What is a Request for Quotation used for?

A Request for Quotation is used to provide clear product information of the goods that the buyer wants a Quotation for. The seller will assess the Request for Quotation and work out their Quotation document to send back to the buyer. If the buyer wants to proceed to order the goods, they will then issue a Purchase Order document to confirm to proceed with the manufacturing and shipment. The seller will then issue a Proforma Invoice document that will reconfirm the goods on order and include their bank details to request payments.

How to create a Request for Quotation

1. Open IncoDocs

   Open IncoDocs in your browser and navigate to the 'Quotes' section.

2. Create a New Request for Quotation

   Click on 'New Quote' and select the Request for Quotation from the dropdown menu.

3. Fill out & customize your doc

   Fill out document info, customize document fields to your needs and add your company letterhead. If you use Xero or Quickbooks Online, you can also connect your account and autofill data from quotes in your accounting system.

4. Sign & Seal

   Click on the signature box at the bottom of your document to create a reusable digital signature then hit “Save & Quit”. On the document preview screen, click on the ‘More’ dropdown button and select “Add company seal”.

5. Send & Win New Buyers

   Share quotes from IncoDocs in 1-click. You'll know when recipients have viewed your quote so you know when to best follow up.

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Your questions, answered.

What information is included on a Request for Quotation Document?

It’s important that the buyer includes as much specific product information as possible, to clearly communicate the details of the products that they want a quote for. The RFQ should contain information such as:

When would you use an RFQ?

You would use a Request for Quotation (RFQ) when you need to buy standardized products or services with clear specifications. This is common for high-volume items where price is the main deciding factor. The RFQ process helps you get price quotes from different vendors to find the most cost-effective option. It is ideal for quick and straightforward procurement of well-defined goods or services. Using an RFQ ensures a competitive bid environment, allowing you to compare offers from various suppliers and select the best one based on price and payment terms.

Who prepares and sends the RFQ?

The buyer or the purchasing department of a company prepares and sends the RFQ. The process starts with the buyer defining their needs and gathering detailed specifications for the products or services. Once the RFQ document is ready, it is sent to selected vendors who are invited to submit their quotes. This competitive bid process ensures that all bidders have the same information, making it easier to compare price quotes and select the best offer. The RFQ typically includes detailed product descriptions, quantities, delivery requirements, and payment terms.

What is the difference between RFP and RFQ?

An RFQ (Request for Quotation) and an RFP (Request for Proposal) serve different purposes in international trade. An RFQ is used when the main factor for decision-making is the price of standard products or services. Vendors provide pricing details based on clear specifications. In contrast, an RFP is used for more complex projects where multiple factors such as technical expertise, approach, and cost are considered. An RFP requires detailed proposals and is used to evaluate a supplier's capabilities beyond just price, making it suitable for projects that need customized solutions. This detailed evaluation ensures that the chosen bidder not only meets the technical requirements but also aligns with the project's overall goals and payment terms.