Request for Proposal vs Request for Quotation vs Request for Information: What’s the Difference?
When managing strategic sourcing or procurement processes, businesses often rely on formal documents like the Request for Proposal (RFP), Request for Quotation (RFQ), and Request for Information (RFI). While they may sound similar, each serves a unique purpose within the purchasing lifecycle.
In this article, we’ll break down the differences between Request for Proposal vs Request for Quotation vs Request for Information, explore when to use each, and offer real-world examples to guide your procurement strategy.
❓What is a Request for Information (RFI)?
A Request for Information (RFI) is the most exploratory type of request. It is used at the early stage of the procurement process when an organization needs to gather market insights and better understand available products, services, or providers.
When to Use an RFI:
- When exploring new technologies or vendor capabilities
- When preparing for a future RFP or RFQ
- When you want to compare high-level offerings and trends
What to Include in an RFI:
- A description of the business problem or need
- Open-ended questions to invite creative or informative responses
- Requests for company background, experience, or capabilities
⚠️ An RFI does not request pricing or detailed proposals. Its purpose is to gather knowledge, not select a vendor.
📄 What is a Request for Proposal (RFP)?
A Request for Proposal (RFP) is a formal document used when you have a clear understanding of your problem or project but are open to different approaches to solving it. You want vendors to submit detailed proposals including methodologies, timelines, qualifications, and pricing.
When to Use an RFP:
- When dealing with complex projects or services
- When comparing multiple vendor approaches
- When evaluation criteria go beyond price (e.g. quality, innovation, support)
What to Include in an RFP:
- Background and scope of the project
- Technical or functional requirements
- Proposal submission instructions
- Evaluation criteria
- Project timeline and budget expectations
💲What is a Request for Quotation (RFQ)?
A Request for Quotation (RFQ) is used when you know exactly what you need to buy and are primarily interested in comparing pricing and delivery terms. It’s the most transactional and straightforward of the three.
When to Use an RFQ:
- When purchasing well-defined, standardized goods or services
- When price is the main decision factor
- When you want to receive competitive quotes quickly
What to Include in an RFQ:
- Item or service specifications
- Quantities
- Delivery location and deadline
- Payment terms
- Format and deadline for quotations
📌 In many industries, Request for Quotation is also known as Invitation to Bid (ITB) or Price Inquiry.
RFI vs RFP vs RFQ: Key Differences
| Criteria | RFI (Request for Information) | RFP (Request for Proposal) | RFQ (Request for Quotation) |
|---|---|---|---|
| Purpose | Explore market and gather insights | Get detailed solutions to a defined problem | Obtain pricing for a known product/service |
| Complexity | Low | High | Low |
| Detail required | General and open-ended | Technical and comprehensive | Precise and specific |
| Evaluation criteria | Informational only | Strategy, value, approach, price | Price, delivery, and terms |
| Best used for | Research and planning | Strategic sourcing | Transactional purchasing |
Real-World Examples
✅ RFI Example:
A company is considering automation tools but doesn’t know what’s available in the market. It issues an RFI to gather information from vendors about capabilities, pricing models, and deployment options.
✅ RFP Example:
After analyzing the RFI responses, the company defines a project scope and sends out an RFP to qualified vendors, asking for full implementation proposals for a process automation platform.
✅ RFQ Example:
The company’s IT department needs to purchase 30 laptops with predefined specifications. It issues an RFQ to three suppliers, requesting prices and delivery timelines.
How RFI, RFP, and RFQ Work Together
These three tools are not competitors—they’re complementary stages in a well-structured procurement process:
This layered approach enables informed decision-making, better vendor relationships, and more strategic sourcing.
Conclusion: Use the Right Tool at the Right Time
Understanding the differences between Request for Proposal vs Request for Quotation vs Request for Information is essential for any organization looking to improve how it engages with suppliers.
- Use an RFI to explore options
- Use an RFP to evaluate proposals
- Use an RFQ to get the best deal
📥 Need templates? Get our free BPMN-based model for procurement processes that include RFI, RFP, and RFQ steps—available as PDF or editable diagrams in the HEFLO modeler.
