For buyers, there are often many stepping stones to navigate before reaching an agreement with a supplier over a purchase. The process of gathering information on the goods, for example, is an important stage many companies in professional services industries begin with before starting any form of negotiation on price or volume.
Research alone won’t cut it. For businesses, there’s a procedure in place for soliciting information about a vendor’s products or goods. It’s known as an RFI (request for information), and for many companies, it signals the first step on the road to making a purchase.
Sending a request for information (RFI) is a key step in the procurement process. An RFI allows you to gather important details from suppliers before issuing a formal request for proposal (RFP) Drafting a well-written RFI sets the stage for more detailed responses later on. Follow these tips to create RFIs that get the information you need.
What is a Request for Information (RFI)?
A request for information (RFI) is a document you send to potential suppliers asking for details about their products, services capabilities and pricing. RFIs help narrow down options before sending out a request for proposal (RFP) to bid on a project.
RFIs are less formal than RFPs Their purpose is to collect general information to make an informed decision about which suppliers to consider further Companies often issue RFIs early in the procurement process before committing to a particular vendor,
Why Send a Request for Information?
There are several key reasons to use RFIs as part of your procurement strategy:
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Gain knowledge – RFIs allow you to learn more about the marketplace of potential suppliers. You can see what products, services, and options are available to meet your needs.
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Screen vendors – Reviewing RFI responses helps you determine which suppliers offer the best fit. You can narrow the field and only send RFPs to vendors that look promising.
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Clarify requirements – The RFI process helps you better define your own requirements. Interacting with suppliers gives you insights that allow you to refine your criteria.
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Prepare for RFPs – The information from RFIs lays the groundwork for developing targeted RFPs. You have the details needed to write RFPs that elicit useful bids.
Overall, RFIs give you the background information to make optimal decisions when selecting suppliers and awarding contracts. The time invested upfront pays dividends later in the procurement process.
How to Write an Effective RFI
Follow these steps when drafting RFIs to solicit useful responses from potential suppliers:
1. Offer Background Info and Overview of the Challenge
Start your RFI by introducing your company and providing context about the business need you aim to address. Give a high-level overview of the goals and objectives for the project.
Suppliers will be able to provide better information if they understand the background and purpose behind your request. Avoid getting too detailed though. Save any sensitive or confidential items for when you send specific RFPs.
2. Request Information in a Way That’s Easy to Compare
Structure RFI questions so that responses come back in a consistent format. This makes it easier to analyze and compare details from multiple vendors side-by-side.
Some tips for encouraging comparable responses:
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Ask for brief summaries and overviews rather than long narrative answers.
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Use bullet points, tables, or other formats to organize requested details.
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Give question examples such as desired features, capabilities, price points, etc.
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Leave room for additional information if needed.
Standardizing the response format upfront saves you time when evaluating RFIs later.
3. Provide a Clear Format for Vendor Responses
Specifically request that suppliers follow the structure and question format laid out in your RFI. For example:
Please respond to each question in the order listed using the numbered and lettered sections provided. Respond to each prompt clearly and concisely. Bulleted lists are encouraged.
You may even want to provide a response template for them to fill in. This keeps replies focused and organized for easier analysis.
4. Ask General vs. Specific Questions
Since RFIs come early in the procurement process, avoid overly narrow or detailed questions. Keep the focus on high-level capabilities, offerings, strengths, and pricing models.
Once you have evaluated RFIs and developed clearer criteria, you can drill down into specifics when sending RFPs to selected vendors.
5. Be Brief and Respect the Supplier’s Time
Keep your RFI as concise as possible while still getting the information you need. Respect the supplier’s time by asking only relevant questions.
Explain upfront approximately how long the RFI should take to complete. Let them know the deadline for responding. This demonstrates consideration for their time and encourages prompt replies.
RFI Template and Example Questions
Here is an RFI template you can adapt along with some sample questions for each section:
[Company Name] Request for Information (RFI)
Overview:
- High-level background on your company, the business need, and RFI goals
Instructions:
- Timeframe, submission details, confidentiality notes, and a point of contact
Company Information:
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Company name, address, website, and primary contact info
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Brief history and overview of capabilities
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Related experience and credentials
Product/Service Details:
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Brief description of proposed solution(s) or offerings
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List of main features and capabilities
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Standards, methodologies, or practices used
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Options for customization and scalability
Pricing Model:
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Overview of pricing structure and common fees
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Sample rates or price points for reference
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Discounts, bundled services, or other ways to optimize cost
Additional Information:
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Opportunity for supplier to add other relevant details
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Any questions they need clarified to provide a response
Signature/Contact:
- Confirmation of accuracy and sign-off
This RFI template covers the key details you need from potential suppliers early on. The simple structure makes responses easy to evaluate at a glance.
Tips for RFI Best Practices
Keep these best practices in mind to get the most out of your RFI process:
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Send RFIs to a wide range of prospective vendors to explore all options. Cast a wide net initially.
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Set a reasonable but firm deadline for responses to keep things moving forward. Follow up on any missing info.
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Notify suppliers that an RFI does not guarantee they will receive an RFP.
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Be clear on your objectives, requirements, and evaluation criteria upfront.
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Ensure confidentiality by having suppliers sign non-disclosure agreements as needed.
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Use RFI responses to refine your criteria before drafting detailed RFPs.
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Share feedback with suppliers after the process as a courtesy to improve responses in the future.
Benefits of Well-Written RFIs
Taking time to create clear, thorough RFIs delivers significant advantages throughout the procurement process:
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Informed decisions – Detailed RFI responses arm you with knowledge to pick the right suppliers.
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Tight alignment – Your needs are matched with suppliers that best fit.
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Smoother process – Good prep work upfront leads to more efficient RFP and contract phases.
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Better outcomes – Carefully chosen vendors help ensure project success in the end.
When should you use an RFI?
You should use an RFI whenever you need goods or services that you don’t already have access to. If you already have an agreement with a supplier for raw materials and you’re content with the terms of the deal, you wouldn’t need to issue an RFI.
But if you’re seeking something new for your business, an RFI kick-starts the formal procurement process that will give you the best chance of finding the best deal.
How to improve your RFI process
To improve the RFI process, aim for clarity and be concise with your words.
Optimize the document for brevity as this will allow suppliers to read and digest the information in less time, making it easier for them to justify issuing a timely response.
Don’t omit key information in the pursuit of brevity, though, as to receive the best proposals, you need to fill suppliers in on all the relevant facts.
Request for Information (RFI) Tutorial
How do I write a request for information?
Here are five steps you can use to write your own request for information: 1. Basic request details The top section of the RFI may include basic details about the request. This can tell the company the name of the person who sent it and the intended recipient. It may also include information such as: 2. Statement of purpose
What is a request for information?
A request for information, often abbreviated using the acronym RFI, offers a way to share your challenge with vendors and see what kinds of solutions they suggest. As a result, your business is better equipped to make an informed decision about how to proceed. In this blog post, we’ll offer a complete overview of a request for information.
How do you write a request for information (RFQ)?
Request for Quotation (RFQ). The key to writing a good Request for Information is to start with the information you want to obtain from suppliers. To do this, ensure all key stakeholders have agreed to the goals and objectives and the requirements have been defined.
What is a request for Information (RFI)?
A request for information is a document companies send to vendors or suppliers to collect information about what they offer. RFIs allow businesses to clarify their needs and ask other companies questions, maintain thorough records of each company’s responses and choose a provider that fits their requirements.
