What is the term for a company’s formal request to obtain goods or services from an external vendor?

The term for a company’s formal request to obtain goods or services from an external vendor is "Request for Proposal." This document is issued by organizations to solicit proposals from potential vendors for products or services. The request typically outlines the requirements and criteria for selection, allowing vendors to submit detailed proposals that include pricing, timelines, and strategies to meet the specified needs.

A Request for Proposal (RFP) is particularly valuable when a company seeks comprehensive solutions where vendors can propose innovative approaches. It guides the selection process, ensuring that the organization can evaluate offers based on their fit and overall value. Through a well-structured RFP, companies can facilitate competition among vendors, fostering better pricing and service options tailored to their unique requirements.

Other terms like Purchase Order refer to the actual confirmation of an order after a vendor has been selected, while a Request for Information is typically utilized to gather information about a vendor's capabilities or offerings rather than requesting formal proposals. A Vendor Agreement, on the other hand, is a contract that lays out the terms of business between the company and vendor after selection, but it does not initiate the procurement process. Thus, the definition encapsulated by "Request for Proposal" aligns perfectly with the concept of a formal request aimed at acquiring goods or services