What is an I.T. RFQ?

What is a request for quotation (RFQ)?

A request for quotation (RFQ) is a process of requesting a quote or bid from suppliers or vendors for specific goods or services. It’s a procurement method used to acquire goods and services at the best price, quality and terms possible [1].

RFQs are typically used for smaller purchases where a more detailed request such as a request for proposal (RFP) is not required. They are often used in industries such as manufacturing, construction, and retail, where obtaining quotes from multiple suppliers can help in identifying the best price for a specific product or service [2].

When a company issues an RFQ, it provides suppliers with a list of specifications, including quality, price, delivery requirements, and quantity [1]. The supplier will then provide a quotation in response to the RFQ. Once all quotes have been received, the purchaser will evaluate each response and determine the best option based on the specific project needs, product or service requirements and other evaluation criteria.

In summary, an RFQ is a procurement method used to source goods and services from multiple suppliers. It helps businesses identify the best options from among multiple quotes, and is typically used for smaller purchases where a detailed RFP is not required, but still requires a list of specifications to be provided to suppliers.

Sources:

  1. https://www.investopedia.com/terms/r/rfq.asp
  2. https://www.nextprocess.com/procurement/what-is-rfq-request-for-quotation/