What is RFQ (Request for Quotation)
The objective of an RFQ or Request for Quote is to ask different suppliers for the price of a specific service or product. It is used when the requesting company is very clear not only about the need to be covered but also about the solution - product or service - that it wishes to hire. In this case, the supplier is asked to give a budget for a specific product or service, making it easy to compare the proposals presented by the supplier since theoretically they are budgeting for exactly the same thing.
In this case, the information that an RFQ must contain is:
- Information about the applicant company:
Explanation about the activity of the company
Contact details of the person who will manage the process - Specific request on the price of a product or service offered by the supplier company, specifying in detail what this product or service should include.
- Request to sign a confidentiality agreement if necessary
- Deadlines for the presentation of the budget and next steps of the project:
If the hiring decision is to be made only with the presentation of the RFQ, it is important to indicate the criteria that will be taken into account when deciding. If the RFQ is part of a larger process, it is important to point it out at this point.
An RFQ focuses on the economic aspect of the proposal, without giving options to the provider to offer one service or another depending on the needs raised since what is proposed is to put a price on a very specific request. An RFP process is a broader process in which the needs of the company are detailed and not only a budget is requested, but also more flexibility is given to the supplier to present the best solution to the needs raised. In the resolution of an RFP, more factors come into play apart from the price: quality of the proposal, coverage of all the needs raised, etc.