Benefits of a structured RFX sourcing process
A structured RFX process not only improves purchasing decisions but also addresses common weaknesses associated with manual requests: unclear data, time-consuming comparisons of quotations, a lack of transparency, and media discontinuities in the procurement process.
A better basis for decisions
Quotes can be systematically compared and thoroughly evaluated.
Greater transparency
End-to-end visibility throughout the entire purchasing process.
Greater effectiveness
Greater competition among suppliers leads to better terms.
The meaning of RFX: RFI vs. RFP vs. RFQ
RFX is an umbrella term for various request formats used in procurement. The “X” serves as a placeholder for different types, such as RFI, RFQ, or RFP.
An RFI (Request for Information) is used to gauge the market. An RFQ (Request for Quotation) is used when specific prices, quantities, or terms are requested. An RFP (Request for Proposal) is used when concepts, solutions, or services are to be evaluated in addition to price.
RFX type
Purpose
Typical use cases
Criteria
RFI (Request for Information)
Market analysis & supplier identification
To identify potential providers and solutions
Quality, service portfolio, technology
RFQ (Request for Quotation)
Requests for prices and quotations
When the requirements are clearly defined and the focus is on costs
Price, delivery time, availability
RFP (Request for Proposal)
Complex request
When quality and performance are just as important as price
Technical specification, service quality
E-Auctions
Dynamic price negotiation
For real-time competition between suppliers for the best price
Price, competitiveness
Steps in the RFX sourcing process
An RFX sourcing process comprises several coordinated phases – from defining requirements and approaching the market to evaluating quotes and awarding contracts. Not every procurement project goes through the entire process with the same level of detail. Depending on the objective – such as entering new markets, adjusting the supplier strategy, or a specific price inquiry – certain phases are given priority.
Analysis of requirements – creating the optimal basis
The first step in any RFX process is to clarify the procurement requirements. This includes technical specifications, quantities, deadlines, general conditions, and – depending on the situation – whether suitable suppliers are already known or whether market research is required first.
Depending on the organization and the procurement task, the specification of requirements typically takes one of the following three forms:
System-supported via purchase requisitions Requirements are recorded in a structured manner in the ERP system, for example via purchase requisitions in SAP, and fed into standardized approval and procurement processes.
Ad hoc outside the system
The requirement arises at short notice and is communicated to the purchasing department via e-mail or through informal channels.
Shaped by consumer
Requirements are already formulated in such concrete terms within the department that there is limited scope for market-oriented approaches and alternatives later in the process.
Market sounding - creating the supplier base
When companies seek to tap into new procurement markets, expand their supplier base, or review their strategic sourcing direction, the initial focus is not on price but on gaining a solid understanding of the market. At this stage, the RFI serves to systematically gather relevant information about potential suppliers, their capabilities, and their technical qualifications.
This lays the groundwork for the next steps in the RFX process: Depending on the outcome, it may lead to a formal request for quotation (RFQ) or a follow-up request for proposal (RFP).
Supplier benchmarking: Suppliers can be systematically compared in terms of quality, innovation, or sustainability criteria.
Risk management:
Dependencies on individual suppliers become apparent earlier, allowing for the targeted development of alternative sourcing channels.
Cost awareness:
Market information provides a better understanding of price levels and procurement options, and helps prepare for future negotiations on a more informed basis.
Procurement of innovation:
In technology-driven or rapidly changing markets, new solutions and potential development partners can be identified at an early stage.
Efficient pricing
When specific needs are the primary focus and requirements are largely clearly defined, the RFQ (Request for Quotation) process is used. The goal is to obtain comparable quotes regarding prices, quantities, and delivery terms.
Short-term and recurring requirements:
RFQs are particularly well-suited for requirements that need to be requested quickly and are based on clear specifications, such as standardized materials, components, or services.
Supplier benchmarking and terms comparison:
Companies use RFQs to compare existing suppliers with alternative providers to systematically identify differences in price, delivery, or terms.
Time-sensitive procurement situations:
In urgent situations – such as machine breakdowns or the need for spare parts on short notice – an RFQ enables a quick, structured price determination without having to handle the process entirely on an ad hoc basis.
The reason the RFQ process is often underestimated in purchasing
Structuring complex procurement
RFPs are used when not only price, but also qualitative and performance-related criteria are taken into account when selecting suppliers. Suppliers must provide detailed information on their services, processes and technical specifications, especially for services or customized solutions.
Flexible RFP structures
RFPs are used to issue requests for a wide variety of requirements – ranging from technical equipment and IT services to consulting services. This makes the structure of the request for proposals all the more important. Depending on the material group and procurement objective, different criteria must be factored into the evaluation.
Involving suppliers in the sourcing process
In more complex projects, the RFP process is often not strictly linear. It frequently involves clarifications, requests for additional information, and technical coordination with suppliers, as well as close collaboration between the purchasing department and the relevant specialist departments.
Structured quote evaluation
Once the quotations have been received, the actual evaluation and decision-making phase begins. Depending on the procurement task, factors such as price, quality, deadlines, scope of services, or other technical criteria may play a role.
Especially when there are several vendors and more complex requirements, this can quickly lead to a significant amount of manual work: Individual quotations must be consolidated, differences identified, and evaluations documented. A structured evaluation process helps ensure that decisions are well-founded and consistently justified.
Combined evaluation of price and quality criteria:
In addition to cost, factors such as quality, service, sustainability, and technical suitability are systematically taken into account in the decision-making process.
Weigthing evaluations and ensurig transparency:
Different criteria can be prioritized in a transparent manner, ensuring that the decision-making logic remains clear to purchasing, specialist departments, and management.
Securing sound procurement decisions:
A structured evaluation methodology provides a consistent basis for selection, documentation, and future accountability.
Dynamic price negotiations in real time
E-auctions can effectively complement the RFX process when there are multiple qualified suppliers for clearly defined services and the goal is to foster structured price competition. Price negotiations take place in real time, allowing companies to immediately capitalize on market movements and fine-tune terms and conditions as needed.
For e-auctions to be used effectively, two factors are particularly important:
Select the appropriate auction format
Depending on the procurement objective and competitive landscape, various formats may be suitable – such as reverse auctions for standardized needs or other models for more specialized service scopes. The key is that the format aligns with the material group and the sourcing logic.
Manage competition and price evolution transparently
E-auctions increase transparency regarding market prices and foster direct, transparent price competition among qualified suppliers. This allows prices to evolve dynamically over a short period of time without replacing the upstream selection and evaluation process.
RFx from a supplier's perspective: An often underestimated factor for success
In purchasing, RFX processes tend to be viewed primarily through the lens of efficiency and comparability. The supplier’s perspective is often underestimated, even though it has a direct impact on response rates, the quality of quotations and the the subsequent awarding decision. After all, an RFX process is only effective if suppliers, in addition to receiving requests, can also respond to them with little effort.
Low entry barriers for suppliers
The easier it is for suppliers to participate in a request, the more likely they are to submit a quotation. Complex portals, cumbersome registration processes, or unclear requirements, on the other hand, often result in lower participation.
Clear and consistent requirements
Unclear specifications or frequent process changes increase coordination efforts and lead to follow-up questions or incomplete quotations. Clear requirements are crucial not only for purchasers, but also for suppliers.
Process with structured communication
Queries, clarifications, and quote adjustments are a daily occurrence in many RFX processes. Without structured communication, a lack of transparency quickly sets in – on both the purchasing and supplier sides.
Comparable and complete quote submission
To ensure that quotations can be evaluated efficiently, they must be complete, clear, and suitable for evaluation. Inconsistent responses or missing information increase the amount of manual work during evaluation.
How can RFX sourcing be implemented with FUTURA?
Understanding sourcing processes in the SAP context
Why S/4HANA alone Is not enough for sourcing
Background & practical applications on the blog
Utility analysis: When is it useful in supplier evaluation?
Supplier selection in purchasing: 5 criteria – this is how they become effective
RFI in purchasing: How structured market surveys can provide target-oriented clarity
Frequently Asked Questions About RFX Sourcing
What is the difference between an RFI, an RFQ, and an RFP?
RFI, RFQ, and RFP are the three main formats in the RFX process. An RFI (Request for Information) is used to gauge the market — at this stage, the focus is not yet on prices, but on gaining a solid understanding of potential suppliers. An RFQ (Request for Quotation) solicits specific prices and terms when the requirements are already clear. An RFP (Request for Proposal) is used for more complex procurement projects where, in addition to price, concepts, qualifications, or proposed solutions must also be taken into account.
When is a structured RFX process useful?
A structured RFX process is useful whenever multiple suppliers need to be compared, decisions need to be documented, or the procurement value justifies a formal request for proposals. In practice, this primarily applies to strategic material groups, new procurement markets, and more complex services. For standard requirements with known suppliers, a simplified process is often sufficient.
How can RFX sourcing be mapped in SAP?
S/4HANA does not include full RFX functionality out of the box. Simple requests for quotations are possible, but multi-level requests, weighted quote evaluations, or e-auctions require either SAP Ariba or an SAP-native extension solution.The difference lies in the system architecture: Ariba is an external system with an interface to SAP, while SAP-native solutions run directly within the S/4HANA core without requiring additional integration.
What is the meaning of e-auction in the context of RFX?
An e-auction is a dynamic, real-time price negotiation process that complements the RFX process in its final phase. Prerequisites are that the supplier selection has already been completed and that there are several qualified suppliers available to meet the same requirement. E-auctions do not replace a request for proposals — they require a structured pre-selection process.
Consistently integrate RFX sourcing into the SAP ecosystem
SAP is the leading system in many companies – yet purchasing processes often still rely on e-mail, Excel, and various third-party tools. FUTURA, as an SAP-native sourcing solution, closes this gap.
How S/4HANA can be specifically supplemented to achieve end-to-end sourcing processes.
Which approach best meets your needs in the sourcing environment.
What sets FUTURA apart as an SAP-native sourcing solution.