Request for quote
An RFQ, standing for “request for quote,” is a formal document that a company sends out to vendors or service providers. This document asks these selected parties to provide a quote for a specific product or service. RFQs are also sometimes called IFBs, short for invitations for bid.
RFQs are related to, but not the same as, RFPs, which stands for requests for proposal. When a business needs a specific, well-defined product or task, they send out an RFQ. However, when the product or task is non-standard and the exact details are not defined yet, they issue an RFP. In response to an RFP, vendors or service providers have to explain how they will deliver the required product or service. Such detailed explanations are not necessary when responding to an RFQ.
It’s also important to note that businesses don’t make RFQs public. Instead, they send these directly to a chosen group of vendors or service providers. These selected parties are typically experts in the product or service that the business needs.
Example for using ‘RFQ’ in a conversation
Hey, I just got an RFQ from a company!
Nice! What’s an RFQ?
It stands for ‘Request for Quote’. It’s when a business asks suppliers for price quotes for specific items or tasks.
Oh, got it! So, they’re basically asking for prices?
Exactly! They send the RFQ to suppliers who specialize in what they need.
That makes sense. So, it’s different from an RFP?
Yes, an RFQ is for standard items or tasks with known specifications. RFPs are for non-standard things with unknown specifications.
I see. Thanks for explaining!
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