What is RFI, RFQ and RFP ?
RFI, RFQ, and RFP are all part of the procurement process, which is the process of buying goods, materials, or services.
They all focus on different aspects of Vendor Selection.
- RFI: Request for Information is used to gather information about potential suppliers. It’s a broad request that focuses on a supplier’s experience, capabilities, and general information.
- RFQ: Request for Quote is used to request detailed pricing proposals from vendors. It’s typically used when a buyer is looking for the lowest price.
- RFP: Request for Proposal is used to solicit proposals from suppliers.
RFI Explained:-
RFIs are most effective when they are delivered using a standardized format. This makes it easier to compare vendor information and determine which vendor is the best fit. RFIs should also include a deadline to ensure that prospective vendors respond in a timely manner.
RFIs provide three key benefits:-
- First, they let vendors know that they are competing for your business.
- Second, RFIs help procurement teams gauge vendors’ ability to meet purchasing requirements.
- Third, RFIs standardize this information to simplify comparison and speed up the selection process.
RFQ Explained:-
A request for quotation (RFQ) is a document used to solicit price bids from suppliers. Unlike the other two documents – which focus on capabilities and solutions – the purpose of the RFQ is to assess the cost of a vendor’s service or product. After comparing all requests for quotation, the purchaser may select a vendor or initiate negotiations.
The benefit of this document is that it allows the business to get a detailed estimate of how much the service will cost and if the arrangement with a contractor, service provider, or goods supplier will work on a practical level.
RFP Explained:-
The purpose of an RFP is to evaluate a potential vendor’s capacity to complete a particular job or support a discrete project. RFPs are commonly used during complex processes such as building construction; as a result they may contain detailed information about project components such as subcontractors, materials, machinery, and timeframes for the completion of the different phases. The primary benefit of an RFP is that it collects detailed information about solutions so that the business can make an informed decision about which supplier to choose.
