The Difference Between RFQ And RFP: When to Use Each Approach in SaaS Procurement
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The Difference Between RFQ And RFP: When to Use Each Approach in SaaS Procurement
Understand the key differences between RFQ and RFP processes and when to use each approach for effective SaaS procurement.
According to Gartner, companies waste nearly 30% of their SaaS budgets on unused or overlapping tools each year. With so much money on the line, choosing the right procurement method is more than a formality, it’s a way to avoid costly mistakes.
That’s why understanding when to issue an RFP or an RFQ matters. Both are essential parts of the SaaS buying process, but each serves a different purpose depending on what your business needs.
What is a Request for Proposal (RFP)?
A Request for Proposal (RFP) is a document companies use to invite SaaS vendors to propose tailored solutions. It includes project scope, technical and business requirements, timelines, and evaluation criteria ideal for complex or customized software needs.
What is Request for Quotation (RFQ)?
A Request for Quotation (RFQ) is a formal document businesses use to invite suppliers to provide pricing for specific products or services. It focuses on cost, quality, and delivery terms, making it ideal for standardized SaaS solutions with clear requirements and minimal customization.
What is an RFI?
An RFI (Request for Information) is a document used to collect details from potential vendors before starting a formal procurement process. It helps you understand available solutions, compare capabilities, and define requirements before creating RFPs or RFQs.
You should consider using an RFI in the following situations:
- Early Research Phase: When exploring new solutions or technologies, you need to gather information from vendors to better understand the market, available options, and possible approaches.
- Complex or Emerging Requirements: If your needs are still evolving and you’re unsure which approach fits best, an RFI helps you identify vendors with the right skills and capabilities.
- Assessing Vendor Capabilities: When you want to review the experience and qualifications of potential vendors before inviting them to the RFP or RFQ stage.
- Budgeting and Planning: An RFI can provide details on pricing models, timelines, and implementation costs, helping you plan and budget more accurately.
The Key Differences: RFI vs RFP vs RFQ
Understanding the difference between an RFI, RFP, and RFQ is essential for making smart SaaS procurement decisions. Each one plays a specific role in the buying journey from gathering information to requesting proposals and final quotes.
An RFI (Request for Information) helps you learn about available vendors and solutions.
An RFP (Request for Proposal) helps you compare approaches and strategies from qualified vendors. Finally, an RFQ (Request for Quotation) helps you get pricing details once your needs are clearly defined.
Together, these steps help you move from research to selection with confidence.
Comparison: RFI vs RFP vs RFQ
What Information Do You Need for a Winning RFQ and RFP?
When preparing an RFP (Request for Proposal) or RFQ (Request for Quotation), the type of information you include can make or break your vendor evaluation process.
An RFP focuses on high-level business context and planning, while an RFQ centers on technical details and pricing. Both are essential for clear, informed decisions in SaaS procurement.
How to Streamline your procurements with Spendflo using RFP and RFQs
Managing RFPs and RFQs manually can slow teams down and lead to missed savings opportunities. Many companies still rely on spreadsheets and disconnected tools, making it hard to track vendor responses or compare proposals effectively.
That’s where Spendflo makes a real difference. One of our clients, a high-growth SaaS company, saved over $375,000 annually after centralizing their RFP and RFQ management through Spendflo. Their procurement team reduced manual work by 40% and gained complete visibility into vendor performance all within a single platform.
If your procurement process still feels fragmented, you’re not alone. Manual tracking, scattered approvals, and inconsistent pricing data cost companies both time and money every quarter.
With Spendflo, you can bring all your procurement workflows, RFPs, RFQs, approvals, and analytics into one place. You’ll collaborate faster, make data-backed decisions, and close vendor deals with confidence.
Ready to simplify your procurement process and start saving today? Book a demo with Spendflo and see how we help leading finance and procurement teams achieve guaranteed savings.
FAQs
Which comes first, RFP or RFQ?
An RFP (Request for Proposal) usually comes before an RFQ (Request for Quotation). You issue an RFP when you want vendors to present their approach, timelines, and pricing strategy for solving a specific problem. Once you’ve reviewed proposals and defined your requirements, you send out an RFQ to request detailed pricing for the chosen solution or product. In short, the RFP helps you evaluate how vendors plan to meet your goals, and the RFQ helps you compare how much it will cost.
What is the difference between an RFI, RFP, RFQ, and RFT?
Each of these procurement documents serves a unique purpose in the buying process. An RFI (Request for Information) comes first, it helps you learn about vendors, available products, and market options. Next, an RFP (Request for Proposal) gathers detailed strategies and plans from vendors on how they would meet your needs. An RFQ (Request for Quotation) follows, asking shortlisted vendors for specific pricing details and terms. Lastly, an RFT (Request for Tender) is used in formal procurement processes, inviting vendors to submit binding bids to deliver goods or services under set conditions. Together, these steps guide your procurement from research to selection.
What is the difference between an RFP and an RFI?
The main difference between an RFI and an RFP is the level of detail and purpose. An RFI (Request for Information) is used early in the process to gather general details about available solutions and vendor capabilities; it helps you understand the market. An RFP (Request for Proposal) comes later, once you have clear goals and are ready to evaluate specific solutions. The RFI informs your strategy, while the RFP helps you choose the right partner to execute it.
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