RFP stands for request for proposal. It is a document in which the company requests details of detailed and comparable proposals from different suppliers for a particular product or service. The document should provide all the required information necessary to make a smart purchase.
The company should spend adequate time on this to list out all the conditions that they want to know from the suppliers. RFP will be requested after transporting out to an RFI. RFQ is requested for quotation, which is a competitive bid document used to lure suppliers into submitting a bid on a project. An RFQ should include technical specifications along with commercial requirements.
RFQ is also referred to as IFB. Typically an RFQ is proceeded by an RFP where the shortlisted suppliers are requested to deliver a more detailed price quotation. The RFQ phase the association of suppliers is crucial since following this stage, the company chooses which supplier to contract out the project.