A Request for Quotation [RFQ] is a market enquiry prepared by the buyer and issued to prospective suppliers, typically for lower value or simple acquisitions. The purpose is to invite commercial offers from a number of suppliers in order to secure competition, and to gather information about the supplier’s solutions, their lead time, service support and other dimensions of their value proposition. The selection of a Request for Quotation as opposed to a Request for Tender usually reflects the fact that the value of the proposed acquisition is lower, and a less formal approach is required. For example, the offers may be submitted on the supplier’s own stationery, rather than conform to the buyer’s requirements, and the closing time and date for receipt of offers may be less critical. Requests for Quotation may be issued competitively or non-competitively, depending on the buyer’s governance regime, though many governance regimes require a minimum of three quotations. The key requirements of the RFQ are to ensure that the supplier’s response states their price, delivery or performance timescale, the nature of their value proposition or offer and the period of validity of their offer. This allows the evaluator to select the most appropriate response and adopt a simple and streamlined approach to the acquisition. See also Battle of the Forms, Evaluation, Tender, Invitation to Treat and RFx« Back to Glossary Index
Request for Quotation
Discover the world’s largest Glossary of Procurement terms
With over 800 Procurement specific terms (and growing) you will find everything you need to know or thought you knew about the Procurement function. Our aim is to provide you with a comprehensive list collated from the Comprara Groups hub of training and consulting source materials.The Procurement Glossary has been compiled by industry expert Paul Rogers.