What is an RFQ?
An RFQ, or Request for Quotation, is a quick, price-led competition used to buy clearly defined goods or services. The buyer asks suppliers to quote a price against a set specification, and comparison is largely on cost because the requirement is already well defined. RFQs suit straightforward, often lower-value purchases where a full tender would be disproportionate.
Request for Quotation, explained
A Request for Quotation is a lightweight way of running a competition when a buyer knows exactly what it needs. The buyer sets out a clear specification, for example a defined quantity of a standard product or a well-scoped service, and asks a number of suppliers to submit a price quote. Because the requirement is fixed, the main basis for comparison is price, which makes an RFQ quicker and simpler to run than a full tender.
RFQs are typically used for straightforward, often lower-value purchases, such as off-the-shelf goods or routine services, where the effort of a full multi-stage tender would be disproportionate. Even so, the process should still be fair and transparent: inviting several suppliers, giving them the same information, and comparing quotes on a consistent basis all help ensure value for money and a defensible decision.
An RFQ differs from an Invitation to Tender in depth and emphasis. A tender usually involves a fuller proposal evaluated on quality and price together, whereas an RFQ focuses on price against an already-defined specification. Where quality, method or added value matter and need to be assessed, a tender or a quality-and-price evaluation is more appropriate; where the requirement is clear and largely a question of cost, an RFQ is often the proportionate choice.
Key things to know
Price-led
An RFQ compares suppliers mainly on price because the requirement is already clearly defined.
For defined requirements
It suits clearly specified goods or services, such as off-the-shelf products or routine work.
Quick and simple
It is faster and lighter to run than a full multi-stage tender.
Often lower value
RFQs are commonly used for straightforward, lower-value purchases where a full tender would be disproportionate.
Still fair and transparent
Inviting several suppliers and comparing quotes consistently helps ensure value for money.
Not the same as an ITT
A tender evaluates fuller proposals on quality and price, while an RFQ focuses on price against a set specification.
Explore: What is a tender?, What is an ITT?, What is MEAT criteria?, RFQ software.
How eSourcingData helps
eSourcingData makes running RFQs quick and consistent, so even lower-value spend is competitive and recorded.
Run quick quotes
Issue a defined specification to several suppliers and collect quotes in one place.
Compare consistently
Line up quotes side by side for a clear, defensible comparison on price.
Keep records
Maintain an audit trail even for straightforward purchases, supporting value for money.
Scale up when needed
Move from an RFQ to a full tender when quality and added value need assessing.
FAQs
What is an RFQ?
An RFQ, or Request for Quotation, is a quick, price-led competition used to buy clearly defined goods or services. The buyer asks suppliers to quote a price against a set specification, and comparison is largely on cost because the requirement is already well defined. RFQs suit straightforward, often lower-value purchases.
What is the difference between an RFQ and a tender?
An RFQ focuses on price against an already-defined specification, whereas a tender usually involves a fuller proposal evaluated on quality and price together. RFQs are lighter and faster; tenders suit requirements where quality and method need assessing.
When should you use an RFQ?
An RFQ suits straightforward, often lower-value purchases with a clear specification, such as off-the-shelf goods or routine services, where a full multi-stage tender would be disproportionate.
Is an RFQ only about price?
Price is the main basis for comparison because the requirement is already defined, but the process should still be fair and transparent, with several suppliers invited and quotes compared consistently.
Does an RFQ need to be competitive?
To secure value for money and a defensible decision, it is good practice to invite several suppliers, give them the same information, and compare their quotes on a consistent basis.
Run competitive quotes with ease
See how eSourcingData helps UK buyers run RFQs and quotes alongside full tenders. Book a demo or request a pilot.