A Request for Proposal (RFP) is a formal document issued by organizations to invite vendors, service providers, or suppliers to submit competitive bids for a specific project, service, or solution. It outlines business requirements, project scope, evaluation criteria, budget constraints, and expected deliverables, ensuring that companies receive well-structured and competitive proposals from potential partners.

Industries like manufacturing, retail, logistics, e-commerce, and facility management services (FMS) frequently use RFPs to procure workforce management solutions, payroll services, compliance management, and other HR-related services. A well-structured RFP process helps organizations compare vendors, negotiate better terms, ensure transparency, and select the most suitable service provider. Companies leverage procurement software and vendor management platforms to automate RFP creation, proposal evaluation, and contract finalization, leading to better decision-making and cost efficiency.