A request for information (RFI) is a formal process for gathering information from potential suppliers of a good or service. RFIs are intended to be written by customers and sent to potential suppliers.
A request for a quote (RFQ) is sent when you know exactly what product/service you want, and you really only need to know the price.
A request for proposal (RFP) is a document that an organization, often a government agency or large enterprise, posts to elicit a response -- a formal bid -- from potential vendors for a desired IT solution.
Received a request for an RFI, RFQ, or RFP? Start filling out what information you can and then send it to your manager to complete.
When a buying organization disseminates a Request for Information (RFI), they are seeking general information about prospective suppliers’ capabilities and services/goods. The next phase in the procurement process involves either a Request for Quotation (RFQ), or a Request for Proposal (RFP). When a company distributes an RFQ, they are simply asking for suppliers’ pricing on the requested services. An RFP, on the other hand, is a request for a comprehensive overview of suppliers’ company background, detailed descriptions of the requested products/services, and often times the completion of a specific questionnaire required for submission.
As a small or early-stage business, having the following eight (8) items on-hand and up-to-date will accelerate the tedious yet vital procurement process to winning a contract:
1. Professional Cover Page
First impressions are everything – be sure to design a professional and clean cover page that accurately reflects your company’s identity. This should represent of your company’s brand, the title of the requested service or product, and the proposal date.
2. Table of Contents
Provide your audience with an understandable and easy-to- read overview to reference the sections they’re most interested in. If possible, number the sections according to the information requested by the buying organization.
3. Company Background and Overview
Let’s face it, without this component the procurement team will have no idea who or what your company is about. A cover letter and executive summary are also appreciated elements during the bid process.
4. Comprehensive Product Descriptions
An all-inclusive, detailed overview of the requested product or service should completely exhaust any questions the prospective buyer may have. Be organized in your approach and break down your paragraphs into digestible sections with bolded or italicized headings.
5. Implementation Plan
The implementation plan includes your company’s step-by- step timeline for new client onboarding. The plan should include a timeline overview in order for your prospective client to schedule accordingly with their own team.
6. Financial Review
Be prepared to detail up to two (2) to three (3) years of your company’s financial information. To avoid the headache, be proactive and make sure your company’s financial review is up-to- date for the past 2-3 years.
7. Referrals
Before entering the RFP, RFQ or RFI submittal process, it’s wise to have three-four client referrals or testimonials on-hand. Choose wisely: these referrals should have a positive experience doing business with your company.
8. Pricing Outline
Having a standard pricing sheet for all of your products/services will make your life way easier when the RFIs, RFQs and RFPs start rolling in.
