---
title: Request for quotation: Definition and How It Works | Aavenir
url: https://aavenir.com/glossary/request-for-quotation/
description: A request for quotation (RFQ) asks suppliers to quote prices and terms for specific, clearly defined products or services. Learn when to use one.
updated: 2026-11-07
---

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# What is a request for quotation (RFQ)?

A request for quotation (RFQ) is a process in which a company or public body asks suppliers to quote prices and terms for specific, clearly defined products or services.

## How it works

The buyer describes exactly what it needs, with quantities, specifications and delivery requirements, and invites suppliers to quote. A request for quotation is about more than unit price: it can ask for payment terms, quality levels, lead times and contract length. It is also known as a call for bids or invitation for bids.

## Request for quotation versus request for proposal

Use a request for quotation when you know exactly what you want and the main question is price and terms. Use a request for proposal when you need suppliers to propose how to solve a problem. Some buyers run a request for information first, then a request for proposal or quotation.

## Key takeaways

- **Define clearly.**so all quotes cover the same scope.

- **Use a pricing template.**so quotes can be compared line by line.

- **Look at total cost.**including delivery, terms and exclusions.

- **Carry the price forward.**into the order, contract and invoice checks.

## How Aavenir handles it

[RFPflow](https://aavenir.com/solutions/rfp-management-software/) runs requests for quotation with structured pricing templates and a supplier portal, scores responses with Aavenir AI and hands the award to the contract, so the quoted price is the one [Invoiceflow](https://aavenir.com/solutions/accounts-payable-automation/) checks later.

## Keep reading

[Quotation A quotation, or quote, is a document a seller gives a buyer offering goods or services at a stated price under stated... Read more](https://aavenir.com/glossary/quotation/)[Request for proposal A request for proposal (RFP) is a formal document that invites qualified suppliers to propose a solution to a defined... Read more](https://aavenir.com/glossary/request-for-proposal-rfp/)[RFx software RFx software runs requests for information, proposal and quotation in one system, with templates, supplier responses... Read more](https://aavenir.com/glossary/rfx-software/)

Frequently asked questions (FAQ)

## Common questions

###

### When should you use a request for quotation?

When the goods or services are well defined and the decision rests mainly on price, delivery and terms. For complex needs where approach matters, use a request for proposal. [Read about request for proposal](https://aavenir.com/glossary/request-for-proposal-rfp/).

###

### How many suppliers should you invite?

Enough for real competition, often three or more, but not so many that evaluation becomes slow. Public bodies may have rules on minimum numbers. [Read about supplier sourcing](https://aavenir.com/glossary/supplier-sourcing/).

###

### What happens after a request for quotation?

Quotes are compared, the best one is selected, and the buyer issues a purchase order or contract on the quoted terms. Unsuccessful suppliers should be told. [Read about quotations](https://aavenir.com/glossary/quotation/).

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