What is an RFQ (Request for Quotation)?

A request for quotation (RFQ) is a procurement document in which a buyer describes exactly what is needed — part numbers, technical specifications, quantities, delivery location and dates — and invites suppliers to respond with a price and a lead time. The defining characteristic is that the scope is already settled. The supplier is not asked to propose a solution; the supplier is asked what it costs to deliver the one described.

That is why quotations arriving from an RFQ are comparable. Every supplier prices the same list of positions on the same commercial terms, so differences in the answers reflect differences in the suppliers rather than differences in how each one interpreted the requirement.

The quality of the quotations you receive is set almost entirely by the quality of the request. A workable industrial RFQ contains:

• Line items with identifiers. One position per article, with the manufacturer part number, drawing number or standard designation where one exists — for example a bearing designation, a DIN/ISO reference, or a customer drawing revision.
• Quantities and units. Pieces, sets, metres, kilograms, pallets. State whether the quantity is a one-off, a call order or an annual volume, because that changes the price bracket.
• Technical specification. Material and grade, tolerances, surface treatment, hardness, pressure or voltage ratings, protection class, and any required test or inspection documentation.
• Acceptable alternatives. Whether an equivalent manufacturer is acceptable, or whether the specified brand is mandatory for spare-part compatibility.
• Delivery terms. Delivery location and the Incoterm (EXW, FCA, DAP, DDP …). Without an Incoterm the prices you receive are not comparable, because freight, duty and insurance may or may not be inside them.
• Required date and lead time. The date you need the goods on site, and whether partial deliveries are acceptable.
• Commercial frame. Quotation currency, payment terms, required quotation validity, and whether partial offers covering only some positions are allowed.
• Quotation deadline. A single, explicit date after which offers are no longer accepted.
• Attachments. Drawings, datasheets, photographs of the installed part, nameplate images, or a bill of materials.

Use an RFQ when you can describe the deliverable well enough that two different suppliers would build or supply the same thing. Typical cases: restocking wear parts for a production line, buying MRO consumables, ordering CNC-machined or fabricated parts against a drawing, replacing a hydraulic power unit with defined ratings, or buying a listed piece of equipment.

An RFQ is the wrong instrument when the scope is still open — when you know the problem but not the solution. Retrofitting a packaging line, integrating a new automation cell, or commissioning an engineering study are cases where suppliers should propose an approach first. There, a request for proposal is appropriate, and a request for information can precede it while you map the market.

1. Prepare. Assemble the position list, confirm quantities with maintenance or production, attach drawings and decide the commercial frame.
2. Publish or send. Issue the same document to every invited supplier, or publish it so qualified suppliers can find it. Everyone must receive identical information.
3. Clarify. Answer supplier questions during the open period. If an answer changes the scope, it has to reach all participants, not only the supplier who asked.
4. Compare. After the deadline, evaluate on the landed total — unit price, freight terms, duty, packaging, lead time, warranty and payment terms — not on the headline number.
5. Award and document. Award per position or in full, record why, and inform the suppliers who were not selected. That record is what makes the decision auditable later.

• No Incoterm. One supplier quotes ex works, another delivered — the difference can exceed the price difference between them.
• Free-text scope instead of positions. "Various seals and bearings for the mixer" cannot be priced consistently.
• Missing revision on drawings. Suppliers quoting against different revisions produce prices that cannot be compared, and often the wrong part.
• Silent tolerance on alternatives. If you do not say whether equivalents are acceptable, some suppliers will offer them and some will not.
• No quotation validity. On materials with volatile pricing, an offer without a stated validity period is not a commitment.
• An unrealistic deadline. Suppliers who must query their own sub-suppliers need working days, not hours; too short a window simply reduces the number of answers.

Spare parts. Identification dominates: part number, machine type, serial number and a nameplate photo usually matter more than a long specification.

MRO supplies. Volume and repeatability dominate. State annual quantities and call-off behaviour so suppliers can price a framework rather than a single order.

Machinery and industrial equipment. Ratings, interfaces, footprint, utilities, documentation and commissioning scope belong in the request; so does the question of who performs the installation.

Manufacturing services. Drawing plus material, tolerance, surface finish, inspection requirement and batch size. Say whether tooling is existing or has to be produced.

What does RFQ stand for? Request for quotation — a buyer's formal request for priced offers against a defined scope.

Is an RFQ the same as a quotation? No. The RFQ is the buyer's request; the quotation is the supplier's answer to it.

Who issues an RFQ? The buying organisation — typically procurement, sometimes together with maintenance or engineering, who own the technical content.

Is an RFQ binding? Issuing an RFQ does not normally oblige a buyer to award. A supplier's quotation is binding for its stated validity period unless the supplier says otherwise.

How long should an RFQ stay open? Long enough for suppliers to check availability with their own sources. For catalogue items a few working days can be enough; for fabricated parts or equipment, plan in weeks.