Request For Proposal is a formal document or solicitation sent by an organization to potential vendors or service providers to invite them to submit a proposal for a specific project, product, or service. The RFP outlines the requirements, specifications, and evaluation criteria, allowing vendors to understand the needs of the organization and propose their solutions or offerings.

Example

A company planning to implement a new HR software system may issue an RFP t software vendors, detailing the desired features, functionality, integration requirements, budget, and timeline. Interested vendors can then prepare and submit their proposals, which will be evaluated based on various factors such as cost, capabilities, support, and implementation approach. The company can use the RFP responses to select the most suitable vendor for their HR software project.