RFQ
Request for quotation: a request sent to suppliers asking them to quote a price and terms for a specified need.
What it means in business
An RFQ describes what you want to buy, the quantity, the specification and the delivery date, and asks several suppliers to reply with prices and terms. It lets you compare offers on the same basis. An RFQ is not an order: nothing is committed until you place a purchase order.
Example
A factory needs 5,000 fasteners to a drawing. It sends the same RFQ to four suppliers, compares their prices, lead times and payment terms, and places a purchase order with the best fit. This is an illustration of normal business use rather than a quoted case study.
How to use it correctly
Send every supplier the same information so the quotes are comparable, give a reply date, and keep the quotes you receive with the order. Compare more than price: delivery, quality record and payment terms matter too.
Common confusion
An RFQ is not a tender, which usually follows formal public rules, and it is not a purchase order. A quotation is the supplier's reply to an RFQ.
Related glossary terms
Written on 24 October 2026 for lamp. Confirm the current rules with the official source or an adviser before relying on it.