RFQ (Request For Quote)

An RFQ (Request for Quote) in procurement is a formal process used to solicit price quotes from vendors or suppliers for specific, clearly defined products or services. It is typically used when the buyer knows exactly what they need and wants to compare pricing and terms from multiple vendors.

Key Characteristics of an RFQ:

• Price-Focused: The primary goal is to obtain competitive pricing.
• Specific Requirements: The goods or services are well-defined, with detailed specifications, quantities, and delivery requirements.
• Short-Term Transactions: Often used for one-time purchases or straightforward procurement needs.
• Comparison Tool: Allows for easy comparison of price, delivery time, and payment terms across suppliers.

When to Use an RFQ:

• When the specifications are clear and unambiguous.
• When price is the main or only deciding factor.
• For commodities, standard products, or repeat purchases.