Day 9 — Request for Quotation (RFQ)

What is a Request for Quotation (RFQ)?

• An RFQ is a document sent to multiple vendors to request prices for a material or service. • It helps the purchasing team compare quotations from different vendors. • The best quotation is selected based on price, quality, and delivery time.

• A company needs 100 laptops. • The purchasing team sends an RFQ to Dell, HP, and Lenovo. • After comparing quotations, Dell is selected and a Purchase Order is created.

1. What is an RFQ? 2. Why is an RFQ created? 3. To whom is an RFQ sent? 4. What happens after receiving quotations? 5. What is the difference between RFQ and PO?