RFQ (Request for Quote) is a document issued in order to find out how the object of the RFQ would be tackled by different suppliers and for how much. Usually, only the RFQ acronym is used.
What is an RFQ? When is it used?
RFQ is actually just another form of RFP. It is used when we need to get an offer from different suppliers, typically in a situation where the object of the RFQ is a commodity, and it can therefore be assumed that suppliers will compete with each other by means of price per unit or supplementary services.
Therefore, the RFQ issuer will usually require the price quotation. Nevertheless, when the information about the products or services are well known or generally available, the answers to specific questions or descriptions of products or solutions offered are likely not to be required.
Above all, the offeror (supplier) should therefore provide the answer to the question ‘how much’.
What should be included in a basic RFQ?
An RFP should be as detailed as needed so that the contacted suppliers are able to work out a quotation. That is why it should much more detailed than RFI and should contain:
- objectives of the delivery
- contact information
- requirements of the RFQ issuer
- mode of accepting the delivery
- deadline for submitting the bid
- delivery dates
- payment terms and price requirements