Step 1: a customer reaches out to a long list of suppliers to understand whether they are qualified to provide a product or service. This is often defined as a “Request for Information” (RFI) process.
Step 2: a customer reaches out to a shortlist of suppliers to request a product or service. This is often defined as a “Request for Proposal” (RFP) process.
Step 3: a supplier sends a proposal to a customer. This is sometimes referred to as a response to a request for a proposal.
Step 4: the customer selects its preferred supplier after a review and/or interview process
Step 5: the two parties sign a contract
