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A request for quotation (RfQ) is a
business Business is the activity of making one's living or making money by producing or buying and selling products (such as goods and services). Simply put, it is "any activity or enterprise entered into for profit." Having a business name A trad ...

business
process in which a company or public entity requests a quote from a
supplierSupplier may refer to: *Manufacturing, Manufacturer, uses tools and labour to make things for sale *Process manufacturing, Processor (manufacturing), converts a product from one form to another *Packaging and labeling, Packager (manufacturing), encl ...
for the purchase of specific
products Product may refer to: Business * Product (business), an item that serves as a solution to a specific consumer problem. * Product (project management), a deliverable or set of deliverables that contribute to a business solution Mathematics * Produc ...
or
services Service may refer to: Activities :''(See the Religion section for religious activities)'' * Administrative service, a required part of the workload of Faculty (academic staff), university faculty * Civil service, the body of employees of a governm ...
. 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 binding agreement that defines and governs the rights and duties between or among its parties Image:'Hip, Hip, Hurrah! Artist Festival at Skagen', by Peder Severin Krøyer (1888) Demisted with DXO PhotoLab Clearview ...

contract
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 specification ...
, 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 ogg-file: 154 kilobytes. A file format is a standard Standard may refer to: Flags * Colours, standards and guidons * Standard (flag), a type of flag used for pe ...
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
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 (a
reverse auction A reverse auction (also known as buyer-determined auction or procurement auction) is a type of auction An auction is usually a process of buying and selling goods In economics Economics () is the social science that studies how peopl ...
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 i ...
s.


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 A target market is a group of customers within a business Business is the activity of making one's living or making money by producing or buying and selling Pr ...

market research
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 Survey may refer to: Statistics and human research * Statistical survey Survey methodology is "the study of survey methods". As a field of applied statistics concentrating on Survey (human research), human-research surveys, survey methodology s ...
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)


See also

*
E-procurement E-procurement (electronic procurement Procurement is the process of finding and agreeing to terms, and acquiring goods, Service (economics), services, or works from an external source, often via a tendering or competitive bidding process. Procur ...

E-procurement
*
Request for Comments A Request for Comments (RFC) is a publication in a series, from the principal technical development and standards-setting bodies for the Internet The Internet (or internet) is the global system of interconnected computer networks tha ...
*
Request for information A request for information (RFI) is a common business Business is the activity of making one's living or making money by producing or buying and selling products (such as goods and services). Simply put, it is "any activity or enterprise ent ...
*
Request for proposal A request for proposal (RFP) is a document that solicits proposal, often made through a bidding Bidding is an offer (often competitive) to set a price tag by an individual or business for a product or service ''or'' a demand that something b ...
*
Request for tender Request may refer to: * a question A question is an utterance which typically functions as a request for information, which is expected to be provided in the form of an answer. Questions can thus be understood as a kind of illocutionary act ...
*
Reverse auction A reverse auction (also known as buyer-determined auction or procurement auction) is a type of auction An auction is usually a process of buying and selling goods In economics Economics () is the social science that studies how peopl ...


References

{{DEFAULTSORT:Request For Quotation Procurement