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!

Download free template of a Request For Quotation (RFQ) >>

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Steve  - Thanks!   |218.18.235.xxx |2009-01-18 15:18:29 Thanks for the info and template. Very useful! Reply | Quote 19   3

PJ  - Thanks   |203.146.154.xxx |2009-03-16 11:33:01 It's useful! Reply | Quote 6   1

zaki  - CTO   |86.132.249.xxx |2009-05-07 07:31:37 starting software RFQ process Reply | Quote 0   3

Lisa  - Purchasing Manager   |65.123.237.xxx |2009-05-21 16:18:36 I found the information useful. Can you tell me what PPAP stands for? Thanks. Reply | Quote 3   0

Admin  - PPAP   |134.37.0.xxx |2009-05-25 18:53:35 Lisa, PPAP stands for Production Part Approval Process. This is a quality assurance method for components and is mainly used within the automotive industry. But it is actually getting more and more popular among other big OEMs aswell. Reply | Quote 2   1

Laurel Barney  - Owner   |83.185.11.xxx |2009-08-14 22:13:04 I found the information very useful. Thank you very much. Reply | Quote 2   1

Rachel  - QA/Regulatory Specialist   |70.61.46.xxx |2009-09-24 14:02:40 Very Useful! - Thank You! Reply | Quote 0   0

Rachel  - QA / Regulatory Specialist   |70.61.46.xxx |2009-09-24 14:03:42 Very Useful! Thank You! Reply | Quote 0   0

Sheer Mohammed.  - Byer   |212.72.24.xxx |2009-09-30 07:27:34 Very good, we will use the information provided in enhancing our current RFQ process, this will definitely improve the situation........Thanks Reply | Quote 0   3

David Minick  - Sr. Sourcing Mgr   |76.186.51.xxx |2009-10-30 17:54:23 A basic format helpful to start the RFQ learning curve, but there is a lot more needed in a quote by the customer than just the cost. There is also a lot more to starting the RFQ process than an RFQ template. Besides the other elements necessary to compare multiple quotes, there is information needed to manage the entire process of the RFQ/Quote, Quote acceptance, and quote/contract execution. Remmeber, a quote is a legal offer, that once accepted creates a contract between the two entities. Reply | Quote 5   0

Fredy  - ICT Coordinator   |125.163.19.xxx |2010-01-15 01:54:38 Thank you very much for this useful and very helpful template for us as a starter Reply | Quote 1   0

Patrick Cassidy   |86.47.48.xxx |2010-05-27 10:53:13 Thank you for a most useful template. Badly needed. Patrick Reply | Quote 0   0

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