How to Create a Stakeholder Engagement Plan (+ Templates)
Every purchase you make—whether it’s a new laptop, a marketing tool or a home renovation—starts with research. You compare prices, check reviews and weigh your options, all so you can get the best deal.
Businesses go through a similar process when selecting vendors for a project, but on a much larger scale.
They rely on RFQs (Request for Quotation) and RFPs (Request for Proposal) to gather competitive bids and proposals and make informed decisions.
But what’s the difference between an RFQ vs. RFP and when should you use them? It all comes down to where you are in the procurement process and what you're looking to achieve.
Are you sourcing the most competitive price for a clearly defined product or service?
If so, an RFQ will keep things simple and focused on cost. But if you need a vendor who can offer innovation, expertise and creative solutions tailored to your business needs, an RFP is your go-to option.
Understanding the difference ensures you use the right approach to get the best results.
In this article, I’ll break down the key differences between an RFQ and RFP, explore real-world examples and help you decide which one is the best fit for your business.
Let’s dive in!
An RFP (Request for Proposal) is a formal document that organizations use to solicit bids from vendors or service providers for a specific project, product or service. It typically contains the following information:
Companies, government agencies and nonprofits mostly issue RFPs or bid requests to open up competition among vendors and remove bias from the selection process. And in some cases, a competitive bidding process may drive down the project cost.
Vendors then submit RFP responses or proposals explaining how they can meet the requirements, often including pricing, timelines and qualifications.
While each sector has its nuances, the core objective of an RFP remains the same: finding the right vendor to fulfill a specific need or goal.
A well-crafted RFP plays a crucial role in this process. It helps organizations identify qualified partners who can deliver the best solutions.
To see how this works in action, let’s explore a real-life example of an RFP in practice.
When New Jersey City University (NJCU) wanted to use data to better understand student success, it put out an RFP for predictive data analytics solutions. The goal? To find a vendor that could help turn raw numbers into meaningful insights that improve student outcomes.
Right from the cover page, this RFP makes an impact with a bold image of the university and key dates for issuance and bid openings. Inside, it lays out everything a vendor needs to know—bidder guidelines, scope of work, submission requirements and the financial proposal structure.
NJCU is clear about what it wants to achieve and sets expectations upfront. It also emphasizes supplier diversity, showing a commitment to working with a broad range of vendors.
One of the standout features of this RFP is its detailed list of questions, which can serve as a great reference if you're putting together an RFP of your own.
Looking for more inspiration? Check out our curated list of 24 industry-specific RFP examples to guide you.
Once you're ready to create your own, this Website Design RFP template gives you a solid starting point. It's designed to help you clearly outline project requirements, evaluation criteria and expectations—so you can attract the right vendors with ease.
Want to make your RFP more engaging? Visme’s animation and interactive features let you add clickable elements, hover effects and embedded videos to create a dynamic, modern document that stands out. Share your RFP as a link, downloadable PDF or even an interactive presentation.
An RFI (Request for Information) is typically the first step in the procurement process. In the early stages of your project, it helps you explore available solutions and how vendors approach your challenge.
Think of an RFI as a low-commitment way to explore potential suppliers and gather early information. It also helps suppliers gauge if they’re the right fit.
Many businesses use an RFI as a research tool to streamline their decision-making in the source-to-contract or procure-to-pay process.
Key thing to remember: an RFI isn’t a contract—it’s just a tool to explore your options.
After reviewing the RFI responses, you’ll have a clearer understanding of vendor capabilities, available technologies and industry trends.
From your research in the RFI stage, you’ll most likely figure out what you need. An RFP (Request for Proposal), on the other hand, helps you find the best vendor to deliver it—one that meets your technical requirements, aligns with your budget and brings the right experience and expertise to the table.
Since RFIs are exploratory, vendor responses tend to be more general, broad and open-ended.
RFPs require vendors to submit comprehensive bid proposals, including detailed strategies, pricing, timelines and sometimes even sample work or a prototype so you can compare and choose the best option.
Here’s how both documents are used in the procurement process:
Let’s say a company is looking for a CRM (Customer Relationship Management) solution to improve customer interactions and sales tracking.
First, they issue an RFI (Request for Information) to gather insights on the best CRM options in the market. The goal is to understand the key features available, integration capabilities, pricing models and how different vendors approach customer relationship management.
Vendors respond with details about their platforms, best practices and case studies of similar businesses they’ve helped. At this stage, the company isn’t making any decisions—it’s simply exploring possibilities.
After reviewing the RFI responses, the company has a better idea of what it wants in a CRM. Now it moves to the RFP (Request for Proposal) stage. This time, it’s not just asking for general information—it’s looking for a vendor that can meet its specific needs. The RFP outlines requirements such as automation features, reporting tools, integration with existing software, security standards and budget constraints.
Vendors submit detailed RFP responses with templates explaining how their CRM meets these needs, along with implementation plans, timelines and pricing.
If you’re a vendor looking to craft a winning response, here’s a template to help you put together a strong proposal that gets a yes.
An RFQ (Request for Quotation) is a formal document that organizations use to request pricing from vendors for a specific product or service. It outlines the exact specifications, quantities, delivery requirements and terms needed so that businesses can compare bids based on cost and value.
RFQs are typically used when the buyer knows exactly what they need and is primarily focused on obtaining the best price.
They are most common in industries like manufacturing, construction and retail, where price and volume are key factors in decision-making.
Let’s say an organization needs to stock up on printing paper for its office. They’ve been buying from three major suppliers—X, Y and Z—but they want to make sure they’re still getting the best deal.
So, instead of just reordering from the same vendor, they send out an RFQ (Request for Quotation) to all three, asking for updated pricing, bulk discounts and delivery terms. This way, they can compare offers side by side and lock in the best price without compromising on quality or service.
Many procurement teams rely on templates for RFQs to keep vendor responses consistent. This not only makes it easier to compare quotes side by side but also speeds up the process and saves time.
Government-issued RFQs are usually packed with detailed information. This 24-page RFQ from the United States Department of Transportation, Federal Highway Administration (FHWA) is no exception. It specifically requests brand-name traffic counting equipment and related supplies so vendors meet precise requirements.
Right from the cover page, you get all the essentials—issuing office details, agency contact, solicitation number, release date and key deadlines for technical questions and quotation submissions.
Inside, the document is structured into four key sections:
It’s a textbook example of a government RFQ—thorough, structured and designed to ensure a fair, competitive bidding process.
If you’re looking to create your own RFQ, Visme makes it easy with a customizable RFQ template that you can adapt to fit any industry. Use our brand wizard to automatically apply your company’s fonts, colors and logo to ensure a polished, branded document.
The main difference between an RFQ (Request for Quotation) and an RFP (Request for Proposal) comes down to what information you’re asking from vendors.
Organizations typically send out an RFQ when they know exactly what they need, don’t require customization, and want straightforward pricing comparisons.
An RFP, on the other hand, is about finding the right vendor. You’re not just comparing prices to get the best deal; you're also evaluating expertise, approach and overall fit for your project.
Another prominent feature that sets RFQs and RFPs apart is the process.
Since RFQs follow a straightforward, price-driven approach, the process is typically quicker.
The RFP process is more complex and has a longer evaluation period.
Here’s how the process typically works:
For better understanding, here’s a side-by-side comparison table that highlights the difference between RFP vs. RFQ.
| Feature | RFQ (Request for Quotation) | RFP (Request for Proposal) |
| Purpose | Focuses on getting price quotes for specific products or services. | Seeks detailed proposals on how a vendor will meet a project’s needs, including approach, timeline and pricing. |
| Use Case | Used when requirements are clear and price is the primary decision factor. | Used when the organization needs expert input on solutions, strategy and execution. |
| Details Requested | Pricing, payment terms, delivery timelines and warranty information. | Proposed methodology, experience, technical approach and cost breakdown. |
| Evaluation Criteria | Primarily based on price and terms. | Assessed based on quality, expertise, approach and cost. |
| Process Complexity | Simple document with limited back-and-forth communication. | More detailed and involves vendor presentations, negotiations and multiple evaluation rounds. |
| Benefits | Saves time by quickly gathering price comparisons from multiple vendors. | Helps organizations find the best vendor by evaluating solutions, experience and pricing holistically. |
| Questions Asked | “What is your price per unit?” “What are your payment terms?” “How soon can you deliver?” | “How will you approach this project?” “What is your experience with similar projects?” “What is your proposed timeline and budget?” |
| Process | Issued to multiple vendors → Vendors submit price quotes → Organization selects the best option. | Issued to vendors → Vendors submit detailed proposals → Organization evaluates and negotiates before selecting the best fit. |
Choosing between an RFQ and an RFP depends on how much information you already have about your needs and what you expect from vendors.
If you know exactly what you want and are simply looking for the best price, an RFQ is the way to go. But if you need guidance on the best solution, vendor expertise or a tailored approach, an RFP is the better choice.
Both requests for proposals and requests for quotations are issued by organizations looking to procure goods or services, but the type of entity and the purpose behind the request can vary.
The procurement team typically sends an RFP when it needs vendors to propose solutions, strategies or specialized services.
Buying committees may get involved in large businesses, government agencies, nonprofits, and educational institutions, where purchases require multiple stakeholders' approvals.
Within these organizations, multiple departments may be involved:
The major issuers of RFQs are procurement teams in large corporations, government and public sector organizations, manufacturers and retailers and construction and engineering firms. In these organizations, here’s how the responsibilities are typically divided:
In some cases, organizations may start with an RFP to explore vendor capabilities and then issue an RFQ to the shortlisted vendors to finalize pricing.
The key difference between an RFP (Request for Proposal) and a bid request (also known as an Invitation to Bid or ITB) comes down to complexity and evaluation criteria.
A bid request is used when the scope of work is straightforward and all vendors can deliver the same product or service. The primary deciding factor is cost and the contract is awarded to the lowest bidder. This process is common in government contracts to ensure fairness and eliminate bias.
Request for Proposal (RFP) is used for more complex projects where factors like expertise, approach and innovation matter as much as price. The selection process involves evaluating each vendor’s experience and technical capabilities, leading to a higher-quality outcome but also a longer and more detailed evaluation process.
There are four main types of Request for Quotation (RFQ), each designed for different purchasing scenarios:
An RFI (Request for Information) is an alternative when a company needs general details about vendors before requesting quotes. An RFP (Request for Proposal) is used when price isn’t the only factor and businesses need solutions, not just cost estimates.
An RFI (Request for Information) usually comes before an RFP. Before sending out an RFP, companies often start with an RFI (Request for Information) to get a better sense of what solutions are out there and which vendors might be a good fit. Some companies also use market surveys or prequalification questionnaires to narrow down options before moving forward with an RFP.
At the end of the day, choosing between an RFP or an RFQ comes down to your goals and where you are in the procurement process.
If you are actively searching for a vendor or partner who brings expertise and innovation to the table, an RFP is the way to go. But if you already know what you need and just want the best deal, an RFQ keeps things simple.
That said, creating RFPs and RFQs manually can be a hassle. Visme comes loaded with hundreds of customizable templates and a dozen of features that make the process easier.
Even if you’re racing against the clock, our AI document generator helps you create polished, professional RFPs and RFQs in minutes,
Plus, Visme’s collaboration and workflow management tools make teamwork effortless. Share drafts, collect feedback and keep everything organized in one place—no endless email chains. When it’s time to send your RFP, built-in analytics let you track engagement so you can see which vendors are taking a closer look.
Ready to simplify your procurement process? Book a demo today and see how Visme can help you create and organize RFPs and RFQs effortlessly.
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