How are RFIs, RFPs, and RFQs different?
RFI (Request for Information), RFP (Request for Proposal), and RFQ (Request for Quote) each represent different sets of requests in a procurement process.
What is the difference between an RFI, an RFP, and an RFQ? If you’ve read our article What is RFx, you’ll know that RFx is an acronym describing a set of documents requested by the procuring organization during the purchase process. RF stands for “Request For” and the X represents different requests.
RFIs (Request for Information), RFPs (Request for Proposal), and RFQs (Request for Quote) are the most commonly requested RFx document sets, and in this article we’ll delve into the differences between these requests.
Each of these requests serves a different purpose in the purchasing process. In fact, more than one type of RFx might be used during a single purchasing process with each RFx. When this is the case, they are typically ordered as follows:
An RFI (Request for Information) is a preliminary step in the purchasing process in which the purchasing company describes the challenge they wish to address with a product or service and potential vendors respond with general information about their offerings that could address that challenge. A company is likely to begin the purchasing process with an RFI if they are making a purchase in a new or unfamiliar marketplace, using the RFI to help them understand what solutions are available. An RFI helps a company making a purchasing decision to narrow their requirements. RFIs are investigative, and a contract is not awarded in this phase.
An RFP (Request for Proposal) solicits detailed proposals from potential vendors, describing how their product or service will meet specific requirements defined by the purchasing company. An RFP may follow after an RFI has helped to identify possible solutions, or an RFP may kick off the purchasing process if the purchasing company’s requirements are already established and well understood. RFPs are most commonly used for complex, technical, and/or expensive projects with a lot of requirements. An RFP helps a company making a purchasing decision to narrow potential vendors. RFP responses are formal bids, and an RFP typically concludes when the purchasing company selects a vendor and awards a contract.
An RFQ (Request for Quote) gathers pricing information from potential vendors for specific products or services. An RFQ may follow an RFI or an RFP, or it might be the sole RFx in the purchasing process if the item or items being purchased are commoditized, general items where factors like price and delivery time are the only requirements that will differentiate potential suppliers. RFQs typically conclude with vendor selection and an awarded contract.
RFIs, RFPs, and RFQs (and other less common RFx) each serve a distinct purpose in the purchasing process. RFIs help gather general information, RFPs solicit detailed solutions, and RFQs focus on pricing for specific needs. Understanding these distinctions allows companies to choose the right RFx for each stage of their procurement journey.
But all that aside, these RFxs are all external collaborations run by the procurement team with suppliers and vendors. These projects benefit from the support of a proper external collaboration tool, such as TakeTurns. To learn more about RFx, or to improve your own RFx process, check out our guides on the Best Practices for Improving Your RFx Process and the Top Tools for Your RFx Projects.
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