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Request for quotationFrom Wikipedia, the free encyclopedia

(Redirected from Request for Quotation)

A request for quotation (RFQ) is a standard business process whose purpose is to invite suppliers into a biddin

process to bid on specific products or services. RFQ, generally means the same thing as IFB (Invitation For

Bid).[1]

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

contract length are possible to be requested during the bidding process.

To receive correct quotes, RFQs often include the specifications of the items/services to make sure all the supplier

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.

The suppliers have to return the bidding by a set date and time to be considered for an award. Discussions may be

held on the bids (often to clarify technical capabilities or to note errors in a proposal). The bid does not have tomean the end of the bidding. Multiple rounds can follow or even a reverse auction can follow to generate the best

market price.

RFQs are best suited to products and services that are as standardised and as commoditised as possible, as this

makes each suppliers quotes comparable. In practice, many businesses use an RFQ where an RFT or RFI would

be more appropriate.[2]

An RFQ allows different contractors to provide a quotation, among which the best will be selected. It also makes

the potential for competitive bidding a lot higher, since the suppliers could be quite certain that they are not the onl

ones bidding for the products.

Requests for quotations are most commonly used in the business environment but can also be found being applied

to domestic markets.

Contents

1 Industry Specific RFQs

1.1 Market Research

2 See also

3 References

4 Further reading

Industry Specific RFQs

Market Research

http://en.wikipedia.org/wiki/Request_for_Quotation#See_alsohttp://en.wikipedia.org/wiki/Request_for_Quotation#Industry_Specific_RFQshttp://en.wikipedia.org/wiki/Domestic_markethttp://en.wikipedia.org/wiki/Request_for_Tenderhttp://en.wikipedia.org/wiki/Request_for_informationhttp://en.wikipedia.org/wiki/Sales_quotehttp://en.wikipedia.org/wiki/Specificationshttp://en.wikipedia.org/wiki/Invitation_for_bidhttp://en.wikipedia.org/wiki/Request_for_Quotation#cite_note-1http://en.wikipedia.org/wiki/Invitation_for_bidhttp://en.wikipedia.org/wiki/Request_for_Quotation#Further_readinghttp://en.wikipedia.org/wiki/Request_for_Quotation#Referenceshttp://en.wikipedia.org/wiki/Request_for_Quotation#See_alsohttp://en.wikipedia.org/wiki/Request_for_Quotation#Market_Researchhttp://en.wikipedia.org/wiki/Request_for_Quotation#Industry_Specific_RFQshttp://en.wikipedia.org/wiki/Domestic_markethttp://en.wikipedia.org/wiki/Request_for_Quotation#cite_note-2http://en.wikipedia.org/wiki/Request_for_informationhttp://en.wikipedia.org/wiki/Request_for_Tenderhttp://en.wikipedia.org/wiki/Reverse_auctionhttp://en.wikipedia.org/wiki/Specificationshttp://en.wikipedia.org/wiki/Sales_quotehttp://en.wikipedia.org/wiki/Biddinghttp://en.wikipedia.org/wiki/Contracthttp://en.wikipedia.org/wiki/Request_for_Quotation#cite_note-1http://en.wikipedia.org/wiki/Invitation_for_bidhttp://en.wikipedia.org/wiki/Service_(economics)http://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Distributor_(business)http://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/w/index.php?title=Request_for_Quotation&redirect=no

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Here is the list of specifications that are typically included in requests for studies in the market research industry

Type of Study (e.g., Online, P, CLT, Focus Groups)

Survey Lengths (e.g., 1-5mins, 6-10mins, 11-15mins)

Research Methodology (e.g., Conjoint Study, Optimization Study, Discrete Choice Study, Segmentation,

Satisfaction Tracking, etc.)

Subgroups - readable bases necessary for statistically significant reporting

See also

Request for tender

Request for information

Request for proposal

Request for comment

Reverse auction

Optimization (mathematics)

Operations research

E-procurement

References

1. ^ Phillips, Joseph. "Procurement Management in Project Management - Taking Out a Contract"

(http://www.pmhut.com/procurement-management-in-project-management-taking-out-a-contract). PM Hut.

Retrieved 2010-03-24.

2. ^ Article explaining Request for Quote in business | Negotiation Experts

(http://www.negotiations.com/articles/procurement-terms/)

Further reading

Request For Quotation (http://www.negotiations.com/articles/procurement-terms/), compared with RFI,

RFT and RFP. Suggested contexts of when to use each.

Detailed description and template for RFQ (http://www.sourcing4oem.com/index.php?

option=com_content&view=article&id=49:rfq-request-for-quotation-description-and-

template&catid=34:articles&Itemid=55/), Detailed description on what an RFQ should contain and a

template for an RFQ.

Retrieved from "http://en.wikipedia.org/w/index.php?title=Request_for_quotation&oldid=544635484"

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