Spend Management RFP Template & Evaluation Matrix

Choosing the right spend management system is a critical decision that can transform your financial operations. But with so many options available, the selection process can feel overwhelming. A well-crafted Request for Proposal (RFP) is your most powerful tool for cutting through the noise, objectively comparing vendors, and ensuring you select a platform that solves your specific challenges.

This guide provides everything you need to confidently manage your selection process. We’ll walk you through how to build a request for proposal for procurement software, offer a comprehensive spend management RFP template, and provide a detailed evaluation matrix to help you make a data-driven decision.

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What is a request for proposal (RFP) for spend management software?

A Request for Proposal (RFP) for spend management software is a formal document a company creates to outline its business requirements for a new procurement and finance solution. It is sent to a shortlist of qualified vendors, inviting them to submit detailed proposals explaining how their platform can meet those needs.

The primary goal of an RFP is to structure the evaluation process. It ensures that every vendor provides information in a consistent format, making it easier to compare features, pricing, and implementation plans side-by-side. This structured approach removes guesswork and helps you identify the best partner for your organization's long-term goals, moving beyond flashy sales pitches to focus on tangible capabilities.

How to build a request for proposal for procurement software

Building an effective procurement software RFP involves more than just listing features. It requires a strategic approach that starts with internal alignment and ends with a clear, concise document that vendors can easily respond to. Following a structured process ensures you ask the right questions and gather the information needed for a confident decision.

Step 1: Define your goals and project scope

Before writing a single word of your RFP, you must understand what you’re trying to achieve. Start by identifying the specific pain points in your current process. Are you struggling with uncontrolled maverick spending? Is your accounts payable team buried in manual invoice processing? Do you lack real-time visibility into departmental budgets? Documenting these issues will clarify your objectives.

Once your challenges are clear, set measurable goals for the project. For example:

Reduce invoice processing time by 50%.
Increase spend under management by 40%.
Eliminate duplicate payments and other cash leaks.
Improve budget adherence across all departments.

Step 2: Assemble your project team and stakeholders

Selecting a spend management system impacts multiple departments. Assemble a cross-functional team to ensure all perspectives are represented. Key stakeholders typically include:

Finance: CFOs, controllers, and AP managers who oversee budgets, payments, and financial reporting.
Procurement: Directors and managers responsible for sourcing, vendor relationships, and contract negotiation.
Operations: Team members who rely on efficient purchasing to keep the business running, especially in multi-location businesses.
IT: Specialists who will manage technical integrations, security, and data management.
End-Users: A representative sample of employees who will be using the platform to make purchase requests.

Step 3: Document your current process and requirements

Map out your entire existing purchase-to-pay (P2P) workflow, from the initial request to the final vendor payment. This exercise helps identify bottlenecks and clarifies which process steps need improvement.

Next, work with your stakeholders to create a detailed list of requirements. Divide this list into two categories:

Must-Haves: Non-negotiable features essential for your business operations (e.g., integration with your ERP, custom approval workflows).
Nice-to-Haves: Features that would add value but are not critical for launch (e.g., advanced contract management, AI-powered spend analytics).

Step 4: Draft the RFP document

Using your goals and requirements as a foundation, begin drafting the RFP. A logical structure is key to getting clear and comparable responses. The next section of this article provides a detailed, section-by-section template you can adapt for your organization. A strong RFP is clear, specific, and focused on your unique business needs, not generic feature lists.

Tool

Request for Proposal (RFP) Template

A request for proposal template streamlines vendor sourcing into a documented, repeatable process. Download a free RFP template to organize your next project.

Download the tool

Step 5: Create a vendor shortlist

Research potential vendors that align with your company size, industry, and core requirements. Look for providers with a proven track record of success with businesses like yours. Resources like Gartner, G2, and Capterra, along with peer recommendations, are excellent places to start. Aim for a shortlist of 3 to 5 vendors to ensure a competitive but manageable process.

Step 6: Send the RFP and manage the process

Distribute your RFP to the shortlisted vendors and establish a firm timeline for the entire process. A typical timeline includes:

Final Decision Date: Your target date for selecting a partner.
RFP Distribution Date: The day you send the document.
Deadline for Questions: A set date for vendors to submit clarifying questions.
Response to Questions: When you will provide answers to all vendors.
RFP Submission Deadline: The final date for proposal submission.
Vendor Demonstrations: A window for scheduling demos with top contenders.

The complete spend management RFP template

A comprehensive spend management RFP template should include sections for an executive summary, company background, project scope, detailed functional and technical requirements, implementation and support details, and pricing structure. This ensures you receive all the necessary information to make a well-informed decision.

Section 1: Introduction and Company Overview

1.1 Company Background: Briefly describe your company, including your industry, size, number of locations, and core business model.
1.2 Project Summary and Goals: Provide a high-level overview of the project. Explain the key business challenges you are trying to solve and the primary objectives you aim to achieve with a new spend management system.
1.3 Main Point of Contact: Designate a single person to handle all communications regarding the RFP.
1.4 RFP Timeline: List all key dates and deadlines for the RFP process.

Section 2: Scope of Work and Key Objectives

2.1 Current State: Describe your current procurement and AP processes, including any software and manual workflows currently in use.
2.2 Desired Future State: Detail how you envision your ideal P2P process operating with the new system in place.
2.3 Key Performance Indicators (KPIs): List the specific metrics you will use to measure the project's success (e.g., cost savings, cycle time reduction, user adoption rate).

Section 3: Functional Requirements

This is the core of your RFP. List specific features and ask vendors to describe how their platform meets each requirement.

What tools are available for strategic sourcing and identifying procurement savings?

3.1 Requisition and Approvals
- Describe your platform’s ability to create and manage purchase requisitions.
- Can approval workflows be customized based on department, location, GL code, and dollar amount?
- Does the system support mobile approvals for managers on the go?
- How does the platform provide real-time visibility into budgets during the pre-approval stage?
3.2 Purchasing and Ordering
- Explain how your platform facilitates the ordering process. Do you offer a centralized marketplace or punch-out capabilities?
- How does your system manage vendor catalogs, pricing, and product information?
- Describe the purchase order processing workflow and automated distribution to suppliers.
- Does your solution support different purchasing needs, including physical goods, software subscriptions, and services?
3.3 Receiving, Invoicing, and Payments
- Detail your process for goods receiving and 2-way or 3-way matching.
- How does the platform automate invoice capture and processing?
- Describe your accounts payable automation capabilities, including payment scheduling, execution (ACH, check, virtual card), and reconciliation.
- Do you offer flexible payment terms or financing options?
3.4 Spend Analytics and Reporting
- Describe the standard and customizable reporting features available.
- How does your platform provide real-time, line-level visibility into all company spend?
- Can the system track budget vs. actuals by department, project, or location?
- What tools are available for strategic sourcing and identifying procurement savings?

Section 4: Technical and Security Requirements

4.1 Integrations: List your existing financial systems (e.g., NetSuite, QuickBooks, Sage Intacct) and describe the depth and type of integration your platform offers (e.g., API, flat file).
4.2 Security and Compliance: Describe your security protocols, data encryption standards, and any relevant certifications (e.g., SOC 2 Type II).
4.3 Scalability: Explain how your platform architecture supports company growth in terms of transaction volume and user count.

Section 5: Implementation, Training, and Support

5.1 Implementation Process: Provide a detailed project plan for a typical implementation, including timeline, key milestones, and required resources from our team.
5.2 Data Migration: Describe your process for migrating data such as vendor lists, catalogs, and open POs.
5.3 Training: Outline your user training program for both administrators and end-users.
5.4 Customer Support: Describe your ongoing customer support model, including hours of operation, support channels (phone, email, chat), and standard service level agreements (SLAs).

Section 6: Vendor Information and Pricing

6.1 Company Background: Provide a brief history of your company, your target market, and your key differentiators.
6.2 Customer References: Provide 3 customer references in a similar industry and size to our organization.
6.3 Pricing Model: Provide a detailed breakdown of all potential costs, including:
- One-time implementation and setup fees.
- Recurring subscription fees (per user, per transaction, etc.).
- Fees for additional modules or premium features.
- Payment processing fees.
- Any other potential charges.

Tool

Request for Proposal (RFP) Template

A request for proposal template streamlines vendor sourcing into a documented, repeatable process. Download a free RFP template to organize your next project.

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Evaluating vendor proposals: The procurement software decision matrix

Use a weighted scoring matrix to evaluate vendor responses objectively. This matrix should assign scores to each requirement based on its importance to your business, allowing for a data-driven comparison of different procurement software solutions. This method removes bias and helps you focus on what truly matters to your organization.

Key criteria for your evaluation matrix

Create a spreadsheet with your requirements listed in rows and your shortlisted vendors in columns. Assign a weight to each category based on its importance. For example:

Functionality (40%): How well does the solution meet your core functional requirements for requisition, purchasing, AP, and reporting? This should be the highest-weighted category.
Usability and Adoption (20%): How intuitive and user-friendly is the platform? A powerful system is useless if your team won’t use it.
Technical Fit and Integration (15%): How seamlessly does the software integrate with your existing ERP and accounting systems? Poor integration creates manual work and data silos.
Implementation and Support (15%): How confident are you in the vendor’s ability to manage a smooth onboarding process and provide excellent ongoing support?
Pricing and Total Cost of Ownership (10%): Does the pricing model provide clear value? Consider all costs over a 3- to 5-year period, not just the initial quote.

Using the matrix to shortlist vendors

Score each vendor on a scale of 0 to 5 for every requirement (0 = Does Not Meet, 5 = Exceeds Expectation). Multiply the score by the category weight to get a weighted score. Sum the weighted scores for each vendor to get a total score.e particularly useful when you're still exploring multiple potential solutions or your understanding of the challenge is still in the early stages.

Category (Weight)	Vendor A Score (0-5)	Vendor A Weighted Score	Vendor B Score (0-5)	Vendor B Weighted Score
Functionality (40%)	4	1.6	5	2.0
Usability (20%)	5	1.0	3	0.6
Technical Fit (15%)	3	0.45	4	0.6
Implementation (15%)	4	0.6	4	0.6
Pricing (10%)	3	0.3	4	0.4
Total Score		3.95		4.2

This scoring system will help you quickly identify the top 2-3 vendors to invite for in-depth product demonstrations, where you can validate their claims and see the software in action.

How Order.co streamlines the entire procurement process

Order.co is an AI-powered procurement and finance automation platform that unifies the entire purchase-to-pay process, from requisition and strategic sourcing to payment and reconciliation, in a single guided marketplace. The platform is designed to address the key requirements outlined in your RFP, bringing order to the chaos of business buying.

While other solutions offer point solutions for expenses, AP, or cards, Order.co centralizes every vendor and transaction in one system.

Complete P2P Automation: Our guided marketplace automates the entire procurement lifecycle. Approval workflows are built-in, purchase orders are automatically generated, and our Consolidated Billing feature eliminates the need for manual 3-way matching by providing a single, perfectly reconciled invoice for all your purchases. This level of procurement automation dramatically reduces the administrative burden on your finance and operations teams.
Full Spend Visibility and Control: With Order.co, you gain line-level, real-time visibility into every dollar spent before it leaves your bank account. Enforce budgets at the point of purchase and prevent rogue spending for good. Its powerful analytics help you optimize your spend efficiency and make smarter financial decisions.
Strategic Sourcing and Cost Savings: Leverage our network of over 15,000 vendors or bring your own. Order.co AI Sourcing automatically finds the best products at the best prices, saving our customers an average of 5% on product costs. We also provide dedicated support for managing vendor relationships and optimizing your category management.

Making a confident decision

Choosing a spend management system is a major step toward scaling your business efficiently. By defining your needs, using a structured RFP template, and evaluating vendors with a weighted decision matrix, you can move forward with confidence. The right platform is more than just software—it’s a partnership that will support your growth for years to come.

Ready to see how a unified procurement platform can transform your operations? Schedule a demo to learn how Order.co can simplify buying for your business.

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