Pro Tips

15 Jul 2025

RFI vs. RFP vs. RFQ: What’s the Difference and When to Use Each?

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You’re trying to find the right vendors but are stuck between too much information and too many choices. Between sorting through vague proposals, inconsistent formats, and unclear requirements, the whole process feels slower than it should be.

Often, the problem isn’t the vendors. It’s the request process. When you’re unsure what to ask, how much detail to include, or when to involve pricing, decisions get delayed or derailed.

That’s where RFI, RFP, and RFQ come in. Used at the right stage, each of these tools helps you gather the right kind of information to move forward with clarity.

This blog breaks down what each request type means, when to use it, and how to avoid common pitfalls so you spend less time chasing answers and more time making confident choices.

Key Takeaways:

RFIs gather market insights, RFPs evaluate solution approaches, and RFQs compare pricing; each serves a distinct procurement stage with different objectives.
Following clear steps (from requirement definition to vendor evaluation) prevents delays and ensures fair comparisons across responses.
Unfocused RFIs, poorly scoped RFPs, and rigid RFQs lead to vague responses, administrative bottlenecks, and missed opportunities for negotiation.
Matching the right document (RFI/RFP/RFQ) to your procurement phase reduces redundant work.
Platforms like Kodo streamline sourcing by connecting requests, approvals, and payments in one system, cutting cycle times and errors.

What is RFI (Request for Information )?

You’re trying to find the right vendors but are stuck between too much information and too many choices. Between sorting through vague proposals, inconsistent formats, and unclear requirements, the whole process feels slower than it should be. Often, the problem isn’t the vendors. It’s the request process. When you’re unsure what to ask, how much detail to include, or when to involve pricing, decisions get delayed or derailed. That’s where RFI, RFP, and RFQ come in. Used at the right stage, each of these tools helps you gather the right kind of information to move forward with clarity. This blog breaks down what each request type means, when to use it, and how to avoid common pitfalls so you spend less time chasing answers and more time making confident choices. Key Takeaways: RFIs gather market insights, RFPs evaluate solution approaches, and RFQs compare pricing; each serves a distinct procurement stage with different objectives. Following clear steps (from requirement definition to vendor evaluation) prevents delays and ensures fair comparisons across responses. Unfocused RFIs, poorly scoped RFPs, and rigid RFQs lead to vague responses, administrative bottlenecks, and missed opportunities for negotiation. Matching the right document (RFI/RFP/RFQ) to your procurement phase reduces redundant work. Platforms like Kodo streamline sourcing by connecting requests, approvals, and payments in one system, cutting cycle times and errors. What is RFI (Request for Information )? An RFI collects details about suppliers’ capabilities when you’re exploring your options. It acts as a preliminary, market-discovery tool, not a contract or bid invitation. It is a structured survey to understand who can offer what and how they align with your project needs. Organisations use RFIs to: Map available solutions and identify promising vendors Build a shortlist of qualified suppliers before drafting a detailed RFP. Define project requirements based on vendor expertise and market trends. In industries like construction, submitters use RFIs to resolve unclear project documentation before work proceeds. If you're considering issuing an RFI, here's how a typical process unfolds from start to finish. RFI Process: Step by Step To get meaningful insights from an RFI, you need a clear process. Here’s what that looks like, step by step: Define Scope: Clarify what you want to learn. Set objectives for the RFI, define the scope of inquiry, and specify response formats. Draft Questions: Ask open-ended questions about the vendor’s experience, capabilities, technology, and approach. Select Vendors: Choose a mix of vendors, either a broad pool or pre-vetted suppliers, to ensure a balanced view of the market. Issue the RFI: Include background context, submission deadlines, formatting guidelines, and any preliminary evaluation criteria. Collect Responses: Gather responses consistently and on time. Uniform formats help make comparisons easier. Review Responses: Evaluate vendor fit, capabilities, and innovation. Highlight standout ideas or unexpected approaches. Shortlist Vendors: Select the most aligned responses to move forward into an RFP or RFQ stage. Document Insights: Capture learnings, note common vendor questions, and highlight future risks or requirements. RFIs lay the groundwork for smarter sourcing. They help you identify what’s feasible, refine your internal requirements, and move into the next stage with a sharper, more focused vendor list. Next, we’ll cover RFPs and how you can use them for evaluating detailed proposals when you're closer to making a decision. What is RFP (Request for Proposal)? An RFP is used when you know what you need but want vendors to propose how they’ll deliver it. It outlines your project scope, deadlines, submission guidelines, and evaluation criteria, giving vendors the structure to submit thoughtful, customised solutions. Unlike an RFQ, which focuses narrowly on price, an RFP encourages creativity and competitive value. Organisations use RFPs to: Invite strategic proposals for complex projects Ensure transparency in vendor selection (especially in government or enterprise) Compare solutions not just by cost, but by quality, approach, and fit RFP Process: Step by Step Once you’ve decided an RFP is the right tool, here’s how the process typically unfolds, from internal planning to final contract award: Prepare Internally: Gather your team. Agree on project scope, budget, timeline, evaluation metrics, and who will draft the RFP. Perform Spend Research: Analyse past spending to find opportunities where issuing an RFP may yield better value and innovation. Develop RFP Document: Write a cover message, company background, project details, deliverables, vendor criteria, budget guidelines, and response format. Release to Market: Distribute to selected vendors or publish publicly. Set clear deadlines for submissions and question periods. Manage Inquiries: Collect vendor questions, share answers openly, and update RFP documents if needed. Receive and Score Proposals: Review submissions using a predefined scoring system. Include quantitative criteria (e.g., pricing) and qualitative factors (e.g., technical approach). Engage Finalists: Invite shortlisted vendors to present, answer questions, or run demos. You may negotiate terms and request final offers. Choose a Provider and Award a Contract: Select the top proposal, verify references, finalise terms, and sign the contract. Review Results: Conduct a post‑process review. Capture lessons about timelines, scoring, documentation quality, and vendor feedback for future RFPs. RFPs offer a disciplined path to finding the right vendors for complex needs. They bring clarity, open comparison, and accountability. A well-orchestrated cycle, from internal prep through closing the contract, makes sourcing efficient and vendor selection transparent. With RFPs explained, the next step is understanding RFQs used when pricing is the focus. What is an RFQ (Request for Quotation)? An RFQ invites vendors to offer fixed pricing and terms for products or services with clearly defined specifications. Buyers issue RFQs when they know exactly what they need, focusing primarily on cost comparison rather than creative proposals. Organisations typically use RFQs for: Standardised, repeat purchases Comparing prices across pre-qualified vendors Quickly awarding contracts based on objective criteria RFQ Process: Step by Step An RFQ begins with defining exact requirements and ends with contract award. The goal is a clear, side-by-side comparison of vendor quotes for cost, quality, and delivery. Gather Requirements: Work with stakeholders to list product/service specs, quantities, delivery timelines, quality standards, and contract terms. Draft RFQ Document: Include buyer info, technical details, submission deadline, evaluation criteria, terms of sale, and price templates (like line-item tables). Identify Suppliers: Choose a balanced mix of vendors through an open call or an invited shortlist. Limit participants to 3–8 to maintain competition while managing the review workload. Issue RFQ: To ensure fairness, send the RFQ to selected suppliers, share guidelines for questions, and lodge any clarifications publicly. Collect and Review Quotes: Accept responses until the deadline, then open them together. Compare bids using standard criteria; don’t fixate on price alone; consider delivery, service terms, and vendor performance. Negotiate and Award: Clarify pricing or delivery through discussions. Award the contract to the most suitable vendor and issue a purchase order. Communicate Results: Notify all bidders of the outcome. Offer feedback to unsuccessful vendors to maintain positive relations. Track Performance: After delivery, assess quality and timeliness. Document vendor performance to use in future sourcing decisions. RFQs are best when speed, cost, and accuracy are the priority. With clear specifications and structured comparison, they help you get the best value for standardised purchases. But when should you use an RFI, an RFP, or an RFQ? Understanding how they differ and when to use each can sharpen your sourcing process and save significant time and cost. RFI vs. RFP vs. RFQ RFI explores, RFP solicits solutions, and RFQ prices solutions. Matching the right tool to your stage, exploration, proposal, or purchase, keeps procurement smooth and results clear. Feature RFI (Request for Information) RFP (Request for Proposal) RFQ (Request for Quotation) Purpose Collect vendor capabilities and market insights Solicit formal proposals detailing solution design, timelines, pricing, and terms Gather exact pricing and terms for clearly defined goods/services Typical Use Early planning stage when requirements remain undefined When a project has scope, objectives, and evaluation criteria defined When the scope and specs are fixed and the goal is cost comparison Question Style Open-ended: vendor background, capabilities, market trends Mixed: technical approaches, staffing, timeline, cost breakdown Structured: item-by-item pricing, delivery, payment terms Vendor Response Level High-level summaries; helps with shortlisting Detailed proposals; vendors often include creative or tailored approaches Precise cost quotes; minimal narrative Evaluation Focus Market fit, vendor expertise, basic capabilities Solution quality, vendor credibility, total value Price, delivery timing, compliance to specs Outcome Shortlist vendors, clarify requirements, and design the next step Select vendor or shortlist for demos, negotiations, BAFO Pick vendor, issue purchase order, start delivery Common Pitfalls Asking overly specific questions too soon; skipping when RFI would clarify Overloading with unnecessary detail; excluding smaller vendors due to complexity Too rigid; no room for minor variations or negotiations Once the differences are clear, the next step is knowing when each approach works best. Here’s a breakdown based on common sourcing scenarios. Also Read: Best Procurement Tools and Resources in 2025 When Should You Use RFI, RFP, or RFQ? Use an RFI for market discovery, an RFP for solution exploration, and an RFQ for cost comparison. Each has a specific role depending on where you are in the procurement cycle. When to Use an RFI An RFI helps you ask open-ended questions about vendor capabilities, services, and emerging solutions. Use an RFI when: You’re early in the buying cycle and exploring available solutions or potential vendors. You’re unsure who can deliver what you need and want to surface qualified vendors. You need high-level input without requesting pricing or formal commitments. Send an RFI to gather insights, shape your requirements, and create a focused vendor shortlist before issuing a more detailed request. When to Use an RFP An RFP collects structured bids with technical approaches, timelines, pricing, and qualifications. Use an RFP when: You know your goals but want vendors to propose how they’ll meet them. You need to compare different solutions, approaches, or value-added services. You require a structured evaluation based on both technical and commercial criteria. Use an RFP when quality, creativity, and vendor fit are just as important as cost. When to Use an RFQ An RFQ requests itemised quotes for clearly defined goods or services. Use an RFQ when: You’ve locked specs, quantities, and delivery terms and want price quotes. You’re choosing a vendor primarily based on cost and standardised terms. You want a legally binding quote with contract-ready details. RFQs work best when speed, clarity, and price comparison are the priority. Tip: Match the format to your stage, start with an RFI to explore, move to an RFP to evaluate, and close with an RFQ for pricing. Then, refine the process: structure your questions clearly, schedule Q&A sessions, and track vendor performance across stages. These small shifts can accelerate your procurement workflow. Also read: Simplifying Vendor Payments with a Smarter Accounts Payable Process What are the Challenges with RFI, RFP, and RFQ? Even when you pick the right format, things can go wrong. From vague responses to poor comparisons and time-consuming reviews, each document type has its own hurdles. Here's what typically slows teams down and how to fix it. RFI Challenges RFIs are meant to gather early insights, but they can fail if the questions are unfocused or the response process is unstructured. Vague responses: Unclear questions lead to generic vendor replies. Include simple, structured templates with short-answer sections to guide vendors. Too much volume: Sending RFIs too widely overwhelms your team. Use an initial pre-screening step to narrow candidates before full RFI distribution. Inconsistent formats: Makes responses hard to compare. Standardise response formats and apply a scoring system. Lack of RFI skills: Teams struggle to analyse responses. Provide targeted training or bring on experienced help. Slow reviews: RFIs often stall due to unclear timelines. Set clear phases, assign responsibilities, and use project software to track progress. RFP Challenges RFPs involve more complexity and require sharp internal alignment. Without that, they often stall or fail to yield useful proposals. Administrative load: Reviewing multiple submissions drains time. Use procurement tools to automate tracking. Delays: Without tight timelines, RFPs can stretch indefinitely. Define realistic schedules and include buffer time for Q&A and reviews. Unclear scope: Vague RFPs confuse vendors. Hold internal workshops and research the market beforehand. Too many reviewers: Too many stakeholders slow down decisions. Appoint a single coordinator and clarify roles early. Disjointed communication: Endless back-and-forth wastes time. Schedule a formal Q&A phase, publish shared answers, and limit back-and-forth exchanges. Cost-only focus: Choosing the lowest bid without context is risky. Score on quality, experience, and support, too. Scope creep post-award: Leads to hidden costs. Build clear change-management guidelines to handle scope adjustments. RFQ Challenges RFQs are fast-paced and cost-driven, but if not scoped tightly, you risk bad data or poor decisions. Specs too rigid: Can block value-add options. Include options for volume tiers or add-ons in templates to allow vendor suggestions. Manual follow-ups: Quote collection stalls without tracking. Use tools that centralise vendor follow-ups and track submissions. No post-award review: You won't know if the vendor delivered. After delivery, evaluate accuracy, timeliness, and vendor communication. Unclear requirements: Result in inaccurate pricing. Vet specs internally and share clarifications publicly before issuing RFQs. Fixing these small, overlooked issues, such as adding templates, structuring Q&A, centralising documents, tracking performance, and scoring responses, leads to better vendor decisions and fewer procurement headaches. Streamline Invoicing and Vendor Payments with Kodo Once you've selected the right vendor through an RFI, RFP, or RFQ process, the real work begins: raising purchase requests, issuing POs, processing invoices, making payments, and staying compliant. That's where Kodo steps in. Kodo simplifies your entire Procure-to-Pay cycle, from intake to invoice to payment, so your finance and procurement teams can move faster without losing control. With built-in approval workflows, real-time spend visibility, and deep ERP integrations, Kodo removes manual effort from day-to-day procurement. Here’s what you can manage on Kodo: Purchase Requests & Approvals: Route requests through customizable workflows with full audit trails. Purchase Orders: Generate and track POs with real-time visibility. Invoices (AP): Automate invoice capture, matching, and approval without manual entry. Vendor Payments: Pay vendors on time using flexible and secure payout options. Corporate Cards & Reimbursements: Enforce spend limits, capture receipts, and streamline employee claims. Whether you're scaling a startup or managing enterprise-level operations, Kodo gives your team the structure to stay compliant and the speed to stay competitive. Wrapping Up Each document, RFI, RFP, and RFQ, serves a different purpose and fits a specific stage of your vendor selection process. Choosing the correct format helps you ask the right questions, compare vendors fairly, and avoid back-and-forth confusion. When you match your request to your needs, you save time and make decisions with more clarity. Once you've selected the right vendor, the next step is seamless execution. Kodo streamlines the procure-to-pay process with structured workflows for purchase requests, POs, invoices, and vendor payments. With built-in approvals, ERP integrations, and real-time visibility, Kodo helps finance and procurement teams stay compliant and move faster without manual effort. Ready to simplify procurement? Book a demo with Kodo today. FAQs Can an RFI, RFQ, or RFP be skipped in urgent procurement needs? Yes, in time-sensitive or low-value purchases, procurement teams might bypass formal steps and go straight to direct sourcing. However, this often requires internal justification or approval, especially in regulated industries. Why do some vendors prefer RFQs over RFPs? RFQs are simpler and focus strictly on pricing and delivery terms. Vendors often prefer them because they involve less documentation, faster turnaround, and lower pre-sales effort compared to the detailed proposals required in RFPs. Can one procurement project use all three, RFI, RFP, and RFQ? Yes. Large or complex purchases may start with an RFI to explore the market, move to an RFP to evaluate qualified solutions, and end with an RFQ to compare final pricing among shortlisted vendors. How should teams decide which document to use first: RFI, RFP, or RFQ? It depends on clarity. If you're unsure what solutions exist, start with an RFI. If you're clear on needs but open to various approaches, use an RFP. If you know exactly what you want and only need price quotes, issue an RFQ. Are RFIs always public or can they be limited to select vendors? RFIs can be sent to a closed group of suppliers if the organisation wants to maintain control or confidentiality. Public RFIs are more common in government or public-sector projects where transparency is required.

An RFI collects details about suppliers’ capabilities when you’re exploring your options. It acts as a preliminary, market-discovery tool, not a contract or bid invitation. It is a structured survey to understand who can offer what and how they align with your project needs.

Organisations use RFIs to:

Map available solutions and identify promising vendors
Build a shortlist of qualified suppliers before drafting a detailed RFP.
Define project requirements based on vendor expertise and market trends.

In industries like construction, submitters use RFIs to resolve unclear project documentation before work proceeds.

If you're considering issuing an RFI, here's how a typical process unfolds from start to finish.

RFI Process: Step by Step

To get meaningful insights from an RFI, you need a clear process. Here’s what that looks like, step by step:

Define Scope: Clarify what you want to learn. Set objectives for the RFI, define the scope of inquiry, and specify response formats.
Draft Questions: Ask open-ended questions about the vendor’s experience, capabilities, technology, and approach.
Select Vendors: Choose a mix of vendors, either a broad pool or pre-vetted suppliers, to ensure a balanced view of the market.
Issue the RFI: Include background context, submission deadlines, formatting guidelines, and any preliminary evaluation criteria.
Collect Responses: Gather responses consistently and on time. Uniform formats help make comparisons easier.
Review Responses: Evaluate vendor fit, capabilities, and innovation. Highlight standout ideas or unexpected approaches.
Shortlist Vendors: Select the most aligned responses to move forward into an RFP or RFQ stage.
Document Insights: Capture learnings, note common vendor questions, and highlight future risks or requirements.

RFIs lay the groundwork for smarter sourcing. They help you identify what’s feasible, refine your internal requirements, and move into the next stage with a sharper, more focused vendor list.

Next, we’ll cover RFPs and how you can use them for evaluating detailed proposals when you're closer to making a decision.

What is RFP (Request for Proposal)?

An RFP is used when you know what you need but want vendors to propose how they’ll deliver it. It outlines your project scope, deadlines, submission guidelines, and evaluation criteria, giving vendors the structure to submit thoughtful, customised solutions. Unlike an RFQ, which focuses narrowly on price, an RFP encourages creativity and competitive value.

Organisations use RFPs to:

Invite strategic proposals for complex projects
Ensure transparency in vendor selection (especially in government or enterprise)
Compare solutions not just by cost, but by quality, approach, and fit

RFP Process: Step by Step

Once you’ve decided an RFP is the right tool, here’s how the process typically unfolds, from internal planning to final contract award:

Prepare Internally: Gather your team. Agree on project scope, budget, timeline, evaluation metrics, and who will draft the RFP.
Perform Spend Research: Analyse past spending to find opportunities where issuing an RFP may yield better value and innovation.
Develop RFP Document: Write a cover message, company background, project details, deliverables, vendor criteria, budget guidelines, and response format.
Release to Market: Distribute to selected vendors or publish publicly. Set clear deadlines for submissions and question periods.
Manage Inquiries: Collect vendor questions, share answers openly, and update RFP documents if needed.
Receive and Score Proposals: Review submissions using a predefined scoring system. Include quantitative criteria (e.g., pricing) and qualitative factors (e.g., technical approach).
Engage Finalists: Invite shortlisted vendors to present, answer questions, or run demos. You may negotiate terms and request final offers.
Choose a Provider and Award a Contract: Select the top proposal, verify references, finalise terms, and sign the contract.
Review Results: Conduct a post‑process review. Capture lessons about timelines, scoring, documentation quality, and vendor feedback for future RFPs.

RFPs offer a disciplined path to finding the right vendors for complex needs. They bring clarity, open comparison, and accountability. A well-orchestrated cycle, from internal prep through closing the contract, makes sourcing efficient and vendor selection transparent.

With RFPs explained, the next step is understanding RFQs used when pricing is the focus.

What is an RFQ (Request for Quotation)?

An RFQ invites vendors to offer fixed pricing and terms for products or services with clearly defined specifications. Buyers issue RFQs when they know exactly what they need, focusing primarily on cost comparison rather than creative proposals.

Organisations typically use RFQs for:

Standardised, repeat purchases
Comparing prices across pre-qualified vendors
Quickly awarding contracts based on objective criteria

RFQ Process: Step by Step

An RFQ begins with defining exact requirements and ends with contract award. The goal is a clear, side-by-side comparison of vendor quotes for cost, quality, and delivery.

Gather Requirements: Work with stakeholders to list product/service specs, quantities, delivery timelines, quality standards, and contract terms.
Draft RFQ Document: Include buyer info, technical details, submission deadline, evaluation criteria, terms of sale, and price templates (like line-item tables).
Identify Suppliers: Choose a balanced mix of vendors through an open call or an invited shortlist. Limit participants to 3–8 to maintain competition while managing the review workload.
Issue RFQ: To ensure fairness, send the RFQ to selected suppliers, share guidelines for questions, and lodge any clarifications publicly.
Collect and Review Quotes: Accept responses until the deadline, then open them together. Compare bids using standard criteria; don’t fixate on price alone; consider delivery, service terms, and vendor performance.
Negotiate and Award: Clarify pricing or delivery through discussions. Award the contract to the most suitable vendor and issue a purchase order.
Communicate Results: Notify all bidders of the outcome. Offer feedback to unsuccessful vendors to maintain positive relations.
Track Performance: After delivery, assess quality and timeliness. Document vendor performance to use in future sourcing decisions.

RFQs are best when speed, cost, and accuracy are the priority. With clear specifications and structured comparison, they help you get the best value for standardised purchases.

But when should you use an RFI, an RFP, or an RFQ? Understanding how they differ and when to use each can sharpen your sourcing process and save significant time and cost.

RFI vs. RFP vs. RFQ

RFI explores, RFP solicits solutions, and RFQ prices solutions. Matching the right tool to your stage, exploration, proposal, or purchase, keeps procurement smooth and results clear.

Feature	RFI (Request for Information)	RFP (Request for Proposal)	RFQ (Request for Quotation)
Purpose	Collect vendor capabilities and market insights	Solicit formal proposals detailing solution design, timelines, pricing, and terms	Gather exact pricing and terms for clearly defined goods/services
Typical Use	Early planning stage when requirements remain undefined	When a project has scope, objectives, and evaluation criteria defined	When the scope and specs are fixed and the goal is cost comparison
Question Style	Open-ended: vendor background, capabilities, market trends	Mixed: technical approaches, staffing, timeline, cost breakdown	Structured: item-by-item pricing, delivery, payment terms
Vendor Response Level	High-level summaries; helps with shortlisting	Detailed proposals; vendors often include creative or tailored approaches	Precise cost quotes; minimal narrative
Evaluation Focus	Market fit, vendor expertise, basic capabilities	Solution quality, vendor credibility, total value	Price, delivery timing, compliance to specs
Outcome	Shortlist vendors, clarify requirements, and design the next step	Select vendor or shortlist for demos, negotiations, BAFO	Pick vendor, issue purchase order, start delivery
Common Pitfalls	Asking overly specific questions too soon; skipping when RFI would clarify	Overloading with unnecessary detail; excluding smaller vendors due to complexity	Too rigid; no room for minor variations or negotiations

Once the differences are clear, the next step is knowing when each approach works best. Here’s a breakdown based on common sourcing scenarios.

Also Read: Best Procurement Tools and Resources in 2025

When Should You Use RFI, RFP, or RFQ?

Use an RFI for market discovery, an RFP for solution exploration, and an RFQ for cost comparison. Each has a specific role depending on where you are in the procurement cycle.

When to Use an RFI

An RFI helps you ask open-ended questions about vendor capabilities, services, and emerging solutions. Use an RFI when:

You’re early in the buying cycle and exploring available solutions or potential vendors.
You’re unsure who can deliver what you need and want to surface qualified vendors.
You need high-level input without requesting pricing or formal commitments.

Send an RFI to gather insights, shape your requirements, and create a focused vendor shortlist before issuing a more detailed request.

When to Use an RFP

An RFP collects structured bids with technical approaches, timelines, pricing, and qualifications. Use an RFP when:

You know your goals but want vendors to propose how they’ll meet them.
You need to compare different solutions, approaches, or value-added services.
You require a structured evaluation based on both technical and commercial criteria.

Use an RFP when quality, creativity, and vendor fit are just as important as cost.

When to Use an RFQ

An RFQ requests itemised quotes for clearly defined goods or services. Use an RFQ when:

You’ve locked specs, quantities, and delivery terms and want price quotes.
You’re choosing a vendor primarily based on cost and standardised terms.
You want a legally binding quote with contract-ready details.

RFQs work best when speed, clarity, and price comparison are the priority.

Tip: Match the format to your stage, start with an RFI to explore, move to an RFP to evaluate, and close with an RFQ for pricing. Then, refine the process: structure your questions clearly, schedule Q&A sessions, and track vendor performance across stages. These small shifts can accelerate your procurement workflow.

Also read: Simplifying Vendor Payments with a Smarter Accounts Payable Process

What are the Challenges with RFI, RFP, and RFQ?

Even when you pick the right format, things can go wrong. From vague responses to poor comparisons and time-consuming reviews, each document type has its own hurdles. Here's what typically slows teams down and how to fix it.

RFI Challenges

RFIs are meant to gather early insights, but they can fail if the questions are unfocused or the response process is unstructured.

Vague responses: Unclear questions lead to generic vendor replies. Include simple, structured templates with short-answer sections to guide vendors.
Too much volume: Sending RFIs too widely overwhelms your team. Use an initial pre-screening step to narrow candidates before full RFI distribution.
Inconsistent formats: Makes responses hard to compare. Standardise response formats and apply a scoring system.
Lack of RFI skills: Teams struggle to analyse responses. Provide targeted training or bring on experienced help.
Slow reviews: RFIs often stall due to unclear timelines. Set clear phases, assign responsibilities, and use project software to track progress.

RFP Challenges

RFPs involve more complexity and require sharp internal alignment. Without that, they often stall or fail to yield useful proposals.

Administrative load: Reviewing multiple submissions drains time. Use procurement tools to automate tracking.
Delays: Without tight timelines, RFPs can stretch indefinitely. Define realistic schedules and include buffer time for Q&A and reviews.
Unclear scope: Vague RFPs confuse vendors. Hold internal workshops and research the market beforehand.
Too many reviewers: Too many stakeholders slow down decisions. Appoint a single coordinator and clarify roles early.
Disjointed communication: Endless back-and-forth wastes time. Schedule a formal Q&A phase, publish shared answers, and limit back-and-forth exchanges.
Cost-only focus: Choosing the lowest bid without context is risky. Score on quality, experience, and support, too.
Scope creep post-award: Leads to hidden costs. Build clear change-management guidelines to handle scope adjustments.

RFQ Challenges

RFQs are fast-paced and cost-driven, but if not scoped tightly, you risk bad data or poor decisions.

Specs too rigid: Can block value-add options. Include options for volume tiers or add-ons in templates to allow vendor suggestions.
Manual follow-ups: Quote collection stalls without tracking. Use tools that centralise vendor follow-ups and track submissions.
No post-award review: You won't know if the vendor delivered. After delivery, evaluate accuracy, timeliness, and vendor communication.
Unclear requirements: Result in inaccurate pricing. Vet specs internally and share clarifications publicly before issuing RFQs.

Fixing these small, overlooked issues, such as adding templates, structuring Q&A, centralising documents, tracking performance, and scoring responses, leads to better vendor decisions and fewer procurement headaches.

Streamline Invoicing and Vendor Payments with Kodo

Once you've selected the right vendor through an RFI, RFP, or RFQ process, the real work begins: raising purchase requests, issuing POs, processing invoices, making payments, and staying compliant. That's where Kodo steps in.

Kodo simplifies your entire Procure-to-Pay cycle, from intake to invoice to payment, so your finance and procurement teams can move faster without losing control. With built-in approval workflows, real-time spend visibility, and deep ERP integrations, Kodo removes manual effort from day-to-day procurement.

Here’s what you can manage on Kodo:

Purchase Requests & Approvals: Route requests through customizable workflows with full audit trails.
Purchase Orders: Generate and track POs with real-time visibility.
Invoices (AP): Automate invoice capture, matching, and approval without manual entry.
Vendor Payments: Pay vendors on time using flexible and secure payout options.
Corporate Cards & Reimbursements: Enforce spend limits, capture receipts, and streamline employee claims.

Whether you're scaling a startup or managing enterprise-level operations, Kodo gives your team the structure to stay compliant and the speed to stay competitive.

Wrapping Up

Each document, RFI, RFP, and RFQ, serves a different purpose and fits a specific stage of your vendor selection process. Choosing the correct format helps you ask the right questions, compare vendors fairly, and avoid back-and-forth confusion. When you match your request to your needs, you save time and make decisions with more clarity.

Once you've selected the right vendor, the next step is seamless execution. Kodo streamlines the procure-to-pay process with structured workflows for purchase requests, POs, invoices, and vendor payments. With built-in approvals, ERP integrations, and real-time visibility, Kodo helps finance and procurement teams stay compliant and move faster without manual effort.

Ready to simplify procurement? Book a demo with Kodo today.

FAQs

Can an RFI, RFQ, or RFP be skipped in urgent procurement needs?
Yes, in time-sensitive or low-value purchases, procurement teams might bypass formal steps and go straight to direct sourcing. However, this often requires internal justification or approval, especially in regulated industries.
Why do some vendors prefer RFQs over RFPs?
RFQs are simpler and focus strictly on pricing and delivery terms. Vendors often prefer them because they involve less documentation, faster turnaround, and lower pre-sales effort compared to the detailed proposals required in RFPs.
Can one procurement project use all three, RFI, RFP, and RFQ?
Yes. Large or complex purchases may start with an RFI to explore the market, move to an RFP to evaluate qualified solutions, and end with an RFQ to compare final pricing among shortlisted vendors.
How should teams decide which document to use first: RFI, RFP, or RFQ?
It depends on clarity. If you're unsure what solutions exist, start with an RFI. If you're clear on needs but open to various approaches, use an RFP. If you know exactly what you want and only need price quotes, issue an RFQ.
Are RFIs always public or can they be limited to select vendors?
RFIs can be sent to a closed group of suppliers if the organisation wants to maintain control or confidentiality. Public RFIs are more common in government or public-sector projects where transparency is required.