Request for Quotation (RFQ)

A Request for Quotation (RFQ) is a sourcing document used when the buyer has a fixed specification and wants competitive price and lead-time quotes from qualified suppliers. Unlike an RFP, an RFQ does not ask suppliers to propose a solution; the solution is already defined and the question is who can supply it best on price, delivery, and terms.

How it works

RFQs are common for direct materials, standard components, and well-defined services. They assume the buyer has already qualified the supplier pool, often through a prior RFI or onboarding process.

• Provide a complete specification, drawing, or bill of materials

• State quantity, delivery location, Incoterms, and required lead time

• Specify required certifications and quality standards

• Request a structured price breakdown: unit price, tooling, freight, taxes

• Set a clear deadline and award criteria

Why it matters in procurement

The RFQ is the workhorse instrument of operational procurement. Its effectiveness depends on two upstream conditions: a complete and unambiguous specification, and a pre-qualified supplier pool. Without those, the RFQ either returns non-comparable quotes or awards to a supplier who cannot perform. AI-vetted shortlists and clean engineering specifications are the two highest-leverage investments to improve RFQ outcomes, and platforms like Speya (formerly Find My Factory) exist to compress that pre-qualification step.