Request for Information (RFI), Request for Quotation (RFQ) and Request for Proposal (RFP) designate the activities that are performed when acquiring equipment or materials that will be utilized in the company. In most situations, the exact names that have been mentioned may not be utilized but the activities that are performed in the process will always be the same. RFI have the purpose of acquiring information that will be utilized in decision-making during the acquisition process. Although most documents are legally binding in an organization, the RFI is not. The RFQ is a commitment written by the supplier that they will provide a service or product at the quoted price for as long as the period stated in the RFQ is adhered to. On the other hand, the RFP is a document that is utilized to specify the requirements of the customer; supplier will strive to provide a solution that will solve these requirements. Most RFPs are legally binding which require that the supplier provide the quoted items with the specifications with them. Formal RFPs, just like RFQs, are the commitments that are made by the supplier that they will provide the products that are stated at a given quoted price and at a given time. They are commonly utilized for commodity products where their technical specifications can be identified easily. RFPs are utilized for the products that are custom-built.
RFIs are utilized in situations where there are many suppliers thereby making it difficult to identify the genuine supplier who will provide the stated products. They are also utilized in situations where the customer is not sure of the types of products available in the market.
There are distinct difference between RFP and RFI; RFI is utilized to acquire information about the products and services that are sought by the customer while RFP is utilized to acquire information on how the supplier will choose to create a service for the supplier. The RFQ is utilized to acquire the value/worth or the price of the product or service.
The advantages that come with the use of RFI include the fact that information is achieved in a structured and formal way. It is also a source of information for suppliers so that they are aware that there is competition going on. Suppliers will also learn from the RFI document that the whole process of acquisition will not favor any one of them if they do not meet the requirements.
Bibliography
Chadwick, S. (2007, 04). The RFI/RFP process: Opportunities for those who are prepared. Retrieved 08 10, 2011, from http://www.ipa.org/files/2007-02sales.pdf
Hughes, E. (2007). Finding outside resources: The RFI, RFP/RFQ approach. Retrieved 08 10, 2011, from http://www.simplexity.net/articles/simplexity_rfp_rfi_paper.pdf
