Definition
A request for quotation (RFQ) is a document a buyer sends to suppliers asking them to price specific items, quantities and terms.
What is a request for quotation used for?
Sending the same RFQ to several suppliers makes their offers comparable: same items, same quantities, same delivery point. A good RFQ lists item codes and specifications, quantities and units, and the required delivery date and place, and asks for unit prices, validity, lead time and payment terms. It should say clearly that it isn’t an order.
Example: a contractor sends an RFQ for 2,000 m of cable to four suppliers, asking for prices excluding tax, valid for 30 days, then lines the replies up in a quote comparison.
Customers send RFQs to you too; on the sales side, your reply is a quotation.