Freelance Business Writer in Supply Chain
Many people use these terms interchangeably, which can be really confusing so let’s clarify them first.
What’s the difference?
A Request for Quotation (RFQ) is used when it is pretty clear that we know what we want and can specify it accurately. It is typically used where the items being procured are commodities or products, often low-value and high volume, where numerous suppliers could supply the same thing. One example is a branded item like a laptop computer. The RFQ should make it clear that you expect competitive bids. You may often hear it referred to as “3 bids and a buy”. RFQs don’t work very well with complex solutions or variable services.
A Request for Proposal (RFP) is a more in depth document that we use where there is a business need or problem to be solved where there is no off-the-shelf solution. You know what you want (mostly!) but you need some help.