At face value, RFPs seem like a prudent path when selecting an AP Automation tool. They formalize decision criteria, engage stakeholders and ideally will secure the best pricing. But there are downsides.
They are time consuming and delay the implementation by 3 to 6 months. That translates into lost opportunity using the system and the productivity and monetary gains that come along with it. Also, RFPs are very expensive to set up and operate. Consider the amount of time users in Finance, IT and procurement are involved writing specifications, reviewing submissions and following up on new requirements before finally making a decision. And then, what happens when the selected vendor and the company are unable to come to acceptable terms and conditions in the contracting phase?
The above selection process, from beginning to end, can be completed in 4 to 6 weeks. Compare that to an RFP which takes 4 to 6 months, 4 times as long!