RFQ stands for Request For Quotation. It is a document used in business and procurement processes to solicit price quotes, bids, or proposals from suppliers or vendors for the purchase of goods or services. An RFQ is typically sent out by a company or organization looking to acquire specific products or services at competitive prices.
The RFQ acts as a formal invitation for suppliers to submit their quotations or proposals, outlining their offered terms, conditions, and pricing details. It contains detailed information about the required products or services, including specifications, quantities, and delivery requirements. Additionally, it may include any specific terms and conditions that the company expects the suppliers to comply with.
Upon receiving the RFQ, interested suppliers typically evaluate the requirements and prepare a quotation that consists of the price, estimated delivery time, payment terms, and other relevant information. Suppliers may also include additional details such as warranties, discounts, or special offers to make their quotation more appealing.
The purpose of an RFQ is to invite potential suppliers to compete and provide the company with competitive pricing and the best terms for the required products or services. This allows the company to evaluate and compare different quotations, ensuring that they secure the most cost-effective and favorable offer.
