The quote for quotes ( RFQ ) is a standard business process whose goal invites suppliers into the bidding process to bid on a particular product or service. RFQ generally means the same as IFB (Invitation For Bids).
Video Request for quotation
Overview
An RFQ usually involves more than price per item. Information such as payment terms, quality level per item or contract length can be requested during the bidding process.
To receive the correct quotation, RFQ often includes a specification of the goods/services to ensure all suppliers are bidding on the same goods/services. Logically, the more detailed the specification, the more accurate the quotes and comparable with other suppliers. Another reason to be specified in sending RFQs is that the specification can be used as a legally binding document for suppliers.
The availability of ubiquitous Internet has led many government agencies to switch to state-run websites or vendors that provide RFQ and RFI and RFP lists. Many allow vendors to sign up for no fee to either receive e-mail requests in general or for certain categories of products or services that have interest. In some cases, the entire process is done online with responses as scanned documents or PDF files uploaded to the server; in other cases, or for legal reasons, responses must be sent in hard copy and/or on CD/DVD discs or flash drives by mail or delivery service.
Supplier must return the offer with the date and time set for consideration for the award. Discussions can be held on bids (often to clarify technical ability or to record errors in proposals). Bid does not necessarily mean the end of the offer. Several rounds can follow or even reverse auctions can follow to produce the best market price.
RFQs are best suited for standardized and commodified products and services as possible, as this makes each supplier's offer comparable. In practice, many businesses use RFQ where RFT or RFI would be more appropriate.
RFQ allows different contractors to provide quotes, among which the best will be chosen. It also makes the potential of competitive offerings much higher, as suppliers can be very confident that they are not the only ones offering for the product.
Demand for quotations most commonly used in business environments but can also be found is being applied to the domestic market.
Maps Request for quotation
industry-specific RFQ
Market research
Here is a list of specifications that are normally included in a study request in the market research industry:
- Research Methodology (eg, Conjoint Studies, Discrete Choice Studies, Optimization Studies, Satisfaction Tracking, Segmentation, etc.)
- Readable subgroups are required for statistically significant reporting
- Duration of the Survey (e.g., 1-5 minutes, 6-10 minutes, 11-15 minutes)
- Material type (eg, commodity)
- Type of study (e.g., Online, P, CLT, Focus Group)
See also
- E-procurement
- Request to comment
- Request information
- Request for proposal
- Request for tenders
- The auction is reversed
References
Source of the article : Wikipedia
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