RFQ — Request for Quotation

A Request for Quotation (RFQ) is a standardized procurement process in which the buying organization solicits comparable price bids from multiple suppliers for a product or service whose technical specification and quantity are already fixed. RFQs are most commonly used for commodity and standard-part purchases, because when the specification is set, the dimensions on which suppliers compete reduce to price, payment terms and delivery lead time. When preparing an RFQ document, an SMB purchasing officer standardizes the material code, drawing, accepted quality level, delivery location, requested date, payment terms and bid validity period; the document is typically sent to three to five pre-qualified suppliers. Returning bids are compared on a fully-loaded basis that includes freight, taxes, customs and insurance — which is why RFQ evaluation feeds directly into #094 Total Cost of Ownership analysis. RFQ results often supply the quantitative price score used in #022 AHP-based supplier evaluation. An RFQ has a narrower scope than an RFI or RFP: it asks for a price, not for methodology, design or partnership terms. E-procurement platforms and supplier portals digitize the RFQ but the underlying process logic is unchanged.