RFQ, an abbreviation for Request for Quotation, is a document that an organization submits to potential suppliers soliciting price quotes for a specified product or service. It is a standard business process whose purpose is to invite suppliers into a bidding process to bid on specific products or services.
An RFQ is typically used when a business needs to purchase a specific product or service and wants to compare various suppliers' prices and terms. This process helps businesses to select the most appropriate supplier based on factors like price, quality, delivery time, and other terms and conditions. An RFQ usually includes a detailed description of the product or service required, the quantity needed, the delivery location, and the deadline for submitting the quotation.
An RFQ (Request for Quotation) is focused on price and used when the product or service required is clearly defined, while an RFP (Request for Proposal) is used when the solution is not clearly defined and suppliers are expected to propose a solution along with the price.
Businesses use RFQs to invite suppliers into a bidding process where they can compare prices and other terms to select the most suitable supplier for their needs.
There are several software solutions that can automate the RFQ process, including SAP Ariba, Zycus, and Coupa Procurement. These tools can streamline the RFQ process, making it easier to compare quotes and select the best supplier.
Using an RFQ can help businesses to save money by ensuring they are getting the best price for a product or service. It can also help to ensure that the product or service meets the business's needs and that the supplier can deliver on time.
An RFQ is an essential tool for businesses looking to purchase products or services. It allows them to compare prices and other terms, ensuring they get the best deal and that the supplier can meet their needs.