RFQ vs RFP vs RFI: Understanding Different Procurement Request Methods

The difference between RFQ vs. RFP vs. RFI is based on the knowledge of the buyer. Use a Request for Information when you still need to learn more about the market, supplier capabilities and/or available production methods. Use a Request for Proposal when the business need is known, but the suppliers will put forward solutions to the business need. If the scope of the product/service is sufficiently clear, where there are comparable prices and commercial terms available, use a Request for Quotation.

The common pitfall is to send out an RFQ too early. When the process, material, quantity or quality requirement is still in motion, suppliers make up the rest of the way with their own assumptions. Then, you have a set of prices that seem to be the same on the surface but have no real similarities. These three are not synonymous to the phrase "ask a supplier for information. An RFI is a query that asks “what is it?” An RFP is a question to a supplier on how they would provide a solution. An RFQ is a question asking for the price and terms for a defined scope.

What Are RFI, RFP, and RFQ?

The three requests have different functions during supplier work in daily life. A RFI is a research call. An RFP is a solutions seeking document. When the requirement is sufficiently stable and can be quoted, an RFQ is a price and compliance-focused version. There are slightly different names on the coversheets but the test is the intent of the request, not the three letters on the coversheet.

RFI — Request for Information

A Request for Information is a process that collects information prior to binding a sourcing method. Common topics include supplier profile, manufacturing processes, equipment and capacity, certifications, materials, service models, export experience, and market options.

A real-world manufacturing example: A product team is familiar with a new housing, but has not figured out the options of injection molding, CNC machining, die casting or additive manufacturing. An RFI will reveal if processes will fit the volume, what materials are a viable option, what tooling is needed and which factories have that work.

RFP — Request for Proposal

When the buyer already has a known business challenge or performance requirement and desires that vendors submit their technical approach, production model, implementation plan, time frame, and business structure.

Things get complicated when an entire program of product development is outsourced; when an OEM or ODM is chosen; when a production line is chosen; when industrial equipment is designed; or when a production program involving multiple contract manufacturers is undertaken. The buyer isn't just purchasing a part number. The buyer is purchasing a shipping option.

RFQ — Request for Quotation

When the buyer is able to accurately explain the scope of work, product or service, then a Request for Quotation is appropriate, as suppliers should be able to offer an accurate quote for the same requirement. This can be a machined part, cable assembly, packaging order, molded housing, fabricated part, or a repeat production item that meets controlled specifications, quantities, quality requirements and delivery terms.

This is in contrast to an RFQ which may not be confined to catalog commodities. Even with drawings, materials, quantities, inspection, packaging, and commercial scope clarified, it's still possible for custom manufacturing to go out as an RFQ.

The Core Difference Between RFI, RFP, and RFQ

It's not the document's name that makes the difference between RFQ, RFP, and RFI. It is the question asked by the buyer and the response the supplier is expected; it is also used as a basis of evaluation.

Different Questions Each Document Answers

• RFI: Who supplies, what capabilities, products, technologies and approaches are available?
• RFP: What are the solutions or approaches that each supplier will take to address this business or technical need?
• RFQ: What will be the commercial terms and price for each supplier for this specific scope?

However, if those 3 questions remain in sight as the request is being formulated, the wrong document becomes much more difficult to accidentally issue.

Different Levels of Buyer Certainty

Generally, the level of certainty increases as your project progresses from RFI through RFP to RFQ, but not always. An RFI is appropriate if the problem is known and the market solution is not. An RFP is appropriate when the goal is clearly defined but there may be some flexibility in how it is accomplished. An RFQ will be appropriate if the buyer has a clear idea about what is required to be delivered.

When a Buyer already has an approved drawing and a stable forecast the Buyer does not have to fill out an RFI for ceremony. If a buyer is still unable to identify the process, then they should never assume the scope can be bound for a quote.

Different Supplier Response Expectations

Usually the company information, capability descriptions, process notes, catalogs, certifications, references, and general technical input will all be included in an RFI response. Typical responses to the RFP will consist of a solution, the methodology, technical approach, project schedule, resources, risks, assumptions and a business model. RFQ responses must contain an itemized price, lead time, MOQ, payment terms, quote validity, tooling, exclusions and commercial conditions to that scope.

Request a answer that you can assess. An RFI that asks for a specific dollar price for an open-ended volume adds to the noise. An RFQ that requires suppliers to come up with the product is an unequal RFQ.

Different Evaluation Priorities

The essence of RFI review is knowing the market, your capabilities, the relevance, and the quality of your shortlist. The key drivers during the review of an RFP are solution quality, technical approach, experience, risk of implementation, service, total value, and commercial fit. After the scope is normalized, the key factors influencing the RFQ review are price, technical compliance, lead time, quality, terms, and supplier risk.

When Should Buyers Use an RFI?

An RFI is useful if the buyer wants to find out before buying, specifying it, or whether or not to proceed with suppliers. Not a low level RFQ. Its purpose is to minimise uncertainty in the market and in the solution before the detailed request for the sourcing is written.

When the Manufacturing Process Is Not Yet Decided

Consumers may often know the function of the item before they understand the process. Concept sketches can have the appearance of being viable options for CNC machining, injection molding, casting, fabrication, or additive manufacturing and all behave differently at volume.

An RFI may inquire what process the supplier suggests, what materials that can be used, what the minimum volume is, which tools are needed, what are the typical lead times, etc., and what design elements place a risk on cost and/or quality. It's a detail in the specification later. It should not be assumed within a quotation form.

When the Buyer Needs to Discover Supplier Capabilities

The pages of a catalog do not necessarily contain the equipment, certifications, capacity, testing, engineering support, tooling control, or quality system that is behind a product. They are typically used in custom cables, electronics assemblies, industrial machinery, and specialty packaging. Very different real capabilities can be achieved in same category.

An RFI is a process to find out who can actually do the work, rather than spending time on a proposal or quote.

When the Market or Supplier Base Is Unfamiliar

When purchasing a new product line, area, process or even a new supplier market, the customer will typically acquire the knowledge of who is supplying, what the common business approaches are, what are the production limitations and what is the lingo used in that industry. In that case, an RFI is the perfect first step.

It will not affect firm prices or lock capacity. Its value lies in the understanding of the market and a b

What to Ask Suppliers in an RFI

The following questions are useful for an RFI: Company profile, processes, equipment, materials, capacity, quality systems, certifications, industry experience, typical MOQ, sample capability, lead times, location, export experience, and reference projects. There is no need to seek an in-depth binding quote until the requirement has been identified. You've got to be more definite in your request if you're looking for a price.

When Should Buyers Use an RFP?

When the buyer has a clear idea of what is required, and wishes suppliers to submit the most technically, operationally, and/or commercially viable method of achieving the required outcome, an RFP is suitable. The buyer is deciding the manner in which the work will be performed, not just the cost of a “bill of materials”.

When Multiple Technical Solutions Are Possible

An RFP is beneficial if there is a reasonable choice of supplier that can submit alternative materials, processes, equipment layouts, production systems, service models, or implementation methods. This includes the complete design of a production line, from concept to mass production, the selection of an automation system and the outsourcing of a multi-stage manufacturing program.

A fixed quote form will obscure differences that are important if multiple ways lead to the same result.

When the Buyer Needs Engineering or Design Input

Proposals may include DFM, engineering, prototype, tooling, validation, production launch, quality planning, and support from the supplier for the life of the product. The buyer should still specify goals, restrictions, performance goals, budget (if applicable), schedule and criteria. Then, instead of having to fill in on a completed drawing pack, the supplier can explain the approach.

When Supplier Experience and Methodology Matter

There can be two OEM / ODM candidates who can produce a similar product, but still differ in design support, tooling management, testing, compliance, launch discipline and production transfer. If those differences are going to make all the difference in the relationship, the request should include methodology, resources, risk control, communication, after-sales support and not just a unit price.

What to Ask Suppliers in an RFP

Request the solution proposed, the technology, the scope of work, milestones, responsibilities, resources, quality plan, risk analysis, timeline, assumptions, commercial model and related experience. RFP responses are not as easily comparable as the RFQ responses as the vendors can suggest alternative routes. Communicate the criteria of the evaluation before sending out the RFP; otherwise, it looks like an apples vs. oranges discussion.

When Should Buyers Use an RFQ?

Use an RFQ when the buyer has a good idea of the scope of a product, service, or manufacturing and suppliers can quote the same requirement. That includes “custom work,” as long as the drawings and specifications, quantities, quality, delivery requirements and commercial limits are fixed.

When the Product or Service Scope Is Defined

The buyer should understand what is being purchased: product identity, specification, material, quantity, quality requirement, packaging, delivery and any tooling or testing that needs to be supplied. Once those details are available, the types of products that often qualify for an RFQ are custom parts, cable assemblies, packaging, molded products, fabricated products, and repeat production goods.

When Supplier Quotes Need to Be Comparable

When multiple suppliers need to bid an identical controlled requirement, the best approach is to use an RFQ. Provide identical documents, quantity assumptions, quality requirements, and response instructions that are applicable. The buyer is responsible for supplying all and consistent information, otherwise an RFQ will be unable to yield equivalent prices.

When Price and Commercial Terms Are Major Decision Factors

When the buyer may require itemised pricing, lead time, minimum order quantity (MOQ), tooling, payment terms, quote validity, packaging, freight and treatment, exclusions and supplier assumptions, then it's time to issue a RFQ. Price matters. Not the only criterion yet. There remains the question of technical compliance, quality, capacity, delivery reliability, and risk of sourcing.

When a Formal Manufacturing RFQ Is Premature

Never issue a final RFQ when the design, material, process, quantity, quality or delivery requirement is not yet clearly understood. Get an RFI or a RFP first or discuss feasibility before quoting the scope.

RFI vs RFP vs RFQ in Manufacturing Examples

The appropriate request method will vary with confidence of the buyer and the nature of the supplier reply.

Example 1 — Developing a New Industrial Product

A company has an industrial product idea, but hasn't picked any materials, process, tooling strategy or production partner. Begin with an RFI, which is conducted to determine what the potential supplier's capabilities and process options are. If supplier is required to offer a development and production solution, move to an RFP. Wait until after a design and production scope are finalised and issue an RFQ later. The first time you ask for a quote, the processes you assume and the prices you quote are generally wrong.

Example 2 — Selecting an OEM/ODM Manufacturing Partner

The buyer must find a partner in development, prototyping, tooling, compliance, packaging, production and delivery. At this point, it is typically better to use an RFP than an RFQ. It is based on capability, approach to development, quality system, engineering support and commercial model. An unfinished specification will not give a fair ranking to unit price to those partners.

Example 3 — Sourcing a Defined Custom Component

The buyer has a drawing approved, material specification, quantity forecast, requirement for quality and requirement for packaging and delivery schedule. It is the right document, an RFQ.It's the right document: an RFQ. The suppliers can offer the identical defined product and the buyer can make comparisons on price, lead time, quality, tooling and terms.

Example 4 — Researching an Unfamiliar Manufacturing Market

The buyer has never purchased the product in the category and/or is visiting a new sourcing area and has no idea who is producing the product, what technologies are used, what certifications are required, or how the product is produced. An RFI is the first step. A poorly drafted RFP or RFQ is generally lacking in sufficient information to include the best option or correctly compare the options.

Can Buyers Use More Than One Request Method?

RFI, RFP, and RFQ can be used in sequence or on their own. An RFI provides the buyer with an understanding of the market, an RFP to assess potential solutions and an RFQ to confirm pricing once the scope is set. They are not all necessary for every project. An RFQ might be the only request needed for a repeat order for a particular product component. Several stages of a complex product-development program may be required.

A Common RFI-to-RFP-to-RFQ Path

1. RFI to determine suppliers and solutions available.
2. RFP to assess technical and operational solutions.
3. Once the preferred approach or specification has been established, RFQs will be issued to receive comparable pricing.

As more clarity is gained regarding the project, update the documents, evaluation criteria, and supplier shortlist.

When an RFQ Can Be Issued Without an RFI or RFP

Use an RFQ if the product, process, supplier type, specifications, quantity, quality and commercial requirements are known. Common cases include repeat-production parts, standard industrial parts, approved packing styles, and replacement parts that have controlled drawings.

When an RFQ Should Be Reissued After an RFP

An RFP can generate a number of proposals for a solution. Once an approach is chosen or refined, ask for a more prescriptive RFQ to get the same final scope to be priced by qualified suppliers. Avoid asking for suppliers to re-value the original RFP proposals.

How to Choose the Right Procurement Request

If you're going to engage suppliers, you have to be sure you know what you know, what the supplier has to offer and how you'll evaluate the answer. This is the real RFI RFP RFQ comparison.

Ask What the Buyer Already Knows

• Is there a clear product/service requirement?
• Is there an existing manufacturing process?
• Is there a definition of materials, quantities and quality requirements?
• Need suppliers to bring a solution?
• Does our primary objective here just involve getting to know the market?
• Are suppliers able to offer same scope?

The responses are an RFI, an RFP, an RFQ, or a mix.

Ask What the Supplier Must Contribute

An RFI is a request for information that is sent to suppliers. They are requested to submit a solution or implementation proposal in an RFP. They are required to submit a quote for a certain set of requirements in an RFQ. Correlate the document with the input needed. Avoid creative solutions within the confines of an RFQ, and don't assume a guaranteed price from an exploratory RFI.

Ask How the Responses Will Be Evaluated

Determine which factor(s) you are going to rate: Capability, Technical approach, Project execution, Total value, Price, Lead time, Quality, Commercial compliance. RFI responses are vetted for market and capability information. Solutions and delivery approach will be evaluated on RFP responses. After alignment, the RFQ responses are compared for price and compliance.

Use a Simple Decision Rule

• When the buyer must find out what is available, then use an RFI.
• When the buyer requires that suppliers be responsible for the design and/or proposal, an RFP should be used.
• When the buyer is aware of the items he/she will need to be provided, and would like to request prices, an RFQ should be used.

This is a minimum requirement and not the only criteria, and as such it is not a reflection of project complexity, market conditions, technical risk and internal procurement policy.

Common Mistakes When Choosing Between RFI, RFP, and RFQ

The wrong request method produces weak responses, wasted effort, thin competition, and misleading commercial comparisons.

Issuing an RFQ Before the Scope Is Defined

An RFQ is premature when product configuration, process, material, quality, quantity or delivery requirement is still open. Depending on the nature of the uncertainty, the first step is to use an RFI, an RFP, a technical discussion or a design review.

Using an RFI When the Buyer Actually Needs Pricing

An RFI can describe capability without producing the itemized, comparable prices needed for a purchase decision. A buyer who asks about factory capability but never provides quantities, drawings, or quotation instructions should not be surprised when the replies contain no usable price.

Using an RFP When the Product Is Already Fully Defined

An RFI can say what you can do, but it won't provide the prices (with the itemization and comparison) that are required for a purchase decision. If a buyer is asking questions on capability, but does not specify quantities, drawings, or quotation instructions, he should not be dismayed should no usable price be given in the responses.

Treating an RFQ as a Competition for Unit Price Only

An RFP can be ineffective in driving a level of variation that is not desired by the buyer when they require a level of competition through a scope that is the same. Different suppliers will offer different materials, methods or assumptions and this makes comparison more difficult. An RFQ is typically more efficient for repeatable products, controlled components and defined manufacturing services.

Failing to Change the Document as the Project Matures

Check the technical compliance, quality, capacity, lead time, tooling, payment, packaging, delivery and supplier risk even if an RFQ is the appropriate document. The lowest price isn't necessarily the best deal if the scope, quality or terms of commercialisation differ.

Summary Guidance — Match the Procurement Request to the Buyer’s Question

RFI, RFP, and RFQ solve different procurement problems.

• The three procurement documents are different in addressing issues, namely, RFI, RFP, RFQ.
• Carry out an RFI to learn more about the market and supplier capabilities.
• Utilise an RFP to compare the approach suppliers would take to a defined need or technical challenge.

Request comparable pricing with an RFQ for a specific scope of product, services or manufacturing.

There is a question to ask suppliers before they are contacted: Is there a need for information, a proposed solution, or a price for a defined scope? That's typically the right procurement request method.