Procurement Glossary
Request for quotation: definition, methods and strategic importance in Procurement
November 19, 2025
A request for quotation is a formal procurement process in which companies invite potential suppliers to submit offers for specific products or services. It forms the basis for transparent supplier selection and cost optimization. Find out below what constitutes a request for quotation, which methods are used and how you can use the process strategically.
Key Facts
- Structured procurement process for systematic supplier evaluation
- Legal basis for fair and transparent procurement procedures
- Enables cost comparisons and quality assessments of different providers
- Standardized documentation significantly reduces procurement risks
- Digital tools shorten processing times by up to 40 percent
Contents
Definition: Request for quotation
The request for quotation is a central building block in the procurement process and enables structured supplier communication.
Basic features and components
A request for quotation comprises the detailed specification of requirements, quantities, delivery dates and quality criteria. It serves as a binding basis for the preparation of quotations and subsequent contract negotiations.
- Precise service description with technical specifications
- Commercial framework conditions and delivery terms
- Evaluation criteria for objective bid comparisons
- Legal provisions and compliance requirements
Request for quotation vs. invitation to tender
While requests for proposals can be designed flexibly, public tenders follow strict legal requirements. Requirements management differs considerably in terms of scope and degree of formality.
Importance of the request for quotation in Procurement
Professional requests for quotations create transparency in the procurement market and enable well-founded supplier decisions. They support the procurement strategy through systematic market development and risk minimization.
Methods and procedure for requests for quotation
Structured procedures ensure efficient requests for quotations and optimal results for the company.
Preparation and needs analysis
Systematic needs analysis forms the foundation of successful requests for quotation. Internal stakeholders jointly define requirements and priorities.
- Define technical specifications and quality standards
- Concretize quantity structures and delivery dates
- Define budget and cost framework
Supplier identification and selection
Targeted market analysis identifies suitable suppliers based on performance and strategic fit. Pre-qualification processes ensure supplier suitability.
Digital supply platforms
Modern e-procurement systems automate requests for quotations and enable efficient comparison processes. Digital procurement reduces processing times and significantly improves documentation quality.
Tacto Intelligence
Combines deep procurement knowledge with the most powerful AI agents for strong Procurement.
Key figures for controlling
Systematic performance measurement continuously optimizes requests for quotations and measurably increases procurement efficiency.
Process efficiency key figures
The lead time from request for quotation to supplier selection shows potential for optimization. Benchmark values are 4-6 weeks for standard procurements.
- Time-to-award: Time period until the award is made
- Quotation receipt rate: ratio of quotations requested to quotations received
- Processing costs per request for quotation
Quality indicators
The completeness and comparability of offers received reflects the quality of the request for proposals. Demand rates below 10 percent are considered the target value.
Cost savings and ROI
Savings achieved through structured requests for quotation justify process investments. The return on investment should be at least 3:1 for sustainable procurement optimization.
Risks, dependencies and countermeasures
Professional risk management for requests for quotations protects against costly mistakes and compliance violations.
Incomplete specifications
Poorly defined requirements lead to incomparable offers and subsequent renegotiations. Structured specification management minimizes these risks through standardized processes.
- Create detailed service specifications
- Define clear evaluation criteria
- Conduct regular stakeholder consultations
Supplier dependencies
One-sided supplier structures significantly increase procurement risks. Multiple sourcing strategies diversify risks and strengthen negotiating positions in the long term.
Legal and compliance risks
Violations of public procurement law can lead to costly proceedings. Directive compliance in Procurement ensures legally compliant requests for proposals and protects against liability risks.
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Practical example
A mechanical engineering company needs precision parts for a new product line. The purchasing department creates a structured request for quotation with detailed technical specifications, quality requirements and delivery dates. Five pre-qualified suppliers receive identical documents. After a systematic evaluation based on defined criteria, the most economical supplier that meets both cost benefits and quality standards is selected.
- 15% cost savings through structured comparison process
- Procurement time reduced by 3 weeks
- Improved supplier transparency and risk minimization
Current developments and effects
Technological innovations and changing market conditions are having a lasting impact on the future of requests for quotation.
AI-supported offer evaluation
Artificial intelligence is revolutionizing bid evaluation through automated analysis and comparison processes. AI in Procurement enables more precise supplier evaluations and faster decision-making.
- Automatic plausibility checks and cost analyses
- Predictive analytics for supplier performance
- Intelligent matching algorithms for optimal assignments
Sustainability criteria in requests for proposals
ESG requirements are increasingly being integrated into requests for quotations and have a significant influence on supplier selection. The Supply Chain Act further reinforces this development.
Agile procurement methods
Flexible bid formats enable faster reactions to market changes and support innovative procurement approaches. Agile procurement requires adapted bid structures and evaluation criteria.
Conclusion
Professional requests for quotations form the foundation of successful procurement strategies and enable transparent supplier selection. Structured processes, digital tools and systematic evaluation criteria optimize costs and quality in the long term. The integration of sustainability aspects and AI-supported analysis methods is shaping the future of requests for quotations. Companies that proactively use these developments will secure decisive competitive advantages in the dynamic procurement environment.
FAQ
What is the difference between a request for quotation and an invitation to tender?
Requests for quotations can be designed flexibly and are subject to fewer formal requirements than public tenders. They enable more direct supplier communication and faster decision-making processes, whereas tenders must follow strict legal frameworks.
How many suppliers should be requested?
The optimum number of suppliers for meaningful comparisons is 3-5. Too few suppliers reduce competition and scope for negotiation, while too many can disproportionately increase the evaluation effort and demotivate suppliers.
What legal aspects need to be considered?
Requests for proposals must be non-discriminatory and transparent. Confidentiality agreements protect sensitive information, while clear evaluation criteria create legal certainty and ensure traceability.
How can the quality of services be improved?
Precise specifications, structured evaluation forms and regular supplier training significantly increase the quality of bids. Feedback discussions with unsuccessful bidders promote continuous improvements and strengthen supplier relationships in the long term.
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