Here’s a detailed introduction to the Request for Information document and its benefits. Find out how RFIs work, why businesses should use them, and how to create one.

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Nobody buys an expensive gadget without first asking around as to who stocks these products and getting reviews from previous customers. In a procurement process, this action is known as the Request for Information (RFI) and it sets businesses up for collaborative success.

The RFI is the first step to ensuring you have all the details you need to make informed decisions during sourcing and procurement. 

In many ways, it may be the most crucial step as it determines which companies will be included in your pool of potential sellers as your project progresses.

Keep reading as we explore everything you need to know about Requests for Information, including how they work, their benefits, and use cases.

What is an RFI?

A request for Information is a formal document that businesses use to gather information from potential vendors about specific products or services.

Think about the RFI as the first step in evaluating a supplier’s ability to deliver the products or services you need.

By sending RFIs to prospective sellers, you can better understand what’s available in the market, including expertise, capabilities, experience levels, and more.

You should note that the Request for Information is only the first document involved in the procurement process and is typically not comprehensive. This is because the Request for Proposal and Request for Quotation documents that follow will usually cover the more complex details you need.

However, the responses you get to an RFI will highlight those companies you should partner with.

RFI vs. RFP: What’s the difference?

The Request for Proposal (RFP) is another document that businesses typically leverage during the procurement process. However, it is distinctively different from the RFI in terms of content, function, and several other fundamentals.

The RFP is typically the most intensive of the three information-sourcing documents in the procurement process. This is because it requests all the complex details regarding how the vendor intends to fulfill the project or contract.

In other words, a Request for Proposal will typically inquire about strategy, processes, potential roadblocks, and problem-solving methods. 

RFPs are very formal and creating one is time-consuming. They are typically leveraged for larger, more complex, and more expensive projects.

RFI vs. RFQ: What’s the difference?

Another document to consider in the procurement process is the Request for Quotation (RFQ).

The RFQ is generally used when your inquiry is primarily about cost. In this case, you already have a complete picture of your project requirements and how to achieve your objectives. All you need now are pricing options.

By sending out a Request for Quotation to your prospective vendors, you can clarify pricing and pick out the best option that combines cost-effectiveness with your project objectives. 

In your RFQ document, you should include essential details, such as project quality, quantity, delivery costs, timelines, and more.

That said, let’s examine what makes the RFI critical in the procurement process.

What is the Role of an RFI in Procurement?

Simply put, the function of the Request for Information document is to obtain general information regarding the ability of potential suppliers to deliver specific products or services.

An RFI can also help you gain insight into more recent industry trends, new technologies, and overall market conditions.

This is why it is typically regarded as the first step in procurement planning.

In many cases, the responses to an issued RFI will determine whether or not a business moves forward with a proposed project or contract. Therefore, you should include general project details like delivery requirements, expected timeline, and more.

But remember, you should not go into extensive detail in your RFI as it is only a preliminary document.

So why should you issue an RFI for your project? Keep reading to find out.

What are the Benefits of a Request for Information?

Statistics show that 43% of organizations use RFI documents as part of their procurement process. Here are some of the reasons these companies leverage the Request for Information:

• Clarification: An RFI can help your organization estimate the ability of potential vendors to deliver on your project requirements. This helps you create a shortlist of capable product or service providers. 
• Market insight: Sending out RFIs can also give you a broader understanding of what’s available in the market — including vendors, popular solutions, and emerging trends.
• Risk reduction: Another benefit of Request for Information documents is that they can help reduce risks and costly mistakes associated with the procurement process. For instance, you can gain quick insight into vendor experience and project history.
• Improved decision-making: The responses you get from RFIs can provide you with valuable information to help you make better decisions while narrowing down the list of potential vendors.

Now that you know why the RFI is a valuable tool in procurement, here are some of its popular use cases across various industries.

What are Some Common RFI Use Cases?

The most common reason businesses use RFIs is when they need to evaluate multiple vendors and need quick information to inform their decisions. This is particularly common in purchase situations.

Here are some common instances where organizations across various industries may issue an RFI:

• IT companies: If you’re looking to acquire new gadgets or onboard new software, issuing an RFI to potential vendors can prove crucial when comparing variables such as setup costs, integration options, and included support.
• Construction industry: Requests for Information are also very common in the construction industry, with clients sending them to contractors and contractors sending them to subcontractors to get information on projects, materials, and timelines.

• Healthcare industry: Healthcare providers typically have to buy new equipment and software or upgrade their existing set. In this case, sending out RFIs can provide you with insights into available market offerings, including pricing and post-purchase support.

• Retail: Retail companies may also use RFIs to evaluate suppliers of the items or products they resell to confirm various details, such as availability, product dimensions, quality, and more.

• Financial services: On the finance scene, companies sometimes use RFIs to review vendors that offer the platforms they need — say, transaction trackers, data management, scalability, and integration capabilities.

That said, what details should you include in your Request for Information?

What to Include in an RFI

While the general information in various company RFIs will typically differ based on industry and project specifications, an effective Request for Information contains certain key elements:

1. Statement of need

The first step to creating an RFI that properly communicates your inquiries is writing your statement of need. This section provides vendors with a brief overview of the problem they need to solve and the criteria they need to meet.

The goal here is to provide your prospective vendor with enough information to understand the problem you have even if they don’t have prior knowledge of your company.

For instance, if you were sending RFIs to marketing companies, you should give them an overview of your brand and the products or services you offer. Then, go on to state the solutions you seek, say, improved brand awareness or increased sales.

2. Company information

Depending on your industry or niche, it may be a good idea to include additional information about your company and its business model. This can help prospective vendors conclusively determine if they are a good fit for your project and inform their approach to providing potential solutions.

In addition, sharing company-specific details like your organizational values, target audience, and more can help suppliers tailor their RFI responses better.

3. Relevant project details

This is a crucial section in your RFI. After all, potential vendors need to have an in-depth understanding of your problem to be able to provide a solution. Therefore, it is important to include any information that your vendor needs if it is to draw up an effective plan of action.

Here’s a quick checklist to help you here:

• Project goals: Provide detailed information on your project objectives.
• Evaluation criteria: You should also share your selection requirements with potential vendors to help them determine if they have what it takes to fulfill your project.
• Response deadline: State how long vendors or suppliers have to come up with their solution and the time frame for its submission.
• Submission details: Ensure that you clearly specify how and where vendors need to send their responses to your RFI.

4. Response section

Finally, you should also include a section detailing the format of responses you’re expecting from the recipient of your Request for Information. This ensures you get relevant and standardized responses that make your evaluation process as straightforward as possible.

In addition, you can also ask responders to tell you why they’re the best for the job. This can help you determine what companies make your shortlist for the next stage of the process; the Request for Proposals.

In your response section, there are two particular fields you should provide dedicated spaces for — a section for the specific information that you request and a section for vendor qualifications. 

In the following paragraphs, we’ll highlight some other best practices for your RFI.

What are Some RFI Best Practices?

The better your Request for Information is, the higher the quality of responses you’ll get and the more informed your decision will be. 

Here are some industry best practices to help you create effective RFIs:

• Always state the information you need clearly. It is important to keep your questions as clear as possible to prevent getting vague, unhelpful responses. The clearer your inquiries are, the more valuable the responses will be.
• Keep your RFI as straightforward and brief as possible. Requests for Information are generally not supposed to be lengthy or bulky. So, you should only request information that is relevant to the specific solution you need.
• Give vendors enough time to respond. While RFIs are typically not as comprehensive as RFPs or RFQs, you also want your prospects to have enough detail to prepare a response. Two to four weeks is the typical window for RFI responses.
• Use the same RFI template for each project. Using one template for all RFIs you send during a project will make comparisons and evaluation easier as you’ll get standardized responses. 
• Consider using visual aids in your RFI. Depending on your niche or project complexity, using visual aids in your RFI may help potential vendors understand your project better, leading to more relevant responses. This is particularly common in the construction industry.

That said, let us quickly run you through a typical RFI process.

How Does the RFI Process Work?

The Request for Information phase of procurement typically occurs in four phases:

1. Client creates the RFI document 

The step is creating the RFI document itself. During this phase, the client will typically add essential details about their company, the problem they’re trying to solve, and their project requirements in the RFI. This is to provide prospective vendors with the information they need to create educated responses. 

During this phase, Guru can help you with the data-gathering process.

With Guru’s AI-powered intranet wiki, pulling information from anywhere in your organization’s database or integrated apps becomes much easier. This means you don’t have to waste time searching for the details you need.

In addition, Guru can also suggest information based on context, ensuring that you include all the relevant details that vendors may need in your RFI document. The built-in AI assistant can also help you with drafting the content of your RFI.

2. Vendors draft and issue their RFI responses

Once vendors receive your Request for Information document, they’ll typically go on to draft their response. This should happen within your stipulated time frame for response submission, typically about three weeks.

It is important for you to issue a template to guide the answers of your protective vendors. By tailoring their responses, you can improve the chances of getting highly relevant answers that provide the information you need.

It also ensures you get responses that are easy to compare and evaluate.

3. Client reviews responses

Once the RFI submission deadline has passed and you’ve collated all the responses you received, the next step is to review each response and determine if it meets your minimum requirements. 

The key here is to look for information that indicates a vendor’s ability to meet your project expectations. Details like their history, experience levels, and offered services can give you the insight you need.

You should note that project-specific information, like pricing, budget, and delivery timelines, will typically not be in an RFI response.

4. Client moves on to the next procurement phase (the RFP)

Based on the responses you get, you can then determine which vendors meet your preliminary qualifications for your project and shortlist them. Then, you can move on to the next phase in the procurement process, which is the Request for Proposal.

You should note it is good practice to inform the vendors that receive the RFI document of your decision, regardless of what you decide.

RFI Examples to Inspire You

Do you want inspiration for your next RFI? Here are two real-world examples to provide you with some valuable insight when drafting your next Request for Information:

The City of Phoenix CCMS RFI

The City of Phoenix wanted a criminal-case management system (CCMS). So, they created a Request for Information document to identify potential vendors. Based on the unique requirements for such a solution, the RFI contained strict product specifications and evaluation criteria for prospective vendors who planned to send in a response.

U.S. General Services Administration (GSA) RFI

The United States GSA wanted to reduce greenhouse emissions from commercial buildings and needed innovative solutions to the problem. So, the approach was to issue an RFI seeking emerging and sustainable technologies to improve energy efficiency and decarbonization in commercial buildings. The RFI also required prospective vendors to suggest measurable success criteria across several categories.

Over To You!

While the procurement process typically comes with several hurdles and risk factors, leveraging tools like the Request for Information document can help make the process as seamless as possible. Since RFIs typically help you acquire essential information about your prospective vendors, you can create an informed list of suppliers and significantly improve your chances of picking the ideal partner for your project.

With Guru, you can further decrease your margin for error by creating RFI documents that contain highly relevant information about your company and project requirements.

Even more, the platform can help you cut down the time you need to prepare concise and highly targeted RFI documents, ensuring greater productivity and operational efficiency. 

Sign up for Guru today and unlock the full potential of information management for your organization.

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