RFI in procurement: Meaning, examples, and how to write one

When your business faces a challenge in procurement or needs a new vendor. How do you compare potential vendors and suppliers?

Manually researching online about the potential customers is time-consuming and often leads to inconsistent information. Instead, you can use a more standardized process with an RFI (Request for Information). RFIs ensure you gather comprehensive and comparable data from all potential vendors efficiently on request.

What is the meaning of RFI (Request for Information) in procurement?

It helps organizations understand market offerings, identify qualified vendors, and assess preliminary capabilities before moving on to more detailed evaluations.

This approach simplifies the evaluation process and ensures you have a clear, consistent understanding of what each supplier brings to the table. In essence, the primary goal of RFI in procurement is to clearly understand the available options, allowing you to make informed decisions when selecting the best vendor to meet your business needs.

When should you use an RFI?

An RFI can be a strategic way to understand which products or services align with organizational needs. Here’s when you should use one:

• Explore potential solutions: Use an RFI when you’re unsure what products or services exist to address a specific business need. This step helps confirm market availability before moving forward.
• Clarify vendor capabilities: If you know there’s a need or challenge but aren’t sure which vendors can solve it, an RFI can highlight supplier strengths and weaknesses, narrowing down your list of potential partners.
• Streamline the RFP process: Issuing an RFI prior to a formal Request for Proposal (RFP) helps filter out unsuitable suppliers. By gathering early insight, organizations save time, money, and effort during subsequent RFP evaluations.

For example, a mid sized manufacturing company might be searching for a new inventory management system but doesn’t know which features to prioritize:

1. They issue an RFI, outlining their need for real-time reporting, seamless ERP integration, and scalable licensing options.
2. Multiple suppliers respond, describing their product functionalities and implementation timelines.
3. With these insights, the manufacturer then narrows its list to three viable vendors, saving considerable time and cost before drafting a formal RFP.

Incorporating an RFI into the initial stages of procurement can help businesses avoid guesswork by clarifying market availability and vendor expertise.

What are the benefits of an RFI in procurement?

• Efficiency: An RFI allows procurement teams to focus on qualified suppliers, reducing the time spent on evaluating vendors that might not be a strong fit.
• Risk mitigation: Through upfront inquiries and clarified requirements, the RFI process aligns potential solutions with project goals, minimizing the chance of costly missteps later.
• Market insights: RFIs offer a concise view of what solutions exist and how different suppliers stack up, allowing decision-makers to better gauge capabilities and overall market trends.

By integrating an RFI into procurement, businesses can avoid the pitfalls of incomplete information and ensure that subsequent steps—such as issuing an RFP—are more targeted and productive.

What to include in an RFI

Creating a comprehensive RFI includes defining your project requirements, organizational context, and response guidelines upfront, so you can set clear expectations and streamline the evaluation process.

Here’s what to include:

• Project description and goals: Clearly explain the purpose, scope, and objectives of your project. Provide background details that highlight why it’s necessary and what success looks like, so vendors can tailor their solutions to your specific needs.
• Company information: Offer an overview of your organization’s mission, values, and position within the industry. This context helps vendors propose solutions that align with your business environment and culture.
• Vendor requirements: Specify the skills, qualifications, and credentials you expect. Highlight relevant certifications, technical capabilities, and past experience, ensuring you receive responses only from vendors who meet your criteria.
• Submission instructions: Outline how you want responses formatted, including preferred digital file types, required sections, and overall structure. This clarity promotes consistency and simplifies comparison.
• Requested information: Clearly list the details you need from vendors—such as their background, offered solutions, prior experience, and detailed pricing—so you can properly evaluate their suitability and make an informed decision.

By incorporating these elements, your RFI will clearly communicate your requirements and streamline your procurement process.

Tips for creating RFIs in procurement

‍Here are some additional tips to get the most out of an RFI in your procurement process:

• Use a consistent template: Standardize your RFI format to create easier comparisons and ensure each vendor is evaluated on the same criteria.
• Engage diverse vendors: Reach out to a variety of suppliers. A broader pool of responses gives you more options and increases the likelihood of finding the best fit.
• Set clear deadlines and formats: Specify the submission deadline and preferred format. Timely, organized responses simplify the review process.
• Review and compare fairly: Evaluate all responses using transparent criteria to identify the most suitable options and make informed procurement decisions.

What’s the difference between RFI, RFQ, and RFP?

RFI (Request for Information), RFP (Request for Proposal) and RFQ (Request for Quotation) are all procurement tools, but they serve distinct purposes in the vendor selection process.

RFI is used to gather general information about potential vendors, while RFP seeks detailed proposals for specific projects or needs. RFQs are typically more specific than RFIs and are used to get exact quotes based on clearly defined needs.

Here's a more detailed breakdown of the differences:

Using the right procurement tool at the right stage simplifies vendor selection, saves time, and ensures you get the best-fit solution for your needs.

Optimizing procurement beyond RFIs

An RFI helps businesses evaluate suppliers, ensuring better procurement decisions. But RFIs are just one piece of a larger process—without efficient systems, procurement can still face delays, compliance risks, and inefficiencies.

Automation streamlines procurement by centralizing purchasing, enforcing policies, and reducing manual processing. With Ramp Procurement, businesses gain real-time visibility and control over spending.

Curious about Ramp’s impact? Ramp used its own procurement software to save $350K in vendor costs and reduce monthly review times by over six hours.

Want the same? Learn more about how Ramp Procurement can save your procurement team time and money or explore our interactive demo.