A request for quotation is a common business process in which organizations invite suppliers to bid on different products and services. The process is used when a company wants to know the volume of products it wants to purchase. An RFQ can be as short as a single page.
Request for quotations are usually not publicly advertised and are used for off-the-shelf items. Suppliers usually award contracts to the lowest-priced quotation. In an RFQ, people are advised to be specific, define service expectations, request delivery expectations, be cost conscious and give the supplier appropriate time to respond. RFQs are usually completed after some degree of due diligence has been performed.