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RFQ or Request For Quotation, is the term which commonly is used by purchasers when inviting suppliers and subcontractors to bid on projects or products. Normally the RFQ is a document containing all necessary information for the the suppliers to give their quote. The document makes it obvious that several suppliers are invited to bid on the products and in that way create potential for competitive bids.
RFQs are espacially suitable for products that are standardized or produced in repetitive quanities.
It is wise to include all the technical and commercial demands that is possible in the document. The reasons for this are many, such as:
- Makes the chance for accurate quotes higher.
- Demands put up in the RFQ can be used as legally binding later on.
- Putting up commercial demands after the first quotes are recieved are usually more difficult than when the suppliers know they are not the only ones bidding on the products or services.
An RFQ can be preceded by an RFI (Request For Information) or RFP (Request For Proposal). And one RFQ does not have mean the end of the bidding process. A not so uncommon progress is that a couple of suppliers are chosen for a second bid (new RFQ on the same products).
An RFQ should at least contain the following:
- Contact persons (for commercial and technical questions)
- Partnumbers and description
- Quantities to be bought (yearly and per order)
- Drawings and other specifications
- Quality demands (such as PPAP or warranty period requirements)
- Delivery address
- Delivery terms (such as INCO terms)
- Payment terms
- Binding period of the quote
- Other terms (purchase agreement/contract)
- Deadline for quotations
- Level of requested price transparency
Download free RFQ template
This RFQ template assist you when putting together the RFQ. It is a form that includes instructions and sample information. It will hopefully save you time and make sure that you do not forget anything. If you are uncertain of how to write, need an example or want to know what an RFQ is, then download and take a look. It is free!
|Click to download free template of a Request For Quotation (RFQ)|
Do you want to organize your RFQ process? Try sending your RFQs from www.RFQorganizer.com. A web-based system for sending RFQs as well as receiving and comparing quotes.