A request for quotation is a structured invitation for qualified suppliers to submit prices and defined commercial information for a sufficiently clear specification, quantity, and delivery need. It is most useful when offers can be compared on a consistent basis. An RFQ can still include quality, service, risk, and compliance requirements; lowest quoted price need not determine the award.
In plain English
It asks suppliers for comparable prices and terms for a clearly specified need.
Illustrative example
At Northstar Industrial Systems, procurement requests unit price, freight, lead time, warranty, and validity for a defined set of replacement motors.
- Related terms
- Request for proposal; RFx; Bid comparison; Award scenario
- Lifecycle stages
- Source; Award
- Stakeholders
- Procurement; Supplier; Finance; Operations