Without periodic comparison, you don't know whether you're still paying a fair price. Prices shift, new providers enter the market, technology changes. After three years without a benchmark, you have no idea where you stand.
Negotiating position. Renewing a contract without testing the market means negotiating without alternatives. Your supplier knows that too. An RFP gives you the information you need for a fair conversation, whether you switch or not.
Accountability. With 43 percent of total business costs going to external procurement (Bain & Company), you need to be able to explain why you're staying with a supplier. "Things are going fine" is not a justification. "We tested the market and this supplier scored best on price, quality and service" is.
More data on the impact of structured procurement: SME Contract Management Statistics 2026.
What goes wrong when procurement acts alone
Here's the core of the problem. When procurement sets a procurement strategy without involving operations, a gap appears. Procurement negotiates a contract with sharp prices and tight service level agreements. Operations receives the result and doesn't recognise it. The requirements don't match daily practice. The new supplier delivers something different from what operations actually needs.
The result: operations works around the contract. They order directly from the old supplier, or from another party they know personally. That's maverick buying, and according to the Hackett Group, 10 to 20 percent of targeted procurement savings are lost this way. Not because operations is being difficult, but because they weren't involved in the decision.
Poor contract management costs organisations an average of 9.2 percent of annual revenue, according to World Commerce & Contracting. A large part of that loss doesn't start with the contract itself, but with the lack of alignment between the people who close the contract and the people who have to work with it.
How to involve operations from day one
The solution isn't complicated, but it takes discipline. Five steps:
1. Start with a joint requirements definition
Let operations define what they need. Not procurement. Operations knows the requirements, the pain points in the current contract and where the priorities are. Procurement translates that into a structured request. See also: How to write an RFP as an SME.
2. Set evaluation criteria together
When operations helps decide the weighting (price 40%, quality 30%, flexibility 30%, or a different split), they accept the outcome too. Procurement brings market knowledge, operations brings operational knowledge. Use a supplier evaluation of the current supplier as your starting point.
3. Include operations in supplier presentations
Nothing is more convincing than seeing what the market has to offer first-hand. When operations hears three suppliers present, they form their own judgement. That judgement is often more nuanced than the assumption that the current supplier is automatically the best.
4. Be transparent about the goal
Communicate upfront whether this is a benchmarking exercise (the current supplier stays in the picture) or a full replacement. That matters for both operations and the suppliers. Honesty prevents distrust.
5. Formalise the roles in your procurement policy
Document who does what during a tender. When your procurement policy states that operations is involved in strategic sourcing, you don't have to argue the case every time. It's simply how you work.
How to handle the existing supplier
The fear from operations that a supplier will react badly to an RFP is understandable, but rarely justified. Professional suppliers know that tenders are part of doing business. They expect them, especially for contracts running multiple years.
In fact, if a supplier reacts poorly to the news that you're testing the market, that's valuable information in itself. A supplier that can't handle transparency is not a supplier you want to depend on.
Communicate clearly:
- Early. Tell the supplier well in advance that you're conducting a market review. Not at the last minute.
- Honestly. Explain that it's standard policy, not a reaction to poor performance.
- Inclusively. Invite the existing supplier to participate in the RFP as well. That's fair and gives them the chance to confirm their position.
A supplier that knows you periodically test the market stays sharp. That's not a threat to the relationship. That's healthy business practice.
The result: better contracts, stronger relationships
When procurement and operations work together on a tender, three things happen.
First, the contract matches operational reality. No theoretical terms that don't work in practice, but conditions tested by the people who have to work with them.
Second, the supplier selection is better substantiated. You don't choose on price alone, but on a weighted score covering both financial and operational criteria. Structured procurement delivers an initial cost advantage of 8 to 12 percent, with 2 to 3 percent additional savings per year after that, according to Bain & Company.
Third, there's buy-in. Operations helped decide and stands behind the result. That prevents sabotage, maverick buying and the frustration that builds when a department feels decisions are made over their heads.
The tension between procurement and operations during an RFP is not inevitable. It's a symptom of poor collaboration. Fix the collaboration, and the tension disappears.
See also: Procurement under control: getting a grip on your suppliers
Sources
- Bain & Company - Procurement Excellence - research on cost savings through structured procurement
- World Commerce & Contracting - Benchmark Report - data on contract leakage and revenue loss
- Hackett Group - Procurement Advisory - research on maverick buying and procurement effectiveness
- PIANOo - Dutch Procurement Expertise Centre - guidelines for professional procurement