RFP / RFI / RFQ

Difference Between RFI, RFQ, and RFP

Aspect	RFI (Request for Information)	RFQ (Request for Quotation)	RFP (Request for Proposal)
Purpose	Gather general information about vendors, solutions, or capabilities.	Obtain detailed pricing and cost estimates for specific products or services.	Solicit comprehensive proposals with technical, functional, and financial details.
Focus	Exploring options and understanding market capabilities.	Pricing and specific deliverables.	Comprehensive solution design, implementation, and support plans.
Content	High-level questions about vendor expertise, available solutions, and industry insights.	Detailed request for prices, delivery terms, and conditions for predefined requirements.	Detailed scope, technical requirements, and evaluation criteria.
When Used	Early stages of procurement to assess options.	When requirements are clear, and the goal is to compare prices.	When detailed proposals and creative problem-solving are needed.
Typical Outcome	Shortlist of potential vendors or solutions.	Pricing comparison and vendor selection based on cost efficiency.	Selection of the best-fit vendor for the project based on quality, approach, and cost.
Examples
Understanding cloud platform options for a BFSI firm.	Getting quotes for new servers.	Selecting a vendor for a full-scale cloud migration project.

When to Use Each

1. RFI (Request for Information):

   • Use Case: When you need to understand the capabilities, trends, or innovations in a market before defining your requirements.

   • Example: A bank exploring AI-based fraud detection tools asks vendors for an overview of their solutions and capabilities.

2. RFQ (Request for Quotation):

   • Use Case: When you have a well-defined need or product specification and require competitive pricing.

   • Example: An insurance company seeks quotes for upgrading its data storage capacity.

3. RFP (Request for Proposal):

   • Use Case: When you need a detailed proposal addressing your technical, functional, and financial needs, often for complex projects.

   • Example: A financial institution wants to implement an end-to-end loan origination platform and seeks a tailored proposal from vendors.

Understanding these differences ensures you use the right tool for the right stage in the procurement process, optimizing vendor selection and project success.