EOI vs RFP
Question which is probably raised now days what is the difference between EOI and RFP? You can’t give the answer of this question until you do not know what EOI is and what is RFP? EOI and RFP are two important concepts that need to be understood before one jump in the market with his own product. As both concepts share similarities with each other, there does exists some dissimilarity between them. That’s why it is necessary for one to understand what these terms mean and what is the difference between EOI and RFP.
- EOI (Expression of Interest)
EOI also known by the name of Return on Investment (ROI), has the similar functionality to that of RFI (Request for Information) and is employed as a verification process in the original periods of procurement and lets the businesses to be able to make a formal and much more specific RFT (tender request). Whenever a company makes use of an EOI, it must estimate the power of the market and gather more information before making a request for tender. And for that to happen, a proper procedure needs to be developed, until RFT can be considered profitable.
- RFP (Request for Proposal)
On the other hand, RFP also known by the name of Request for Offer (RFO) is a document that can certainly be modified. It’s mostly used whenever a purchaser is buying a product that can be a solution to his problems or if it can satisfy his requirements. Additionally, it is found in situations where no clear alternatives or specifications can be found, and the purchasing entity is buying a number of enhancements and options. RFP is far more versatile than the RFT (which normally has well-identified solutions or features). The RFP is principally found in the professional services in which a solution can’t be defined easily.
Difference between EOI and RFP
- Different Procurement Level
EOI is often performed at the original degree of procurement. It is used when the buyer is trying to find the best solution in the industry and wants to take out certain requirements so that it could eventually go to the market in later phases. As already mentioned, the RFP is generally used in the next phase; when the buyer seeks solution-based techniques for the delivery of product or services.
- EOI and RFP Stages
EOI usually has multiple levels. It can be used to shortlist possible supplier/suppliers before seeking complete bids from renderers that are shortlisted, whereas, the RFP can either have an individual level or it can have multiple periods.
- EOI and RFP Uses
EOI can be used where we required information from the renderers is specific, but there is absolutely no surety concerning whether a dealer can be able to give the services and produce goods according to the requirements. Furthermore, in the case of EOI, buyers don’t have sufficient information to create a detailed question.
On the other hand, an RFP is employed where the need is properly identified, but the business is trying to buy a flexible or progressive solution. In simpler words, a purchaser looks for the solution-oriented product to satisfy the requirements.
But in both cases, it is important to understand the various degrees of procurement processes to make effective decisions through the organized circulation of information. I’m sure now you people have no confusion to know the difference between EOI and RFP. Infect it is also clear to all you people what is EOI and what is RFP.