A Request for Quotation (RFQ) is a process in which a company solicits selected suppliers and contractors to submit price quotes and bids for specific tasks or projects, particularly when a consistent supply of standard products is required. RFQs streamline the procurement process by inviting bids from a pre-selected group of vendors or contractors, ensuring easy comparison of quotes due to the uniform format.
The RFQ process typically involves six steps:
To ensure clarity and efficiency in the RFQ process, include the following components:
Understanding the differences between a Request for Quotation (RFQ) and a Request for Proposal (RFP) is essential for selecting the appropriate procurement method. RFQs are used when the quantity and specifications of a product are known, making them suitable for standard, recurring needs.
In contrast, RFPs are used for unique, niche projects where the specifications and quantities are not predetermined.
To respond effectively to an RFQ, consider the following strategies:
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