A request for quotation (RFQ) is a formal solicitation for a supplier to submit an offer to a prospective client, including terms and conditions, prices, and a pricing matrix. The process is straightforward, with restrictions and deadlines, and a boilerplate proposal can be used if the RFP is simple.
Also known simply as a request for quotation, a request for quotation is a formal solicitation for a supplier to submit an offer to a prospective client in hopes of protecting that person, company, or non-profit organization’s business. Sometimes referred to as a request for proposal or RFP, the RFP includes the terms and conditions that would govern the employment relationship, as well as provide prices that the issuer is likely to find desirable. While offers can be somewhat informal, they are often well documented and structured in a way that allows the entity requesting the offers to compare all communications with relative ease.
The process for creating an RFQ is relatively straightforward. The issuing entity identifies which products are needed, includes full details on special applications or required functionality, then invites selected suppliers to submit a formal bid for the company. Usually, there are restrictions on how to submit the offer and a deadline by which the issuer must receive the offer in order to be considered. Failure to comply with the guidelines set by the issuer usually results in automatic exclusion from consideration once the evaluation of the offers received has begun.
At the heart of every RFP is the price for each good or service to be provided under the terms of the contract. Price quotations must be clear, concise and fully relevant to the stated and implied needs of the issuer of the offer. While there is usually space in the response for the supplier to include other data, prices should always be presented on a single matrix, preferably on a single page if possible. It is not uncommon for the array to be structured as an attachment to the main body of the response.
When deciding how to set up the pricing matrix and where to include the data in the body of the RFQ response, it is important to pay close attention to the RFQ sheet or other documents created by the issuer. The pricing matrix should be structured in such a way as to allow the issuer to follow the same general request flow when evaluating responses. If there are specific instructions on where in the answer to place the array, make sure it is done. This helps demonstrate the vendor’s eye for detail, as well as make it easier for the issuer to quickly find the data they want to review during the final vendor selection process.
In situations where the RFP is very simple and does not provide much detail about the structure and placement of information in the response, the respondent may wish to make use of a boilerplate proposal, also known as a proposal template. Many companies maintain cooking plates that can be quickly customized with prices and other background information relevant to a specific RFP. There are also a number of generic proposal templates available for download, some of which are free. However, these generic resources should only be used when the vendor issuing the RFQ does not choose to include specific details on how to structure the response.
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