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Request for Proposal (RFP) is a documented request from an organization that is interested in acquiring goods or services. It is created by the customer for holding a competition/auction. By applying the RFP when searching for a counterparty, the contracting authority informs a wide range of suppliers about the planned purchase. By this action, the customer encourages the supplier to present a better offer than in person. The Supplier recognizes that procurement is conducted on a competitive basis and competing organizations will also participate in the RFP. In recent years, such a procedure for determining the counterparty has become widespread. In order to comply with the principle of coverage of a wide range of people and involve more participants in the RFP process, it is recommended to make a request for proposals on specialized RFP electronic platforms on the Internet. The request formulates goals, requirements for the project, product or service, determines the quality criteria for the product or service, and also declares the criteria for selecting a supplier. The request may dictate the structure and format of vendor bids so that bids can be matched. Click to learn how to write a great mobile request for proposal.
Request for Quotation (RFQ) is a documented request from an organization interested in purchasing goods or services to a specific or indefinite group of suppliers in order to determine possible purchase prices. Used when discussions with bidders are not required (mainly when product or service specifications are already known) and when price is the main or only factor in bidder selection. The RFQ can also be used as a preliminary step before a full RFQ to determine the overall price range. In this scenario, products, services, or vendors may be selected from the results of the RFQ for further investigation. An RFQ usually includes more than a request for a price for a product or service: often suppliers are also required to provide information about the terms of payment, the quality level of the product or the scope of the contract. More on the topic on Orangesoft blog.
Request for Information (RFI) – a request that is published or sent by an organization interested in purchasing any goods or services. The purpose of the document is to collect written information about the capabilities of various vendors. As a rule, the request assumes a certain structured response format, due to which it can be used to compare information. Orangesoft blog refers to RFI as a method primarily used to collect information to help decide on next steps. Therefore, RFI is rarely the final step and is often used in combination with Request for Proposal (RFP) and Request for Quotation (RFQ). In addition to collecting general information, an RFI is often used as a bait sent to a wide range of vendors in order to prepare a potential vendor, develop a strategy, create a database, and prepare for an RFP or RFQ.