What is a request for quotation (RFQ)?
A request for quotation (RFQ) is a sourcing document a buyer sends to suppliers to obtain priced offers for clearly defined goods or services. Because the specification is fixed, suppliers respond mainly on price, terms, and delivery, making quotes easy to compare side by side.
A request for quotation (RFQ) is how a buyer asks suppliers, *"Here is exactly what I need — what will you charge?"* It is used when the requirement is well understood and spec-able, so the supplier's response is mostly about price, delivery, and commercial terms rather than design or approach. That makes quotes directly comparable.
What an RFQ includes
- Exact specifications — item descriptions, drawings, standards, and tolerances.
- Quantities and units — e.g. 2,000 units, plus any volume tiers.
- Delivery requirements — location, schedule, and Incoterms.
- Commercial terms — payment terms, validity of the quote, and warranty.
- Response deadline — the date by which quotes must be submitted.
RFQ example
A manufacturer needs 5,000 metres of a specific cable to IS standard. It issues an RFQ to five qualified suppliers. Quotes come back between ₹84 and ₹97 per metre. Because the spec is identical, the buyer can compare on price and lead time directly — or convert the RFQ into a live reverse auction to push the price below ₹84.
RFQ, RFP, or RFI?
Use an RFQ when you know the spec and want prices, an RFP when you need suppliers to propose a solution, and an RFI to gather information first. Our RFQ vs RFP vs RFI guide breaks it down.
Why the RFQ matters
- Comparable bids — a fixed spec means apples-to-apples pricing.
- Faster sourcing — structured responses are quick to evaluate and award.
- Audit-ready — quotes, deadlines, and award rationale are documented.
- Auction-ready — a tight RFQ is the natural input to an e-sourcing event.
The RFQ is a core tool in the sourcing stage of procure-to-pay. Want a head start? Use our RFQ template to standardise every request you send.
Frequently asked questions
What is the difference between an RFQ and an RFP?
An RFQ asks for prices on a clearly defined item where the spec is fixed. An RFP asks suppliers to propose a solution and is scored on approach, capability, and value, not just price. Use an RFQ for commodities and an RFP for complex needs.
Is an RFQ legally binding?
An RFQ itself is a request, not a contract. The supplier's quote is usually a firm offer valid for a stated period, and it becomes binding only when the buyer accepts it and issues a purchase order.
How many suppliers should you send an RFQ to?
Three to six pre-qualified suppliers is a common range — enough for genuine price competition without overloading evaluation. Public buyers may have minimum-quote rules set by policy.