Request for Quotation

A Request for Quotation (RFQ) represents a business procedure in which a company asks selected suppliers to provide price estimates for a defined product or service. This document is most useful when the buyer has precise specifications and quantities in mind, with price being the main criterion for evaluation and choice.

The RFQ process is fundamental to effective procurement, ensuring operational reliability. It enables businesses to obtain a steady supply of products that adhere to established standards. By inviting competitive price estimates, companies can efficiently manage expenses and maintain oversight of their supply chain.

This approach also greatly enhances supply chain efficiency. RFQs simplify the sourcing process by minimizing the time and administrative workload involved in procuring goods. This focused strategy ensures that companies swiftly receive high-quality products, facilitating ongoing and reliable business operations.

An effectively organized RFQ is vital for obtaining precise and comparable quotes from suppliers. It should include all essential information to avoid confusion. Key elements usually consist of the following:

Although both RFQs and RFPs are tools for procurement, they serve different functions depending on the complexity and needs of the project.