A request for quotation, or RFQ, is a document a buyer sends to suppliers to obtain comparable prices and commercial terms for clearly defined goods or services. It works best when the specifications, quantities, delivery requirements, evaluation basis and response deadline are precise enough for each supplier to price the same requirement.
Use an RFQ only when the requirement is stable
An RFQ works when the buyer already knows what it needs and wants suppliers to compete on measurable terms. Send it too early and suppliers will price different assumptions. Use an RFI while the market or requirement is still being explored, and an RFP when suppliers need to design the solution.
| Request | Question being answered | Best fit |
|---|---|---|
| RFI | What solutions and suppliers exist? | Market discovery and requirement shaping |
| RFQ | What will this defined requirement cost and on what terms? | Comparable goods or clearly specified services |
| RFP | How would each supplier solve the requirement? | Complex services, systems or outcomes |
Give every supplier the same pricing basis
- Scope, specifications, drawings or service requirements
- Quantities, units and allowed alternatives
- Delivery locations, dates and Incoterms where relevant
- Required price breakdown, taxes, freight and currency
- Payment terms, warranty and service expectations
- Supplier qualification documents
- Submission format, deadline and contact for questions
- Evaluation criteria and the buyer's right to clarify or reject offers
Run one controlled supplier process
- Confirm the internal requirement and budget authority.
- Choose qualified suppliers and issue the same RFQ pack to each.
- Record questions and share material clarifications consistently.
- Close submissions at the stated deadline.
- Normalize units, taxes, freight, lead times and exceptions.
- Evaluate against the disclosed criteria and document the award.
Illustrative example: printed packaging
A food manufacturer requests a defined run of printed cartons for delivery to its plants. The RFQ fixes the board grade, dimensions, print colours, delivery split and inspection requirement. Suppliers must show unit price, tooling, VAT, freight, lead time and payment terms separately. A low headline price can then be tested against setup charges and delivery assumptions.
How an RFQ comparison breaks
Vague specifications invite suppliers to price different assumptions. A second common problem is comparing totals without normalizing currency, unit of measure, tax, freight and exceptions. Buyers should also document late changes: a private clarification given to one bidder can undermine a fair comparison.
For repeat sourcing events, Quotable RFQ software keeps the request, clarifications and supplier responses together. The award can continue into procurement, while the RFQ savings calculator documents the comparison basis.
