Contract season is a critical time for many organisations, as proposals, pricing and supplier strategies come under review. With market volatility, cost pressures and service expectations all in play, deciding whether to go to tender isn’t always straightforward.

Before launching a full RFP or RFQ, it’s worth stepping back and ask these 3 key questions to ensure the process delivers real value – not just short-term savings.

Key questions to consider

1. How are your current providers performing?

Start by evaluating operational performance. Are your providers meeting service levels? Are they helping improve lead times, reduce unit costs, or introduce new efficiencies?
Have you considered the value of existing partnerships? Providers who understand your business deeply are often well positioned to bring forward ideas that improve performance and resilience — without the disruption of a full tender process.

2. What is your rate validity strategy?

Consider whether short-term or long-term rate agreements best support your business objectives. Do you want to lock in stability, or take advantage of near-term market opportunities?
Understanding the upsides and trade-offs of each approach can help balance cost certainty with flexibility in changing market conditions.

3. How are you benchmarking the market?

Access to the right tools and market intelligence is critical. How confident are you that your rates are competitive? Do you have visibility into service, performance and risk — not just price?
Benchmarking should assess the full value equation, including delivery reliability, innovation potential and long-term partnership strength.

Doing it well: what leading organisations do differently

Companies that manage this process effectively tend to share three common traits:

• They stay flexible

  Going to tender isn’t automatic. The decision is driven by timing, performance concerns or strategic change — not habit.

• They maintain consistent dialogue with providers

  Regular performance reviews create opportunities to discuss innovation, efficiency gains and continuous improvement. In many cases, this collaboration delivers more value than marginal cost savings.

• They benchmark intelligently

  Rather than defaulting to a full tender, leading organisations may run targeted rate reviews or challenge key partners to demonstrate competitiveness. This approach is often faster, more efficient and less disruptive than a full RFQ.

Making informed decisions

In today’s environment, strong partnerships with providers who understand your business can be a powerful advantage. Making informed, balanced decisions – weighing service, performance, cost and long-term value – is essential.

Ultimately, deciding whether to bid or not to bid is just one part of building a more resilient supply chain.