Request for Quotation

A Request for Quotation (RFQ) is a formal document used in the purchasing process to solicit price quotations from potential suppliers for specific goods or services. The RFQ serves as a way for the buyer to gather information about the cost and terms of potential purchases before making a final decision. Here are the details of what a Request for Quotation typically contains, including key fields:

Request for Quotation (RFQ) Details:

RFQ Number:

• Description: A unique identifier assigned to each RFQ for tracking and reference purposes.
• Purpose: Helps in uniquely identifying and referencing the specific RFQ in the procurement system.

Issue Date:

• Description: The date when the RFQ is issued by the buyer to potential suppliers.
• Purpose: Provides a timestamp for tracking the timing of the RFQ.

Buyer Information:

Fields:

• Buyer Name
• Buyer Contact Information
• Purpose: Identifies the buyer within the organization responsible for the RFQ.

Delivery Address:

• Description: The address to which the purchased goods or services are to be delivered.
• Purpose: Provides clarity on the location where the items are expected to be received.

Billing Address:

• Description: The address to which invoices related to the purchase should be sent.
• Purpose: Specifies the location for invoicing and financial transactions.

Delivery Date:

• Description: The date by which the supplier is expected to deliver the goods or complete the services.
• Purpose: Sets expectations and timelines for the fulfillment of the potential purchase.

Item Descriptions:

Fields:

• Item Name/Description
• Quantity
• Unit of Measure
• Purpose: Specifies the details of the goods or services for which price quotations are being requested.

Item Specifications:

• Description: Detailed specifications or requirements for each item or service listed in the RFQ.
• Purpose: Provides clear guidelines for potential suppliers regarding the expected quality and characteristics of the items.

Terms and Conditions:

• Description: Any additional terms, conditions, or special instructions related to the RFQ.
• Purpose: Clarifies expectations and establishes the framework for suppliers to provide quotations.

RFQ Deadline:

• Description: The date and time by which suppliers are required to submit their quotations.
• Purpose: Sets a clear deadline for supplier responses, ensuring timely evaluation and decision-making.

Contact Person:

Fields:

• Name
• Email
• Phone
• Purpose: Provides the contact information for a person whom potential suppliers can reach out to for clarifications or additional information.

Preferred Supplier (if any):

Fields:

• Supplier Name
• Reason for Preference (if specified)
• Purpose: Indicates if there is a preferred supplier for the requested items and provides reasons for the preference.

Budget Information:

Fields:

• Budget Code/Account Code
• Estimated Budget
• Purpose: Outlines the budgetary constraints or allocations associated with the potential purchase.

Attachment of Specifications/Documents:

• Description: Space for attaching relevant documents or files related to the RFQ (e.g., specifications, drawings).
• Purpose: Provides additional information to help potential suppliers understand the requirements.

RFQ Response Format:

• Description: Specifies the format or template in which suppliers should submit their price quotations.
• Purpose: Ensures consistency and ease of evaluation when comparing quotations from different suppliers.

Custom Fields:

• Description: Additional fields that can be customized based on the specific needs and requirements of the organization.
• Purpose: Allows flexibility in capturing unique information relevant to the RFQ.

RFQ Workflow:

Creation:

The purchasing department creates an RFQ based on the identified need for goods or services.

Review and Approval:

The RFQ undergoes review and approval processes, involving relevant stakeholders.

Supplier Communication:

The RFQ is communicated to potential suppliers, inviting them to submit price quotations.

Supplier Queries/Clarifications:

Potential suppliers may seek clarifications or ask questions regarding the RFQ, and responses are provided by the buyer.

Quotation Submission:

Suppliers submit their price quotations in response to the RFQ before the specified deadline.

Evaluation and Comparison:

The purchasing department evaluates and compares the received quotations based on factors such as price, terms, and specifications.

Supplier Selection:

A supplier is selected based on the evaluation, and further negotiations or discussions may take place.

Award Notification:

The selected supplier is formally notified of the award, and the procurement process moves forward.

Purchase Order Issuance:

A Purchase Order is issued to the selected supplier, formalizing the purchase transaction.

Documentation Retention:

The RFQ, along with related documents, is retained for record-keeping and audit purposes.

A well-structured RFQ process ensures that the buyer receives comprehensive and competitive quotations from potential suppliers, facilitating an informed decision-making process. It is a crucial step in the procurement workflow that allows organizations to obtain the best value for their purchases.