A Request for Proposal (RFP) is an invitation for suppliers, often through a bidding process, to submit a proposal to solve a specified problem, or meet a specified requirement. By sending the same RFP to a number of possible suppliers, the RFP process helps to bring structure to a company’s procurement decision and allows an objective comparison of supplier responses.
Glossary
Request for Quotation
A company’s procurement department sends out an Request for Quotation (RFQ) to invite suppliers to bid to supply them with goods or services. As well as price, the customer looks at things like delivery schedules, quality, and technical ability.