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Glossary

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.

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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 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 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 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 RFx software RFx software runs requests for information, proposal and quotation in one system, with templates, supplier responses...Read more

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.

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.

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.

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See your contracts run on one record.

  • 1 A 30 minute walkthrough Built around your team, whether that is procurement, legal, IT or finance.
  • 2 Your contracts, not ours Bring a few sample agreements and watch Aavenir AI extract and review them.
  • 3 ServiceNow or standalone We show the deployment that fits the systems you already run.

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