A Request for Quotation (RFQ) is a document inviting bids from potential suppliers for standard products or services, with detailed specifications, delivery dates, payment terms, quality assurance, and a deadline for submission. RFQs benefit both parties by increasing buying power and competition. Templates and standardized forms are available online. RFQs are one of four “request for” documents used in commercial purchasing, including RFPs, RFTs, and RFIs.
A Request for Quotation (RFQ) is an invitation to submit bids, usually sent to several potential suppliers, asking for firm prices on relatively standard or commodity type products or services. Such requests for competitive bids often require respondents to provide more than just estimated costs. Organizations initiating a request for quotation usually provide detailed specifications for the item in question and ask bidders to confirm that their product or service meets or exceeds everything specified. Typically, applicants also require commitments on delivery dates, payment terms, quality assurance, and the time the quoted price will be in effect. There is virtually always a deadline for submitting an RFQ document.
The request for quotation process benefits both requesting and bidding organizations. Applicant companies increase their buying power by giving themselves the opportunity to negotiate with multiple vendor candidates. They also increase the likelihood of getting the best price because all sellers know they are in a bidding game and are likely to offer highly competitive prices. Potential suppliers often relish the opportunity to compete for business on a level playing field.
The Internet is often filled with templates for developing effective RFQs and RFQ responses. Entering terms such as “request for quotation” or “RFQ” followed by additional words such as “sample”, “sample”, “response” or “sample response” into an Internet search engine should return a wide range of examples for review. Standardized templates for developing and responding to a request for quotation are also available online, often at a modest price. Internet searchers can easily find them by adding “template” or “templates” to whatever they’re searching for to help narrow their search.
The request for quotation is one of four “request for” documents used frequently in the commercial purchasing process. Two others are also used for competitive bidding – the request for proposal (RFP) and the request for proposal (RFT). RFPs, the closest relatives of RFQs, are usually issued for very complex products or services and require that a price quote be supplemented with a written proposal detailing how the product or service will meet the organization’s specific needs. The RFT is a government agency’s public procurement announcement open to all suppliers for specifically defined products or services. The fourth document in the “request for” category is the request for information (RFI) – a document that does not solicit bids but only seeks information from potential suppliers to qualify them for inclusion in the RFQ or RFP bid lists or to alert they might be receiving an RFQ or RFP.
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