In addition to working with reverse E-auctions, a buyer has the ability to launch an RFx. This functionality incorporates 5 different types of RFx – RFI, RFQ, RFP, RFT and RFS. The specifics for each type re described below.
RFI
The basic, most general type of RFx. The RFI stands for request for information and usually involves a buyer who has an idea, but is not aware of the specific parameters and details that would make the idea come to fruition. The buyer then launches the RFI and invites specific sellers, capable of responding to the requests, submitted in the RFI.
RFQ
The RFQ stands for request for quotation and is focused on extracting information, as well as pricing about a specific product or service. The product or service is already known and the request is for a detailed quote on what the buyer will get after the purchase.
RFP
The RFP stands for request for proposal and differs from the RFQ in a few key aspects – with an RFQ, the product/service being solicited is a known quantity, while with an RFP, the buyer is open to different solutions and ways of achieving a specific goal – whether it be a purchasing strategy for buying a product or service or a more general enquiry for a project that is in the development stage.
RFT
The RFT stands for request for tender, which is used to request selected sellers to provide their bids in a competitive setting. It can be used as a first step before an actual auction is launched by the buyer.
RFS
The RFS stands for request for solution, which is used when the buyer is aware of the problem at hand and is therefore looking for potential solutions that sellers can propose. It differs from an RFP by the outsourcing of the solution to the sellers, as the solution is much better defined in an RFP, where it is often outside the scope. Within an RFS, a general solution is completely within scope.