RFP / RFQ
Formal documents inviting suppliers to propose solutions (RFP) or quote prices (RFQ) for a defined need.
Definition
A Request for Proposal (RFP) asks suppliers to describe how they would solve a problem, with approach, quality and price all weighted in the assessment. A Request for Quotation (RFQ) seeks competitive prices for clearly specified goods or services. Both structure the sourcing process so bids stay comparable and the award can be justified.
Example
A retailer issues an RFQ to three logistics providers for a fixed pallet volume, then an RFP for a multi-year warehouse fit-out.
Why this is a business risk
A poorly scoped RFP or RFQ produces incomparable bids, making a fair award impossible to justify and exposing the process to challenge. Key risks are underspecifying requirements, which invites scope creep after award, and failing to document the evaluation, which leaves the organisation vulnerable in audits or disputes.
How to manage it
- Define requirements precisely before issuing the document so all suppliers respond to the same scope.
- Use weighted scoring criteria and document the evaluation scores to support the award decision.
- Store the issued document, all supplier responses and the award rationale together in one place.
- Ensure the resulting contract reflects the winning proposal to avoid misalignment at execution.
Frequently asked questions
Common questions about this term.