Request for Quotation( RFQ ): is a document that a client organisation submits to the potential vendors or suppliers requesting for quotations for a product based on their requirement.
The goal is to be able to compare the vendor or supplier offerings on the requirement.
If the company is clear about the requirement then it can present with ” Request for Quotation ” to the shortlisted supplier with out RFP.
Request for Quotation is not just entitled to requesting for the price offering on an Item or product or service.
Quotation contains detailed price information about the desired and expected product with the payment terms etc.,
Request for Quotation allows the buying organisation to request for quotations from shortlisted potential organisations before purchasing any product or service.
And the above is all done only when a supplier or vendor replies with a valid quote and the next step would be may be an internal discussion ( between the company buying and company offering ), negotiation followed by acceptance or rejection of vendors. RFP comes in picture after this.
Request for quotation contains:
a. Pricing Requirement
b. Business Development Model
c. Project Management Plan
d. Payment Methods
e. Project Duration