Request for Quotation

A request for quotation is a standard business process whose purpose is to invite suppliers into a bidding process to bid on specific products or services. RFQ generally means the same as invitation for a bid.

An RFQ typically involves more than the price per item. Information like payment terms, quality level per item or 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, 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.

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