A request for quotation (RfQ) is a

business Business is the practice of making one's living or making money by producing or buying and selling products (such as goods and services). It is also "any activity or enterprise entered into for profit." Having a business name does not separ ...

process in which a company or public entity requests a quote from a supplier for the purchase of specific products or services. RfQ generally means the same thing as Call for bids (CfB) and Invitation for bid (IfB). An RfQ typically involves more than the price per item. Information like payment terms, quality level per item or

contract A contract is a legally enforceable agreement between two or more parties that creates, defines, and governs mutual rights and obligations between them. A contract typically involves the transfer of goods, services, money, or a promise to tr ...

length may be requested during the bidding process. To receive correct quotes, RfQs often include the specifications of the items/services to make sure all the suppliers are bidding on the same item/service. Logically, the more detailed the

specifications A specification often refers to a set of documented requirements to be satisfied by a material, design, product, or service. A specification is often a type of technical standard. There are different types of technical or engineering specificat ...

, the more accurate the quote will be and comparable to the other suppliers. Another reason for being detailed in sending out an RfQ is that the specifications could be used as legal binding documentation for the suppliers. The ubiquitous availability of the Internet has made many government agencies turn either to state-run or vendor operated websites which provide listings of RfQs as well as RfIs and RfPs. Many allow vendors to sign up at no charge to receive e-mails of requests either generally or for specific categories of product or service for which there is an interest. In some cases, the entire process is done on-line with responses as scanned documents or

PDF Portable Document Format (PDF), standardized as ISO 32000, is a file format developed by Adobe in 1992 to present documents, including text formatting and images, in a manner independent of application software, hardware, and operating systems. ...

files uploaded to the server; in other cases, or for legal reasons, a response must be sent in hard copy form and/or on CD/DVD disc or flash drive by mail or delivery service. The suppliers have to return the bidding by a set date and time to be considered for an award. Discussions may be held on the bids (often to clarify technical capabilities or to note errors in a proposal). The bid does not have to mean the end of the bidding; multiple rounds can follow. After the RfQ process, professional procurement organizations have to compare the quotations, and try to get the best price for the job (by negotiations, or by conducting an

e-auction An online auction (also electronic auction, e-auction, virtual auction, or eAuction) is an auction held over the internet and accessed by internet connected devices. Similar to in-person auctions, online auctions come in a variety of types, with d ...

reverse auction A reverse auction (also known as buyer-determined auction or procurement auction) is a type of auction in which the traditional roles of buyer and seller are reversed. Thus, there is one buyer and many potential sellers. In an ordinary auction al ...

or a ticker auction). Aim is to determine the fair market value of the goods or services and thus generate savings for the company. RfQs are best suited to products and services that are as standardized and as commoditized as possible, as this makes each supplier's quote comparable. In practice, many businesses use an RfQ where an RfT or RfI would be more appropriate. Suggested contexts of when to use each. An RfQ allows different contractors to provide a quotation, among which the best will be selected. It also makes the potential for competitive bidding a lot higher, since the suppliers could be quite certain that they are not the only ones bidding for the products. Requests for quotations are most commonly used in the business environment but can also be found being applied to

domestic market A domestic market, also referred to as an internal market or domestic trading, is the supply and demand of goods, services, and securities within a single country. In domestic trading, a firm faces only one set of competitive, economic, and market ...

Industry specific RFQs

Market research

Here is the list of specifications that are typically included in requests for studies in the

market research Market research is an organized effort to gather information about target markets and customers: know about them, starting with who they are. It is an important component of business strategy and a major factor in maintaining competitiveness. Ma ...

industry: * Research Methodology (e.g., Conjoint Study, Discrete Choice Study, Optimization Study, Satisfaction Tracking, Segmentation, etc.) * Subgroups – readable bases necessary for statistically significant reporting * Survey Length (e.g., 1–5 mins, 6–10 mins, 11–15 mins) * Type of material (e.g., commodity) * Type of study (e.g., Online, P, CLT, Focus Groups)

References

{{DEFAULTSORT:Request For Quotation Procurement

Industry specific RFQs

Market research

See also

References