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Request for Quotation

A Request for Quotation (RFQ) is a formal document used in the purchasing process to solicit price quotations from potential suppliers for specific goods or services. The RFQ serves as a way for the buyer to gather information about the cost and terms of potential purchases before making a final decision. Here are the details of what a Request for Quotation typically contains, including key fields:

Request for Quotation (RFQ) Details:

RFQ Number:

  • Description: A unique identifier assigned to each RFQ for tracking and reference purposes.
  • Purpose: Helps in uniquely identifying and referencing the specific RFQ in the procurement system.

Issue Date:

  • Description: The date when the RFQ is issued by the buyer to potential suppliers.
  • Purpose: Provides a timestamp for tracking the timing of the RFQ.

Buyer Information:

Fields:

  • Buyer Name
  • Buyer Contact Information
  • Purpose: Identifies the buyer within the organization responsible for the RFQ.

Delivery Address:

  • Description: The address to which the purchased goods or services are to be delivered.
  • Purpose: Provides clarity on the location where the items are expected to be received.

Billing Address:

  • Description: The address to which invoices related to the purchase should be sent.
  • Purpose: Specifies the location for invoicing and financial transactions.

Delivery Date:

  • Description: The date by which the supplier is expected to deliver the goods or complete the services.
  • Purpose: Sets expectations and timelines for the fulfillment of the potential purchase.

Item Descriptions:

Fields:

  • Item Name/Description
  • Quantity
  • Unit of Measure
  • Purpose: Specifies the details of the goods or services for which price quotations are being requested.

Item Specifications:

  • Description: Detailed specifications or requirements for each item or service listed in the RFQ.
  • Purpose: Provides clear guidelines for potential suppliers regarding the expected quality and characteristics of the items.

Terms and Conditions:

  • Description: Any additional terms, conditions, or special instructions related to the RFQ.
  • Purpose: Clarifies expectations and establishes the framework for suppliers to provide quotations.

RFQ Deadline:

  • Description: The date and time by which suppliers are required to submit their quotations.
  • Purpose: Sets a clear deadline for supplier responses, ensuring timely evaluation and decision-making.

Contact Person:

Fields:

  • Name
  • Email
  • Phone
  • Purpose: Provides the contact information for a person whom potential suppliers can reach out to for clarifications or additional information.

Preferred Supplier (if any):

Fields:

  • Supplier Name
  • Reason for Preference (if specified)
  • Purpose: Indicates if there is a preferred supplier for the requested items and provides reasons for the preference.

Budget Information:

Fields:

  • Budget Code/Account Code
  • Estimated Budget
  • Purpose: Outlines the budgetary constraints or allocations associated with the potential purchase.

Attachment of Specifications/Documents:

  • Description: Space for attaching relevant documents or files related to the RFQ (e.g., specifications, drawings).
  • Purpose: Provides additional information to help potential suppliers understand the requirements.

RFQ Response Format:

  • Description: Specifies the format or template in which suppliers should submit their price quotations.
  • Purpose: Ensures consistency and ease of evaluation when comparing quotations from different suppliers.

Custom Fields:

  • Description: Additional fields that can be customized based on the specific needs and requirements of the organization.
  • Purpose: Allows flexibility in capturing unique information relevant to the RFQ.

RFQ Workflow:

Creation:

The purchasing department creates an RFQ based on the identified need for goods or services.

Review and Approval:

The RFQ undergoes review and approval processes, involving relevant stakeholders.

Supplier Communication:

The RFQ is communicated to potential suppliers, inviting them to submit price quotations.

Supplier Queries/Clarifications:

Potential suppliers may seek clarifications or ask questions regarding the RFQ, and responses are provided by the buyer.

Quotation Submission:

Suppliers submit their price quotations in response to the RFQ before the specified deadline.

Evaluation and Comparison:

The purchasing department evaluates and compares the received quotations based on factors such as price, terms, and specifications.

Supplier Selection:

A supplier is selected based on the evaluation, and further negotiations or discussions may take place.

Award Notification:

The selected supplier is formally notified of the award, and the procurement process moves forward.

Purchase Order Issuance:

A Purchase Order is issued to the selected supplier, formalizing the purchase transaction.

Documentation Retention:

The RFQ, along with related documents, is retained for record-keeping and audit purposes.

A well-structured RFQ process ensures that the buyer receives comprehensive and competitive quotations from potential suppliers, facilitating an informed decision-making process. It is a crucial step in the procurement workflow that allows organizations to obtain the best value for their purchases.