“Request For” documents are some of the most common documents used in the business world. They’re used as a formal request from one company to another, with the nature of the request reflected in the document’s name.
Two examples of these documents are “Request For Proposal (RFP)” and “Request For Quotation (RFQ)”. Let’s take a quick look of these two documents to understand what they are, their processes and how to write them.
The “Request for Proposal” document is a document that you send out to vendors for proposals for a solution that you require. It’s often used when you don’t know what kind of service or products that you need.
In a gist, it’s a communication tool for you to specify your problems and your needs while inviting vendors to suggest solutions.
Writing an RFP can be a daunting task. Here are some things to to keep in mind while you plan out and write your RFP:
RFP can differ greatly from one another in terms of contents. Every organization has their own way of writing it. However, there are elements that stay consistent throughout:
At the point that you are writing your RFP, you should have a clear understanding of the issue that you are trying to solve. You should be able to provide, in detail, your requirements and specifications that you need from the vendor. By being specific, it helps you to increase the chances of receiving a proposal that matches your needs and finding vendors that are worthy of your time to engage.
The “Request For Quotation” is a document you send out to vendors to determine the pricing and payment process for a specific service or product. You may think of an RFQ as an opposite to the RFP: it’s used when you know what you need and is looking for the best solution from a financial perspective.
Wikipedia defines it as: “a business process in which a company or public entity requests a quote from a supplier for the purchase of specific products or services.”
Request For Quotation typically involves:
Here are some things to keep in mind when planning and writing your Request For Quotation document:
Request For Quotation documents tend to be a list of requirements that you want to present to your vendors. In that sense, the document tends to be short and concise. Here’s what you’ll want to include:
RFQs can differ from industry to industry. However, the points above are consistent throughout for each. Again, you’ll want to be as specific as you can when preparing your RFQ in order to maximize the chance of receiving quality service from your vendors.
RFQs and RFPs are tools for you to receive an apple to apple and not apple to oranges comparison on price. With clearly defined requirements, vendor can provide accurate quotes. Without them, vendors will provide quotations based on their own understanding and requirements.