RFx is one of the most common acronyms in strategic sourcing and procurement. RF stands for "Request For" and the x is just a placeholder for I, P and/or Q.
RFx captures all references to requests for Information (RFI), requests for Proposal (RFP) and/or requests for Quote (RFQ) – and, occasionally, requests for Bid.
RFx captures all references to requests for Information (RFI), requests for Proposal (RFP) and/or requests for Quote (RFQ) – and, occasionally, requests for Bid.
The process is difficult to define because it can range from a simple, one-time RFQ to a complex, multi-stage RFI / RFP / RFQ process. The complexity is determined by the extent of the requirements, the number of suppliers that have been qualified, the expected competition in your supplier base, the inherent risk in the sourcing effort, and the projected savings or cost avoidance opportunities.
Every RFx has a unique and primary goal. Typically, these are as follows:
RFX technologies have come along way in the last decade, with many benefits above and beyond simple process automation and time savings in the sourcing cycle. Most solutions have sophisticated workflow management capabilities, a centralized repository for all project information, best practice templates, survey capabilities, and standardized processes to base your sourcing process on. Furthermore, the more innovative technologies come with supplier portals that will engage with your suppliers in the selection process. They will not only be able to enter their information directly, but also to offer suggestions and collaborate with you in streamlining the process and introducing new product.
Although one of the least innovative technologies on the market, RFX is still one of the most important because the more time you have to focus on strategic planning, the more likely you are to spot innovative solutions that save time and money.
RFX technologies have been a major breakthrough in strategic sourcing, as was the introduction of collaborative supplier portals. The next major innovation you could expect to see will be the integration of business intelligence that will let you distinguish supplier viability and quality before your first interaction, so you don’t waste time screening suppliers already known to be inappropriate.
Today, there are a large number of RFX technology suppliers in the marketplace, ranging from standalone solutions to tightly integrated solutions. To get the selection process right, check out our video Choosing Tools and Technology with Strategic Fit for essential tips and helpful examples.
Every RFx has a unique and primary goal. Typically, these are as follows:
- RFI – to maximize potential decision points, while keeping supplier evaluation costs low
- RFP – to determine a set of suppliers capable of meeting organizational needs and to identify those suppliers that can actually submit bids
- RFQ – to make the final award decision.
RFX technologies have come along way in the last decade, with many benefits above and beyond simple process automation and time savings in the sourcing cycle. Most solutions have sophisticated workflow management capabilities, a centralized repository for all project information, best practice templates, survey capabilities, and standardized processes to base your sourcing process on. Furthermore, the more innovative technologies come with supplier portals that will engage with your suppliers in the selection process. They will not only be able to enter their information directly, but also to offer suggestions and collaborate with you in streamlining the process and introducing new product.
Although one of the least innovative technologies on the market, RFX is still one of the most important because the more time you have to focus on strategic planning, the more likely you are to spot innovative solutions that save time and money.
RFX technologies have been a major breakthrough in strategic sourcing, as was the introduction of collaborative supplier portals. The next major innovation you could expect to see will be the integration of business intelligence that will let you distinguish supplier viability and quality before your first interaction, so you don’t waste time screening suppliers already known to be inappropriate.
Today, there are a large number of RFX technology suppliers in the marketplace, ranging from standalone solutions to tightly integrated solutions. To get the selection process right, check out our video Choosing Tools and Technology with Strategic Fit for essential tips and helpful examples.