Choosing RFI RFP RFQ as a sourcing tool
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
- Table of contents
- Introduction and purpose of the RFI
- Explanation of scope
- Abbreviations and terminology
- Template to complete
- Details of next steps - RFP or RFQ
Why use an RFI?
- To compile detail about potential suppliers and their capabilities
- To advise potential suppliers that you intend to source this product or service competitively
- To show that you are acting fairly and including all participants
- To gather information in a way that decides the next step
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
- Table of contents
- Confidentiality or non-disclosure agreement
- Basic information about the client and the process
- Extent and scope of the project
- Proposed time frame
- Detailed design information and requirements
- Commercial requirements
- Evaluation and award criteria
- Submission instructions
Why use an RFP?
- You are notifying suppliers of your intention to buy certain products or services.
- You get a formal submission from the chosen suppliers to enable comparison of the proposals
- You show that you have a formal and fair process without favoring a preferred supplier.
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.
Learn more About . . .
Government RFPs – to bid or not to bid
Government RFPs take time and effort to complete. Be aware of their processes so that you can decide whether to bid or not.
Two RFP examples one for goods and one for services
Using a common RFP format it can be adapted for goods or services - here are two RFP examples
RFP format and content
The RFP format is as important as the content – make it easy for the supplier to submit a quality bid
5 key elements in an RFP review
An RFP review is essential to ensure quality responses - 5 main points to include in an RFP
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