The choice of which document to use: RFI RFP RFQ for which type of sourcing project depends on the desired outcome – is it information, a firm proposal or a detailed price bid that is needed.
A Request for Information (RFI) is a method of collating information from different suppliers prior to formally sourcing products or services. It is normally used where there are many potential suppliers and not enough information is known about them. It is a structured process where a long list of potential suppliers can be reduced to a short list of those organizations that are willing and able to fulfill your requirements.
An RFI should include
A Request for Proposal (RFP) is a formal method of receiving detailed and comparable proposals from different suppliers for a defined product or service. It is a comprehensive document that should provide all the required information needed to make an informed purchasing decision.
Preparation of the RFP is important and time spent at this stage will ensure good responses. Often an information meeting is held to brief suppliers and answer any questions. An RFI may be used prior to an RFP if needed.
It should include at least
A Request for Quotation (RFQ) is a competitive bid document used
when inviting suppliers and subcontractors to submit a bid on projects or products. An RFQ is suitable for sourcing products that are standardized or produced in repetitive quantities. A technical specification must be provided as well as commercial requirements. Sometimes an RFQ can be preceded by an RFP where the shortlisted suppliers are requested to provide a more detailed price quote.
The RFI, the RFP and the RFQ are all tools that can be used separately or in combination to achieve a successful sourcing solution.