Request for Quotation (RFQ)
A Request for Quotation (RFQ) is a procurement document asking suppliers to provide specific pricing for clearly defined goods or services. Unlike an RFP, it assumes the requirements are fixed and focuses primarily on cost comparison.
What is a Request for Quotation (RFQ)?
A Request for Quotation (RFQ) is a procurement document that asks suppliers to provide pricing for clearly specified goods or services. Because the requirements are already well defined, the supplier's main task is to quote a price and terms rather than propose an approach.
An RFQ assumes the buyer knows exactly what it needs and how much. The emphasis is on cost comparison among suppliers offering essentially the same defined item.
How does an RFQ differ from an RFP?
The key distinction is the degree of openness in the requirement. A Request for Proposal invites vendors to shape a solution when the best path is still uncertain, while a Request for Quotation simply seeks competitive pricing for a fixed, well-understood specification.
In practice, organizations use an RFQ for routine, commoditized purchases where price and delivery terms are the deciding factors. It is a faster, narrower process suited to buying defined supplies rather than evaluating complex services.
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