Request for Quotation (RFQ)

What Is a Request for Quotation (RFQ)?

A Request for Quotation (RFQ) is a document a buyer sends to suppliers to request specific pricing for clearly defined goods or services, used when requirements are well understood and the primary decision factor is price.

How Does an RFQ Work?

The buyer specifies exact quantities, specifications, and delivery requirements, and suppliers respond with a quoted price for meeting those exact terms. Because the requirements are already fixed, RFQ responses are usually easy to compare directly against each other on price.

RFQ vs. RFP

An RFQ is used when the buyer already knows exactly what they need and just wants competitive pricing. An RFP is used when the buyer needs suppliers to propose an approach or solution, not just a price, because the requirements are more open-ended or complex.

Why an RFQ Matters

RFQs are the standard tool for competitive freight rate sourcing and other well-defined procurement needs, giving buyers a straightforward, apples-to-apples basis for comparing supplier pricing on identical requirements.