What is the Difference Between an RFQ, RFP, and LT?

In Tradogram, these terms refer to different types of Sourcing Events. While the core functionality remains the same across all three, the choice of "Request Type" helps communicate the intent of your event to suppliers and organizes your internal records.

Request Types and Their Uses

When creating a sourcing event, you can select from three types. Your choice will determine the document's prefix and numbering system (e.g., RFP-0001 vs. RFQ-0001):

1. Request for Quotation (RFQ)

  • Primary Goal: Gathering specific pricing offers from suppliers.
  • Functionality: You define the items and quantities needed, and suppliers provide the costs. You can control exactly which fields (like Unit Price) the supplier must complete.

2. Request for Proposal (RFP)

  • Primary Goal: Gathering detailed information about the solutions, goods, or services a supplier can provide.
  • Functionality: RFPs focus on qualitative data. You can require suppliers to provide item details, technical specifications, and attached documentation to justify their proposed solution.

3. Limited Tender (LT)

  • Primary Goal: A sourcing event restricted to a specific, pre-qualified group of suppliers.
  • Functionality: Like the RFQ and RFP, it utilizes the same flexible form but categorizes the event under the "LT" prefix for tracking and compliance purposes.

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