What is RFP (Request for Proposal)?

Definition

RFP (Request for Proposal) is a formal document used by shippers to request detailed business and service proposals from transportation providers or logistics companies.

Unlike an RFQ, which focuses primarily on pricing, an RFP evaluates service quality, operational capability, technology, innovation, and overall value.

Purpose of RFP

• Evaluate logistics service capabilities

• Compare transportation solutions

• Improve procurement transparency

• Select strategic logistics partners

• Support long-term transportation contracts

Typical RFP Information

An RFP may include:

• Transportation requirements

• Service scope

• Shipment volume

• Performance expectations

• Technology requirements

• Pricing structure

• Contract duration

RFP Process

1. The shipper prepares the RFP.

2. Logistics providers receive the invitation.

3. Providers submit proposals.

4. The shipper evaluates pricing, service, and capabilities.

5. One or more providers are awarded the business.

Difference Between RFQ and RFP

RFQ focuses primarily on pricing and quotations.

RFP evaluates both pricing and service capabilities to identify the best overall logistics solution.

Related Terms

• RFQ (Request for Quotation)

• Transportation Lane

• Carrier

• Bidder

• Award

• Freight Benchmarking