RFX Explained
Master RFI, RFP, RFQ, and RFS. Learn when to use each type, how to structure them, and common mistakes to avoid.
Course Overview
Duration
30-40 minutes
Level
Intermediate
Lessons
6 lessons
What you'll learn:
- Differences between RFI, RFP, RFQ, and RFS
- When to use each RFX type
- How to structure each document
- Common mistakes and how to avoid them
- Best practices for competitive events
- Real-world examples of each format
RFX Overview
RFX is a general term for Request for X, where X can be Information, Proposal, Quote, or Solution. These are formal documents used to gather information from suppliers and make sourcing decisions.
What is RFX?
RFX documents are competitive procurement tools that:
- Standardize how you gather information from suppliers
- Enable fair comparison of supplier capabilities and offerings
- Document requirements and evaluation criteria
- Create an audit trail for sourcing decisions
- Ensure compliance with procurement policies
The RFX Family
Figure 1: RFX family overview
RFI - Request for Information
Gather information about supplier capabilities, market options, and solutions. No commitment to buy.
RFP - Request for Proposal
Request detailed proposals for complex solutions. Includes requirements, evaluation criteria, and terms.
RFQ - Request for Quote
Request pricing for specific items or services. Focus on price comparison for well-defined requirements.
RFS - Request for Solution
Request innovative solutions to business problems. Suppliers propose their own approaches.
Why Use RFX?
RFX processes provide structure and fairness:
Fair Competition
All suppliers receive the same information and evaluation criteria. No favoritism.
Better Decisions
Structured evaluation helps compare suppliers objectively and make informed decisions.
Compliance
Documented process meets procurement policies and audit requirements.
Risk Management
Thorough evaluation reduces risk of selecting wrong supplier or solution.
Pro tip: Don't use RFX for everything. Simple, low-value purchases may not need formal RFX. Use RFX for strategic sourcing, complex requirements, or when policy requires competitive bidding.
RFI - Request for Information
An RFI is used to gather information about supplier capabilities, market options, and potential solutions. It's exploratory and doesn't commit you to buying anything.
When to Use RFI
Market Research
You need to understand what's available in the market before defining requirements.
Supplier Discovery
You want to identify potential suppliers and their capabilities in a category.
Solution Exploration
You're exploring different approaches to solve a business problem.
Requirements Definition
You need supplier input to help define detailed requirements for a future RFP.
RFI Structure
A typical RFI includes:
- Background: Context about your organization and why you're gathering information
- Objectives: What you hope to learn from the RFI
- Information Requested: Questions about supplier capabilities, experience, solutions, pricing models
- Response Format: How you want suppliers to structure their responses
- Timeline: When responses are due and next steps
- Contact Information: Who suppliers should contact with questions
Example: You're exploring cloud-based project management tools. RFI asks: What features do you offer? What integrations are available? What's your pricing model? What's your implementation approach? You use responses to create a shortlist and define requirements for an RFP.
RFI Best Practices
- Keep it focused. Ask only what you need to know.
- Make questions clear and specific. Avoid vague requests.
- Don't ask for detailed pricing. RFI is for information, not quotes.
- Set reasonable response timelines. Suppliers need time to prepare quality responses.
- Share responses with stakeholders to inform requirements definition.
Common mistake: Using RFI when you actually need an RFP. If you have clear requirements and are ready to evaluate proposals, use RFP instead. RFI is for exploration, not selection.
RFP - Request for Proposal
An RFP is used when you have defined requirements and want suppliers to propose how they would meet them. It's the most comprehensive RFX type and is used for complex purchases.
When to Use RFP
Complex Solutions
You need a solution that requires customization, integration, or significant implementation.
Multiple Evaluation Criteria
Price alone isn't sufficient. You need to evaluate capabilities, approach, experience, and other factors.
Strategic Purchases
High-value, long-term relationships that require thorough evaluation.
Undefined Approach
You want suppliers to propose their approach to solving your problem.
RFP Structure
A comprehensive RFP includes:
Figure 4: Comprehensive RFP structure
1. Executive Summary
Overview of the opportunity, timeline, and key requirements.
2. Background and Context
Your organization, business drivers, current state, and objectives.
3. Requirements
Functional requirements, technical requirements, business requirements, compliance requirements. Use must-have vs nice-to-have.
4. Evaluation Criteria
How proposals will be scored. Include criteria weights and scoring methodology.
5. Response Format
Required sections, page limits, document structure, submission format.
6. Timeline and Process
Key dates, Q&A process, submission deadline, evaluation timeline, award date.
7. Terms and Conditions
Legal terms, contract structure, pricing model, payment terms, intellectual property.
Example: RFP for enterprise software includes: Background (current system limitations), Requirements (must support 10,000 users, integrate with ERP, comply with SOC 2), Evaluation (40% functionality, 30% price, 20% experience, 10% support), Response format (executive summary, technical proposal, pricing, references), Timeline (Q&A by date X, submissions by date Y, award by date Z).
RFP Best Practices
- Define clear, specific requirements. Vague requirements lead to vague proposals.
- Separate must-have from nice-to-have requirements. Be explicit about what's mandatory.
- Provide evaluation criteria and weights upfront. Suppliers should know how they'll be judged.
- Allow time for Q&A. Suppliers need to clarify requirements before responding.
- Set realistic timelines. Quality proposals take time to prepare.
- Use standardized templates. Ensures consistency and completeness.
- Share Q&A responses with all suppliers. Maintain fairness.
Common mistakes: (1) Unclear requirements leading to proposals that don't address your needs. (2) Too many requirements making it impossible for any supplier to meet all. (3) Unrealistic timelines causing suppliers to rush or decline. (4) Not sharing Q&A responses creating unfair advantage.
Pro tip: Use an RFI before an RFP if you're unsure about requirements or market options. RFI responses help you define better requirements and create a shortlist of qualified suppliers for the RFP.
RFQ - Request for Quote
An RFQ is used when you have well-defined requirements and want to compare pricing from multiple suppliers. It's simpler than an RFP and focuses on price comparison.
When to Use RFQ
Standard Items
You're buying standard products or services with clear specifications.
Price-Focused
Price is the primary or only evaluation criterion. Capabilities are similar across suppliers.
Repeat Purchases
You've bought this before and know exactly what you need.
Low Complexity
Simple purchase that doesn't require detailed proposals or complex evaluation.
RFQ Structure
An RFQ is typically simpler than an RFP:
- Item Specifications: Clear description of what you're buying (quantities, specifications, standards)
- Pricing Requirements: Unit prices, total prices, volume discounts, payment terms
- Delivery Requirements: Delivery dates, locations, shipping terms
- Terms and Conditions: Standard terms, warranties, return policies
- Response Format: How to submit pricing (spreadsheet, form, online)
- Timeline: Quote deadline and award date
Example: RFQ for office furniture: Item 1 - 50 ergonomic chairs, model XYZ or equivalent, $X per unit. Item 2 - 25 standing desks, 60x30 inches, $Y per unit. Delivery to address by date. Payment terms Net 30. Suppliers submit unit prices and total. Award goes to lowest total price.
RFQ Best Practices
- Be very specific about specifications. Ambiguity leads to incomparable quotes.
- Use standard formats (e.g., line items, quantities, units) to make comparison easy.
- Include all costs (product, shipping, taxes, fees) in the comparison.
- Set clear delivery requirements. Late delivery can negate price advantages.
- Consider total cost of ownership, not just purchase price (maintenance, support, etc.).
- Verify supplier qualifications before awarding. Low price doesn't help if supplier can't deliver.
Common mistake: Using RFQ for complex purchases that need RFP. If you need to evaluate capabilities, approach, or experience beyond price, use RFP. RFQ is for price comparison of well-defined items.
Pro tip: Use RFQ when you have a shortlist of qualified suppliers from a previous RFI or RFP. This streamlines the process by focusing only on price from suppliers you know can deliver.
RFS - Request for Solution
An RFS is used when you have a business problem but want suppliers to propose their own solutions. It's more open-ended than an RFP and encourages innovation.
When to Use RFS
Innovation Needed
You want suppliers to propose innovative approaches you haven't considered.
Problem Definition
You know the problem but not the solution. Suppliers define the approach.
Multiple Approaches
You want to see different ways to solve the problem before choosing an approach.
Partnership Focus
You're looking for a partner to co-create a solution, not just a vendor.
RFS Structure
An RFS focuses on the problem and desired outcomes:
- Problem Statement: Clear description of the business problem or opportunity
- Business Objectives: What you want to achieve (outcomes, not solutions)
- Constraints: Budget, timeline, technical constraints, compliance requirements
- Success Criteria: How you'll measure success
- Solution Requirements: What the solution should address (not how to do it)
- Evaluation Criteria: How solutions will be evaluated (innovation, feasibility, cost, etc.)
- Response Format: How suppliers should present their solutions
Example: RFS for improving customer onboarding: Problem - Current onboarding takes 2 weeks, customers frustrated. Objectives - Reduce to 3 days, improve satisfaction, maintain quality. Constraints - Budget $X, must integrate with CRM, comply with GDPR. Success criteria - Time reduction, satisfaction scores, retention rates. Suppliers propose their solutions (technology, process, people).
RFS Best Practices
- Focus on outcomes, not solutions. Let suppliers propose how to achieve the outcomes.
- Be clear about constraints. Suppliers need to know boundaries (budget, timeline, technical).
- Encourage innovation. Don't prescribe solutions that limit creativity.
- Evaluate feasibility. Innovation is good, but solutions must be implementable.
- Consider multiple evaluation criteria. Innovation, cost, risk, and feasibility all matter.
- Allow time for solution development. Quality solutions take time to design.
Common mistake: Being too prescriptive in an RFS. If you already know the solution approach, use RFP instead. RFS is for when you want suppliers to propose solutions.
Pro tip: RFS works well for digital transformation, process improvement, or innovation initiatives. It allows suppliers to bring their expertise and propose solutions you might not have considered.
Choosing the Right RFX Type
Choosing the right RFX type is critical for efficient sourcing. Use the wrong type and you'll waste time, get poor responses, or miss opportunities.
Decision Framework
Figure 2: Decision framework for choosing the right RFX type
Step 1: Do you know what you need?
No → Use RFI
Gather information to understand options and define requirements.
Yes → Go to Step 2
Step 2: Is it a well-defined, standard item?
Yes → Use RFQ
Price comparison for standard items with clear specifications.
No → Go to Step 3
Step 3: Do you know the solution approach?
Yes → Use RFP
You have requirements and want proposals on how suppliers meet them.
No → Use RFS
You have a problem and want suppliers to propose solutions.
Quick Reference Guide
Figure 3: RFX types comparison
| RFX Type | Purpose | When to Use | Focus |
|---|---|---|---|
| RFI | Gather information | Market research, supplier discovery, requirements definition | Information |
| RFP | Request proposals | Complex solutions, multiple criteria, strategic purchases | Proposals |
| RFQ | Request quotes | Standard items, price-focused, well-defined requirements | Price |
| RFS | Request solutions | Innovation needed, problem definition, multiple approaches | Solutions |
Common Scenarios
Scenario 1: New Software Category
You need project management software but don't know what's available.
Use: RFI to explore options → RFP to evaluate proposals from shortlisted suppliers
Scenario 2: Office Supplies
You need 500 reams of paper, standard specifications, price is the main factor.
Use: RFQ for price comparison
Scenario 3: Enterprise Software
You need CRM software with specific requirements, need to evaluate capabilities, implementation, and support.
Use: RFP with detailed requirements and evaluation criteria
Scenario 4: Process Improvement
You want to improve customer onboarding but don't know the best approach.
Use: RFS to get innovative solutions from suppliers
Best Practices
- Start with RFI if you're unsure. It's better to gather information first than waste time on the wrong RFX type.
- Use RFQ only for well-defined, standard items. If there's any complexity, use RFP.
- Use RFP for most strategic purchases. It provides structure and thorough evaluation.
- Use RFS when you want innovation. Don't prescribe solutions if you want creative approaches.
- Combine RFX types in sequence. RFI → RFP → RFQ is a common pattern for complex purchases.
- Don't overcomplicate simple purchases. Low-value, standard items may not need formal RFX.
Pro tip: When in doubt, use RFP. It's the most flexible and comprehensive. You can always simplify it for less complex purchases, but you can't easily add complexity to an RFQ or RFI.
Course Complete
You've mastered RFX processes. Ready to explore other Academy modules or start applying these concepts?