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.

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, especially as studies show the pandemic is accelerating the automation of procurement for 45% of organizations.

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 (RFI) is a formal procurement document that businesses use to gather preliminary information from potential vendors about their capabilities, products, or services before making purchasing decisions.

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?

In the procurement process, understanding the difference between RFI, RFP, and RFQ helps you choose the right document for your stage of vendor evaluation.

Request for Information (RFI)

Purpose: Gather general information
When to Use: Early in the procurement planning stage
Level of Detail: Basic or preliminary

An RFI is used to collect broad insights from potential vendors before you’ve fully defined your project requirements. It helps you understand available solutions, capabilities, and approaches in the market.

Request for Proposal (RFP)

Purpose: Request detailed proposals and strategies
When to Use: For complex projects requiring tailored solutions
Level of Detail: Comprehensive and formal

An RFP goes deeper, inviting vendors to propose strategic solutions based on your outlined goals and specifications. It’s best used when you’re evaluating multiple approaches and need to compare vendor methodologies, expertise, and implementation plans.

Request for Quotation (RFQ)

Purpose: Request pricing quotes
When to Use: When project requirements are fully defined
Level of Detail: Price-focused and specific

An RFQ is used when your main goal is to compare costs. At this point, you already know your project’s scope and technical requirements—you’re simply seeking pricing and delivery details to identify the most cost-effective option.

In your RFQ document, be sure to include details such as quantity, quality expectations, delivery costs, and timelines to ensure accurate and comparable vendor responses.

In summary:

• Use an RFI to explore options.

• Use an RFP to evaluate solutions.

• Use an RFQ to compare prices once requirements are clear.

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:

• Vendor qualification: Quickly assess supplier capabilities and create a shortlist of qualified providers.

• Market intelligence: Understand available solutions, pricing ranges, and industry trends.

• Risk mitigation: Identify potential issues early, which is critical in an environment where 43% of CPOs report that overall procurement risk had increased significantly.

• Strategic planning: Make informed procurement decisions with comprehensive market data.

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.

Common RFI use cases by industry:

• IT companies: Software selection, hardware procurement, system integration projects

• Construction: Material sourcing, subcontractor qualification, project feasibility studies

• Healthcare: Medical equipment purchases, software upgrades, vendor capability assessments

• Retail: Supplier evaluation, product sourcing, inventory management solutions

• Financial services: Platform selection, compliance solutions, data management systems

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, which is a crucial step since research shows that often only 20-40% of data needed for a tender is centrally stored and readily available.

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.

Essential RFI best practices:

• Clear communication: Use specific, direct questions to avoid vague responses.

• Concise scope: Include only relevant information for your specific needs.

• Adequate timeline: Provide 2-4 weeks for vendor responses.

• Standardized format: Use consistent templates across all vendors, as this can help automate data-checking and boost data quality by as much as 20-50%.

• Visual aids: Include diagrams or charts for complex requirements.

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.

Streamline your RFI process with your AI source of truth

While the procurement process has its hurdles, a well-structured RFI can make it significantly smoother. By gathering the right information upfront, you can build an informed list of suppliers and increase your chances of a successful partnership.

Creating effective RFIs, however, requires pulling accurate, verified information from across your company—a challenge compounded by the fact that over 70% of CPOs had difficulty attracting talent in the last year. This is where an AI source of truth becomes essential. Guru helps you Connect all your company's information into a single, trusted brain. From there, your team can Interact with a Knowledge Agent to instantly find data or draft RFI content, confident that the information is up-to-date. Finally, subject matter experts can Correct and verify knowledge once, ensuring that every RFI is built on a trusted layer of truth.

This streamlined process reduces errors, saves time, and ensures your procurement decisions are based on the best possible information. See how Guru can transform your RFI workflow and become your AI Source of Truth. Watch a demo.