What’s the Difference Between RFI, RFQ & RFP?

An RFI (Request for Information), RFQ (Request for Quote), and RFP (Request for Proposal) are distinct stages in the procurement process. Here’s a quick comparison:

• RFI: Used to gather information and learn about potential suppliers and their capabilities.
• RFQ: Focused on obtaining price quotes for a specific product or service.
• RFP: A comprehensive request for detailed proposals that include pricing, timelines, and methodologies.

These tools are often used sequentially but can also be applied individually depending on your organization’s needs.

A Request for Information (RFI) is a tool used during the initial stage of the procurement process. It’s designed to gather information about suppliers, their capabilities, and potential solutions to your challenges.

How the RFI Process Works

1. Define Objectives: Clearly outline what you want to learn from potential suppliers.
2. Distribute the RFI: Share your document with a curated list of suppliers.
3. Analyze Responses: Review supplier capabilities and offerings.
4. Shortlist Vendors: Narrow down the list based on their responses.

When Should Your Company Use an RFI?

• When exploring new markets or suppliers.
• To better understand potential solutions before committing to a purchase.
• To determine which vendors are best positioned to meet your needs.

A Request for Quote (RFQ) is used when you need detailed pricing for a specific product or service. This tool is ideal for straightforward purchases where specifications are clear.

How the RFQ Process Works

1. Prepare Specifications: Define the exact requirements for the product or service.
2. Request Quotes: Share the RFQ with suppliers.
3. Evaluate Submissions: Compare quotes based on price and terms.
4. Select Supplier: Choose the supplier that meets your criteria.

When Should Your Company Use an RFQ?

• For routine purchases with clear specifications.
• To compare pricing among multiple suppliers.
• When cost is the primary factor in the decision-making process.

A Request for Proposal (RFP) is a more detailed procurement document that asks suppliers to provide comprehensive solutions, including pricing, methodology, and timelines.

How the RFP Process Works

1. Define Scope: Outline project goals and expectations.
2. Share the RFP: Provide suppliers with a detailed document.
3. Review Proposals: Evaluate submissions based on criteria like cost, quality, and approach.
4. Negotiate & Award: Discuss terms and finalize the agreement with the chosen supplier.

When Should Your Company Use an RFP?

• For complex projects requiring detailed proposals.
• When evaluating a supplier’s approach and methodology is critical.
• To compare vendors beyond just pricing.

Keelvar’s autonomous sourcing solutions make navigating the RFI, RFQ, and RFP processes easier and more efficient. Our platform leverages AI and automation to streamline vendor selection, optimize bidding, and provide data-driven insights for better decision-making. Whether you’re at the information-gathering stage or negotiating a complex contract, Keelvar equips you with the tools you need to succeed.