What is an RFQ (Request for Quotation)?

A Request for Quotation (RFQ) is a standard business process whose purpose is to invite suppliers into a bidding process to bid on specific products or services. It is commonly used in procurement to get the best possible prices from vendors. An RFQ typically includes detailed specifications of the products or services required, quantities, delivery timelines, and payment terms. Suppliers then respond with their pricing and terms.

Use an RFQ when you need to purchase high-volume items, when pricing is the primary decision factor, when specifications are well-defined, when you need multiple competitive bids, or when compliance requires documented procurement. RFQs are most effective for standardised products where price is the main differentiator.

Step 1: Define requirements and specifications clearly.
Step 2: Identify and shortlist potential suppliers.
Step 3: Prepare and distribute the RFQ document.
Step 4: Receive and evaluate supplier responses.
Step 5: Negotiate terms and select the best supplier.
Step 6: Issue a purchase order to the winning supplier.

1. Be specific about requirements and include all technical specifications.
2. Set clear deadlines and communicate them to all suppliers.
3. Send the RFQ to at least 3 suppliers for competitive pricing.
4. Use standardised evaluation criteria for fair comparison.
5. Document everything for audit trail and compliance.
6. Follow up with suppliers who have not responded.

Download our professionally designed RFQ templates in PDF, Excel, and Word formats. All templates are bilingual (English/Arabic) and ready to use immediately. Customise them with your company logo and branding.