In procurement, acronyms can blur together—especially RFP and RFQ. While both are tools for sourcing, they serve different purposes, demand different inputs, and produce different outcomes. Choosing the right one saves time, reduces risk, and helps you buy the right solution at the right price.
What is an RFQ?
A Request for Quotation (RFQ) is a price-focused document used when you know exactly what you need. You issue detailed specifications, quantities, delivery terms, and service levels, and suppliers respond with prices and lead times. RFQs are transactional and best suited to standardized goods or clearly defined services.
Use an RFQ when:
•Requirements are clear, stable, and comparable.
•The market is competitive with many qualified vendors.
•You prioritize lowest total cost and speed.
•Evaluation criteria are primarily price, delivery, and compliance.
Common RFQ examples:
•Office supplies with fixed SKUs
•Commodity hardware (laptops with fixed configurations)
•Standardized logistics lanes with defined Incoterms and volumes
What is an RFP?
A Request for Proposal (RFP) is solution-focused. You describe a problem, desired outcomes, and constraints, and suppliers propose approaches, methodologies, and pricing. RFPs capture innovation and reduce risk when specifications are not fully known.
Use an RFP when:
•You are buying complex solutions or services.
•You need vendor expertise to shape the approach.
•Non-price factors (capability, methodology, security, scalability) matter.
•Total cost of ownership and long-term value outweigh sticker price.
Common RFP examples:
•Implementing an ERP system
•Managed services (IT, facilities, customer support)
•Custom manufacturing or design-build projects
Key differences at a glance:
•Objective: RFQ seeks best price for defined specs; RFP seeks best solution for desired outcomes.
•Scope maturity: RFQ requires fixed specs; RFP allows suppliers to shape the solution.
•Evaluation: RFQ is primarily quantitative (price, lead time, terms); RFP blends qualitative and quantitative factors (technical fit, risk, experience, roadmap).
•Complexity: RFQ fits simple, repeatable buys; RFP fits complex, strategic buys.
•Time and effort: RFQ cycles are shorter; RFPs require more stakeholder input and analysis.
What to include
RFQ essentials:
•Detailed specifications, SKUs, drawings, or service descriptions
•Quantities, volumes, and delivery schedule
•Quality standards, SLAs, and acceptance criteria
•Contract terms, warranty, and payment terms
•Pricing template with apples-to-apples comparability
RFP essentials:
•Business goals and problems to solve
•Functional and non-functional requirements (security, compliance, scalability)
•Use cases and success metrics
•Constraints (budget range, timelines, integration points)
•Evaluation criteria and weighting
•Required vendor qualifications and references
•Pricing structure (e.g., fixed fee, rate card, milestone-based)
Evaluation approaches
•RFQ: Use a weighted price model that includes total landed cost (unit price, freight, tariffs, duties), delivery reliability, and payment terms. Automate comparisons with a standardized bid sheet.
•RFP: Apply a scorecard (e.g., 40% technical, 30% commercial, 20% delivery, 10% risk/security). Run scripted demos or proof-of-concepts to validate claims.
Timelines and governance
•RFQ timeline: 1–3 weeks for issue, clarifications, quotes, and award.
•RFP timeline: 4–12 weeks including discovery, Q&A, demos, site visits, and negotiations.
•Governance: RFQs can route through tactical buyers; RFPs need cross-functional oversight (IT, legal, security, finance) and a formal decision log.
Pitfalls to avoid
•Using an RFQ for a complex need just to “get three bids.” This drives low prices but high failure risk.
•Issuing an RFP without clear success metrics. You’ll get glossy proposals that miss the mark.
•Over-specifying RFQs (locking out equivalent alternatives) or under-specifying RFPs (vague outcomes).
•Ignoring total cost of ownership: training, support, change management, and switching costs.
•Skipping Q&A and vendor briefings—ambiguity leads to mismatched quotes and issues later.
How to choose quickly
•If you can write a spec sheet that any qualified vendor can fulfill, use an RFQ.
•If you need vendor insight to shape the solution or success hinges on approach and capability, use an RFP.
•When in doubt, run a short RFI first to test the market and decide.
Measuring success
•RFQ KPIs: unit cost reduction, on-time delivery, defect rate, lead-time variance.
•RFP KPIs: business outcomes achieved, user adoption, SLA attainment, risk reduction, ROI vs baseline.
Bottom line
RFQs help you buy known items at competitive prices. RFPs help you select the best-fit solution for complex needs. Match the method to the maturity of your requirements and the complexity of the market—your budget, timeline, and stakeholders will thank you.
