RFI/RFP/RFQ
RFI
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Short for “Request For Information,” the RFI is really a preliminary document used by companies that don’t understand the marketplace they’re about to enter. In the case of a company searching for a customer relationship management (CRM) solution, for instance, it would use an RFI if it had no prior experience with CRM and wanted to gain an understanding on the range of options in the CRM space.
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Because the RFI is more of a fact-finding document, you’ll want to ask open-ended questions, ones that allow the vendor to talk about its full range of offerings. Typically, the RFI will state the broad business challenges you’re having, and then the vendor can tailor its response within the context of those challenges. Oftentimes, the vendor will explain its position in the marketplace (for instance, what industries it specializes in), how it licenses its product, and what other fees you can expect.
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RFP
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An RFP, “Request for Proposal,” is a document that asks vendors to propose solutions to a customer’s problems or business requirements. An RFP is usually what follows an RFI; in fact, it’s rare that a company will go from an RFI to an RFQ (for reasons that will become clear below). An RFP should contain much more specificity in terms of what a company’s needs are by outlining the business goals for the project and identifying specific requirements that are necessary for the work being requested. The key to this document is that there is sufficient detail to give vendors the context they need in order to propose a valid solution, yet it still needs to allow enough leeway for the vendors to apply creativity and best practices to fulfill those needs.
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RFQ
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Short for “request for quotation,” the RFQ is an even more detailed document that drills down to the exact specifications required by the company. In a situation where an RFQ is used for a B2B software project, the company knows enough about its current system and exactly how it wants to change or improve it in the future.
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Unlike the RFP, which allows for the flexibility of the vendor to suggest creative solutions to the problem, a company deploying an RFQ isn’t looking for creativity, but rather for the vendor to deploy the software using predetermined specifications. Typically, the RFQ contains a table that lists each requirement and then asks the vendor to assess its ability to meet that requirement. The vendor then will specify whether it can meet the requirement out of the box, whether it will require some configuration, whether it will require some custom code, or whether it will require leveraging a third-party vendor.
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Which method should I use?
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The answer to this question is your needs, the sector you are in or want to enter, etc. We will make a decision after the data is analyzed.