RFI vs RFP: definition and key differences

The difference between an RFI and an RFP comes down to timing and purpose: RFIs collect early market information, while RFPs formally compare vendors once requirements are defined.

Many teams treat these documents as interchangeable, but they play distinct roles in sourcing. RFIs help buyers understand what solutions exist; RFPs assess which vendor can deliver the best fit; and RFQs finalize pricing once the business is ready to purchase.

Learn how each document works, when to use them, and how they fit together to support a structured, low-risk procurement process.

Key Takeaways:

• RFIs, RFPs, and RFQs serve different procurement stages: explore options, compare vendors, and confirm pricing.
• Their main difference is intent: RFIs inform, RFPs evaluate solutions, RFQs finalize costs.
• Using all three improves selection accuracy and reduces supplier risk.
• They support transparency and compliance, especially in larger or public organizations.

What is an RFI?

A Request for Information (RFI) is a document used to gather general information from potential suppliers at the early procurement stage. It helps procurement professionals conduct initial market research and understand the available solutions before defining project requirements.

Unlike an RFP, an RFI is informal and optional. Organizations use it to collect preliminary information from different vendors, refine their needs, and get a clearer picture of the sourcing process.

Procurement professionals use RFIs to gather general information on:

• The goods and services available,
• The marketplace and industry,
• The offers that could potentially meet their needs

This step supports early decision-making by giving buyers a better understanding of what the market can provide. Once the team has enough context to continue the vendor selection process, they move to the next stage: the RFP process.

What is an RFP?

A Request for Proposal (RFP) is a formal request issued by a buying organization to collect detailed proposals from potential vendors for a specific project. As mentioned above, the difference between an RFI and an RFP is that they belong to different stages of the procure-to-pay process. Where RFIs indicate casual information-gathering, RFPs are formal documents issued by companies looking for new vendors.

In a request for proposal, a buying company lays out its needs in a document and will ask for vendor proposals (or bids) to meet them. They include various elements:

• Background company information,
• Project overview,
• Requirements,
• Any other relevant specifications for a bid.

Vendors will then come back with a response to the RFP with detailed solutions and strategies that meet their needs.

The goal of a Request for Proposals (RFP) is to compare vendors. RFPs evaluate various suppliers over a few important criteria:

• Good or service characteristics,
• Pricing,
• Timeline for sourcing or strategy for implementation,
• Organization ethos and CSG initiatives.

RFPs are used in the supplier vetting process to collect the data needed to make the best decision for the business. It’s considered a best practice in your procure-to-pay to use those tools to:

1. Evaluate vendors,
2. Document the vendor selection process (for management or in case of audit).

In some organizations, especially government agencies using RFP is mandatory. It creates a standard sourcing process that fosters equality and impartiality for all potential vendors. RFP also helps fight corruption and collusion by ensuring an audit trail to justify the decisions.

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What is an RFQ?

RFQ stands for Request for Quotations (or Quotes). It’s the third document used by companies in the sourcing process. It can be used in conjunction with RFI, RFP, or as a standalone.

Where RFPs aim to evaluate potential suppliers globally, RFQs are purely focused on pricing. A request quotation aims to quantify, so buyers know how many goods they can buy at what price.

A Request for Quotation is issued by a purchasing company to ask for the cost of meeting their needs. It includes:

• Details on their requirements (type of product or service) and
• The deliverable expected.

In turn, vendors answer with a detailed pricing plan. Companies tend to issue RFQs when they try to get the best deal possible on goods or raw materials. It works best for products and services that are standardized or off-the-shelf (for example, a specific type of screw or the hourly rate for an external service provider)

The difference between RFI vs RFP vs RFQ is the intention. When issuing request quote documents, businesses are clear with their intention of purchase: they know exactly what they want, how the market operates, and just need the final numbers to make their decisions.

Why are all three important?

RFIs, RFPs, and RFQs are important because they support a structured and transparent vendor selection process at different stages of the procurement process. Each document helps procurement teams gather information, evaluate potential suppliers, and make confident purchasing decisions.

All three help:

• Streamline communication between buyer and vendor,
• Improve supplier risk management,
• Improve vendor management.

It’s useful to use RFIs, RFPs, and RFQs for businesses of all sizes. For big organizations, it helps centralize information and ensure that all departments have their say, so the products services delivered ultimately meet the company’s needs. It’s usually managed by the procurement department.

For smaller businesses, these documents are a way to ensure thoughtful and objective decisions even without a dedicated procurement department or person. For example, a startup CEO can ask his employees to issue an RFQ for large purchases to ensure the best financial decision and prevent maverick spending.

The RFI RFP can also be used here: RFI would inform their research phase, while an RFP can help select the best vendor for a new project.
In general and regardless of an organization’s size, it’s best to adopt a multi-step process for larger and strategic purchases. Using an RFI, RFP, and RFQ helps centralize information and ensure everyone is on the same page, both internally and externally.

For example, if you’re looking for a new vendor to provide computers:

• You can issue an RFI that will help you gather information on the offers and features available.
• Once you’ve learned more, you can issue a proposal RFP request to a few vendors that meet your carefully crafted requirements.
• Lastly, you can issue an RFQ to get the itemized pricing plan before making your purchase.

RFIs, RFPs, and RFPs are standard tools used in the purchase order process. They help customers define their needs, source the best vendor, and connect both parties through a standardized process.

What are their key differences?

The difference between each of these documents is in what they accomplish. Each RFX document has its purpose.

Here is a summary of the main differences between an RFI vs RFP vs RFQ:

In short, deciding to issue an RFI RFP RFQ depends on how informed and ready you are to make a purchase:

• If you know exactly what you want, go for an RFQ.
• If you’re ready to buy but are open to various ideas and strategies, issue an RFP.
• If you’re at the start of your process and want to know what solutions could meet your needs, start with an RFI.