Request for Quotation (RFQ)
A Request for Quotation (RFQ) is a procurement document sent to potential suppliers inviting them to submit price quotes for goods or services whose specification is already clearly and precisely defined. Because the requirement is well understood, the RFQ focuses primarily on price (and delivery and terms), making it suited to standardised, off-the-shelf items where the main variable is cost.
The RFQ is one of a family of procurement solicitations: it differs from a Request for Proposal (RFP), used when the buyer needs suppliers to propose solutions to a more complex or open requirement, and a Request for Information (RFI), used to gather market information before deciding how to proceed. Responses to an RFQ are compared on a like-for-like basis to select the best-value supplier. Running structured RFQs — with clear specifications and fair comparison — is a core sourcing technique for getting competitive prices on defined purchases.
When you know exactly what you need, the RFQ is how you make suppliers compete on price — the everyday tool for getting a fair, comparable market price on defined items. Knowing when to use an RFQ versus an RFP or RFI is basic sourcing skill, and running RFQs well directly drives purchasing savings.
When should an RFQ be used?
When the requirement is clearly specified and price is the main variable — typically standardised or off-the-shelf goods and services.
How is an RFQ different from an RFP?
An RFQ asks for prices against a defined specification; an RFP asks suppliers to propose solutions to a more complex or open requirement.