This is not so easy, right? After all, the number of sourcing platforms out there that support direct is about ¹/₁₀ of the platforms that support indirect, and they tend to be over-the-top suites, new startups still building out complete solutions, or over-customized to particular industries. The exceptions to these rules are few and far between and you have to look. But this isn’t why it’s not easy.

As per our last post, the platform alone doesn’t make writing a good RFP easy. If you don’t have the knowledge of what goes into a good RFP, and the platform doesn’t provide it, it doesn’t matter if the platform is the best one out there.

And when it comes to direct, since you’re usually looking for a component, part, or raw material to support a product or system build, you need a lot more insight into what the (end) product or system is as well as the requirements for the component, part, or material.

Again, if you need grade 5 carbon steel bolts for your bus frame, that’s an RFQ, as you are going out to market for a very specific product. You’re going out for an RFP when you’re doing NPD/NPI, and you’re trying to figure out the best component, part, or material to use in your new design.

The key here is to be specific about two things:

1. the intended use and goal of the product or system
2. the form factor, durability, capability, and integration requirements of the component, part, or material being sourced

For example, in the first case, if you are building a power transformer, is it a DC to AC converter to allow people to run small appliances off of their truck battery or is it a stepwise transformer to convert power over a long distance transmission line (that can be over 750,000 volts) to a local substation to power a 460V distillery. This makes a big difference in the required durability and design of any component you plug in.

In the second case, if you are looking for an FPGA, you’re going to specify the preferred and maximum dimensions for that power transformer, the durability (based on expected lifespan), capabilities required (simple display to dynamic stepwise current recalculations based on fluctuating power in the lines to give forewarning of a power drop or cut-off if it predicts a surge that will flip the breaker), and integration requirements (pins, bus speed, etc.). You’re not going to specify the entire design, materials, etc.

Again, it comes down to specifying the need more than the actual design or product. Because if you need a specific product, that’s an RFQ.