Information gathering is crucial to sourcing and procurement. To choose sourcing partners, you may need to seek supplier details, depending on the project and research needed. Knowing how to file a request can greatly impact the responses you receive and the information you have to make judgments. When should an RFI (Request for Information) be sent instead of an RFP or RFQ? What information should you gather while starting a search?
How does the RFI differ from the RFP and RFQ? Know the distinctions and when to use each to make faster and more successful business decisions when sourcing goods and services for your company.
Meaning of RFI?
A request for information is a general inquiry to a supplier regarding their services, features, and capabilities. A preliminary review stage, the RFI requests product and feature information.
The RFI is meant to learn about suppliers who meet your first purchasing requirements, not pricing or service tier information. It researches and plans a company goal or challenge.
What distinguishes RFI, RFP, and RFQ?
While RFI, RFP, and RFQ are often used interchangeably, they are distinct processes with different aims. We lose the meaning of each request by using the terms interchangeably. RFP and RFQ should be defined first for clarity.
Request for bid
A request for proposal encourages suppliers to propose solutions for a business issue. The buyer frequently follows RFI answers with an RFP. The RFP provides more depth and context about the business challenge or goals so suppliers can propose creative solutions.
Quote request
The request for quotation offers more extensive parameters than an RFP to estimate the solution’s cost. Fair due diligence with previous sourcing activity yields this specificity.
The RFQ demands stakeholders to identify their needs and implementation in depth. The RFP allows for flexibility and creative problem-solving, but the RFQ lists every success parameter. If they can meet the specifications, the supplier responds the RFQ to be considered for later bidding.
As you can see, RFI, RFP, and RFQ serve distinct purposes and demand different levels of problem and solution understanding. While the RFI allows the organization to explore its choices, the RFQ is prescriptive and focuses on a certain solution and cost.
Tender request
Request for tender is another key term. This is a different but connected process for stakeholders seeking goods suppliers. The open RFT requests sealed bids from suppliers for goods and services.
When should you use RFI, RFP, or RFQ?
As indicated previously, RFI, RFP, or RFQ relies on project stage and buyer understanding of available options.
The RFI process helps you understand your vendors, their capabilities, and their offerings. This is best if there are several options or you’re still learning about the problem. The RFI process might reveal solutions and lead to an RFP.
The RFP goes further. Buyers can acquire more information from providers who completed the RFI. While the RFI prequalifies providers, the RFP lets buyers pick partners. Suppliers can also collaborate by recommending service solutions to business problems in the RFP. You can then create evaluation criteria for two or three potential providers.
The RFQ is the most thorough yet limited request format. The RFQ works best when the buyer knows which solution will fit their framework or infrastructure. The respondent uses a set of specifications to find providers that can suit their demands, thus it doesn’t involve much innovation.
What information should an RFI include?
Good RFIs include questions and parameters that help suppliers tell buyers about relevant services. The RFI response should provide buyers with enough fundamental information to shortlist providers and proceed with procurement.
A general RFI should be straightforward for suppliers to fill and users to evaluate. So vendors know how to reply, use a uniform RFI format or template.
An RFI should not be as detailed as an RFQ or RFP and should not take as long for the supplier. Complex RFIs get fewer responses than well-written ones with simple templates.
Writing a request for information
RFIs are easy to use to gather supplier information. Presenting enough detail with flexibility is key.
Your RFI should typically include:
- Project or challenge outline. Describe the project and its goals. Provide an introduction to your company.
- Timing for responsiveness or performance. Tell suppliers the project or purchase timeline and how long they have to respond to an RFI.
- Specific project info. Provide product or service specifications. This helps providers offer correct data.
- Guide for prospective vendors. The RFI should specify how vendors can respond with information.
- Space for details. Regular suppliers of problem-solving services may have more insight. Allow vendors to submit essential information to your paperwork.
Example RFI
Dozens of RFI creation instances exist. Several criteria will determine your RFI outline and questions:
- Your industry/business. Construction RFIs differ from software purchase RFIs.
- The goods or service you require. Deliverables will shape the request process.
- Details of the business challenge. Your knowledge of the business need will lead the request and assist bidders react.
Example RFI: A spa needs a supplier for spa supplies and products.
Outline
This RFI collects spa supply market data for 10 wellness firm locations. The corporation will order spa and consumer products from one source.
Timeframe
Monthly orders for these products will begin for all locations 60 days after the contract is signed. Complete and return RFI replies within 30 days of receiving this notice.
Specifics
- Linens, treatment items, tables, equipment, and spa instruments like salt stones and bolsters should be available from the supplier.
- Organic, fair trade, and ethical vendors will be preferred.
Advice for responses
Responding suppliers should email the address or use an online portal if accessible. Submissions after the performance period are disregarded. Send queries to the specified email address with “Spa Supplies RFI” in the subject line.
Other info
Suppliers should submit more information about their products or product lines, logistics, and other relevant information for the supplier shortlist.
