Choosing the Right Tool for the Situation
Not every sourcing situation requires the same process. Choosing the wrong RFx type wastes time, frustrates suppliers, and produces poor results.
RFI - Request for Information
The RFI is a discovery tool, not a buying tool. Use it when you need to understand the market before defining your sourcing strategy.
When to Use an RFI
- You are entering a new category with limited market knowledge
- You need to pre-qualify suppliers before a formal RFP/RFQ
- You want to validate your specifications against market capabilities
- You need to assess the sustainability/CSR credentials of a supplier panel
Key characteristic: Non-binding - information only.
RFQ - Request for Quotation
The RFQ is a price-focused tool for well-defined goods or services. Specifications are locked; you are comparing like for like.
When to Use an RFQ
- Specifications are clear and non-negotiable
- The category is commoditized with multiple qualified suppliers
- Price is the primary differentiator (quality is a prerequisite)
- You have a pricing model that enables direct comparison
Key characteristic: Generally binding on quoted price/terms.
💡 Best Practice: Keep your RFI short and focused. Suppliers invest time to respond; if your RFI is 50 pages, serious suppliers may decline to participate.