What is the purpose of a Request for Quotation (RFQ)?

The purpose of a Request for Quotation (RFQ) is to provide vendors with the specifications needed for bidding. An RFQ outlines the particular requirements or specifications for the goods or services being sought, allowing potential suppliers to understand exactly what is needed. This clarity ensures that vendors can prepare accurate and competitive bids based on the specific needs expressed in the RFQ, ultimately aiding the buyer in making informed purchasing decisions.

The RFQ process is essential for streamlining procurement, as it helps to gather quotes from various suppliers, facilitating price comparison and ensuring that the buyer receives the best value. Without the specifications provided in an RFQ, vendors might not be able to deliver quotes that meet the buyer's expectations or requirements, potentially leading to discrepancies and misunderstandings regarding the products or services needed.