A Request for Information (RFI) is a document issued by a company to potential vendors to gather necessary information about their skills, experience, and offerings. It is used in the early stages of procurement when the buyer requires insights about their options in the market.

Purpose

Information gathering

The primary purpose of an RFI is to collect essential details about potential suppliers to establish their suitability for a business need before engaging in further discussion. Details requested in an RFI include the vendor’s business information, industry expertise, capacity to meet volume or service demands and environmental standards, experience with similar projects, and technological capabilities.

Market research

RFI responses enable buyers to better understand the market by acquiring a broad view of supplier availability, industry trends, emerging technologies, and possible solutions. Buyers can assess the competitive landscape, determine what solutions or services are being commonly offered, and compare various offerings and pricing models to establish industry benchmarks.

Pre-qualification

An RFI is typically the first step in the procurement process when the buyer is in the exploratory phase and the requirements are unclear. Sending out RFIs in this stage serves as a pre-qualification method to shortlist capable suppliers before proceeding to more detailed steps, such as issuing IFBs, RFPs and RFQs.  

When to use an RFI

It’s best to use an RFI when you wish to explore new opportunities and gain a better understanding of your options within the market. An RFI is particularly valuable when there is room for flexibility and innovation in your project or procurement requirements, and you need to gather information to help define your key specifications.

Features of an RFI

• Introduction: A brief overview highlighting the purpose of the RFI, the buyer’s organization, and the goals of the procurement process.

• Instructions: Clear guidelines on how to complete and submit the RFI, including deadline, preferred format, and contact details for any queries.

• Questionnaire: A series of targeted questions designed to gather information on the vendor’s capabilities, experience, offerings, and other relevant details.

• Request for references: A section asking vendors to provide references or case studies from past clients to corroborate their experience and assess their performance on similar projects.

• Confidentiality clause: A clause ensuring that all information (technical, trade secrets, etc.) provided by both parties during the RFI process and business cooperation shall not be disclosed to a third party.

• Evaluation criteria: A brief overview of the key areas of focus for vendor evaluation, such as quality, experience, and pricing, and a scoring matrix to rank or shortlist them.

• Submission confirmation: Details how vendors will receive confirmation that their RFI responses have been received successfully, including reference numbers for further communication.

• Next steps: An outlook of the procurement timeline after the RFI, including when vendors can expect feedback, potential invitations to participate in subsequent stages, such as RFPs and RFQs, and any additional rounds of questioning.

Benefits of an RFI

• Informed decision-making: Helps buyers clarify project requirements and understand supplier capabilities, informing subsequent procurement processes and decision-making.

• Supplier engagement: Initiates dialog between buyers and vendors and encourages an open exchange of information, fostering a collaborative environment and a foundation for building relationships between both parties.

• Improved market understanding: Provides a broad overview of available products, services, and expertise, keeping buyers informed of market trends and ensuring they choose the most up-to-date and competitive solutions.

• Cost efficiency: Allows buyers to compare different pricing models and benchmark costs, improving their understanding of average price points for similar services and leaving room for negotiations.

• Increased innovation potential: Motivates suppliers to showcase their expertise and stand out by proposing creative solutions and new technologies to address the buyer’s needs in innovative ways.

Best practices

• Specify what you aim to achieve from the project and share some background information about your organization to add important context.

• Mention each piece of information you require from potential vendors to get a comprehensive overview of their capabilities.

• Clearly communicate the required format and deadline for receiving RFI responses to maintain smooth and timely operations. Be respectful of the suppliers’ time by providing a reasonable deadline.

• Use precise and straightforward language to minimize misunderstandings.

• Allow some level of flexibility beyond specific questions to enable sellers to provide insights and propose solutions you might not have anticipated.

• Be transparent about how the responses will be assessed to encourage vendors to showcase exactly how they can help you achieve your project goals.

• Use a digital tool to help you monitor responses and ensure timely follow-ups.