Procurement Glossary
Request for Quote (RFQ): Definition and application in Procurement
November 19, 2025
A Request for Quote (RFQ) is a structured procedure for obtaining price quotations from suppliers for specific products or services. In professional Procurement , the RFQ enables a systematic price comparison and forms the basis for well-founded procurement decisions. Find out below what characterizes an RFQ, how the process works and what strategic advantages it offers.
Key Facts
- RFQ is a standardized procedure for requesting prices from several suppliers
- Focus is on price determination for already defined specifications
- Enables transparent cost comparisons and negotiation bases
- Differs from RFI and RFP in its specific price focus
- Digital RFQ platforms automate the process and increase efficiency
Contents
What are RFQs? Definition in the procurement process
A request for quote is a formalized inquiry procedure in which buyers obtain concrete price offers for defined services from selected suppliers.
Core elements of an RFQ
A professional RFQ includes precise specifications, quantities and delivery conditions. The service description forms the basis for comparable offers.
- Detailed product specifications or service requirements
- Requested quantities and delivery dates
- Technical standards and quality criteria
- Commercial framework conditions
RFQ vs. other request procedures
In contrast to the Request for Information, the RFQ is aimed directly at price determination. The Request for Proposal, on the other hand, calls for comprehensive solution concepts.
Importance of RFQ in Procurement
RFQs create market transparency and enable data-based decisions. They support tender management through structured price comparisons and form the basis for successful negotiations.
Process steps and responsibilities
The RFQ process follows a structured sequence from requirements analysis to supplier selection. Clear responsibilities ensure an efficient process.
Preparation and supplier selection
The creation of a supplier shortlist is based on defined suitability criteria. A detailed catalog of requirements ensures that all relevant aspects are covered.
- Market analysis and supplier identification
- Qualification check of potential bidders
- Creation of the RFQ documentation
Implementation and communication
Bidder communication is standardized via defined channels. Bidder questions are answered in a clarification round to ensure equal treatment.
Evaluation and decision
The systematic tender review is based on predefined criteria. An evaluation matrix supports the objective assessment of the bids received.
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Important KPIs and targets
Key figures make it possible to measure RFQ efficiency and identify potential for improvement. Systematic monitoring supports continuous process optimization.
Process KPIs
The lead time from RFQ creation to the award decision is a key efficiency indicator. A structured award schedule helps to meet deadlines.
- Average RFQ processing time
- Response rate of the requested suppliers
- Number of queries per RFQ
Quality KPIs
The completeness and comparability of the bids received reflects the quality of the RFQ documentation. Scoring models enable objective evaluations.
Result KPIs
Cost savings and supplier performance measure the success of the RFQ process. Regular analyses identify optimization opportunities and support strategic decisions.
Risks, dependencies and countermeasures
RFQ processes involve various risks that can be minimized through systematic risk management and preventive measures.
Incomplete specifications
Unclear or incomplete requirements lead to non-comparable offers. A detailed service description and structured mandatory and optional criteria create clarity.
- Avoid ambiguous formulations
- Clearly define technical standards
- Formulate quality requirements in a measurable way
Supplier dependencies
A supplier base that is too narrow increases supply risks. The development of a balanced supplier longlist and regular market monitoring reduce dependencies.
Compliance and legal certainty
Public procurement regulations must be strictly adhered to in public tenders. Procurement guidelines and a complete procurement file guarantee legally compliant processes.
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Practical example
A mechanical engineering company needs 10,000 precision parts for a new product line. After analyzing the market, five qualified suppliers are identified and invited to the RFQ. The detailed specification includes technical drawings, tolerances, material requirements and delivery dates. Within two weeks, four complete offers are received, which are evaluated using a scoring matrix.
- Cost savings of 15% compared to previous procurement
- Identification of a new, high-performance supplier
- Improving delivery conditions through competition
Trends & developments around RFQs
Digitalization and artificial intelligence are revolutionizing traditional RFQ processes. New technologies enable automated processes and data-driven decisions.
Digital RFQ platforms
Electronic tendering systems automate the entire RFQ cycle. Integrated workflows reduce manual activities and significantly shorten throughput times.
- Automated supplier notification
- Digital bid submission and management
- Integrated evaluation tools
AI-supported offer evaluation
Artificial intelligence automatically analyses offer content and identifies anomalies or optimization potential. Machine learning algorithms support price plausibility checks and risk detection.
Sustainability criteria in RFQs
Environmental and social standards are increasingly being integrated into RFQ evaluations. In addition to price, evaluation criteria also take into account sustainability aspects and compliance requirements.
Conclusion
Request for Quote (RFQ) is an indispensable tool in modern Procurement that promotes transparency and competition. Structured processes and digital support can reduce costs and optimize supplier relationships. The continuous development of RFQ processes makes a significant contribution to procurement success. Professional RFQ processing strengthens the negotiating position and creates sustainable competitive advantages.
FAQ
What is the difference between an RFQ and an RFP?
An RFQ focuses on determining the price for already defined specifications, while an RFP requests comprehensive solution proposals and concepts. RFQs are used for standardized products, RFPs for complex projects with scope for design.
How many suppliers should be requested for an RFQ?
Ideally, 3-7 suppliers are needed to ensure sufficient competition without disproportionately increasing costs. The number depends on the market structure, the procurement volume and the strategic importance.
What information belongs in an RFQ?
A complete RFQ includes detailed product specifications, quantities, delivery dates, quality requirements, commercial terms and evaluation criteria. Clear instructions for tender submission and deadlines are also essential.
How long should the tender period be for an RFQ?
The quotation period depends on the complexity of the request and is typically 1-4 weeks. Standard products require shorter deadlines, while customized solutions require more processing time. Reasonable deadlines encourage suppliers to participate.
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