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Request for quotationFrom Wikipedia, the free encyclopediaJump to: navigation , search

A request for quotation (RFQ ) is a standard business process whose purpose is to invitesuppliers into a bidding process to bid on specific products or services . RFQ, generally meansthe same thing as IFB (Invitation For Bid) .[1]

An RFQ typically involves more than the price per item. Information like payment terms, qualitylevel per item or contract length are possible to be requested during the bidding process .

To receive correct quotes , RFQs often include the specifications of the items/services to makesure all the suppliers are bidding on the same item/service. Logically, the more detailed thespecifications , the more accurate the quote will be and comparable to the other suppliers.

Another reason for being detailed in sending out an RFQ is that the specifications could be usedas legal binding documentation for the suppliers.

The suppliers have to return the bidding by a set date and time to be considered for an award.Discussions may be held on the bids (often to clarify technical capabilities or to note errors in a

proposal). The bid does not have to mean the end of the bidding. Multiple rounds can follow oreven a reverse auction can follow to generate the best market price.

RFQs are best suited to products and services that are as standardised and as commoditised as possible, as this makes each suppliers quotes comparable. In practice, many businesses use anRFQ where an RFT or RFI would be more appropriate .[2]

An RFQ allows different contractors to provide a quotation, among which the best will beselected. It also makes the potential for competitive bidding a lot higher, since the supplierscould be quite certain that they are not the only ones bidding for the products.

Requests for quotations are most commonly used in the business environment but can also befound being applied to domestic markets .

Contents

1 Industry Specific RFQs o 1.1 Market Research

2 See also 3 References 4 Further reading

Industry Specific RFQs

http://en.wikipedia.org/wiki/Request_for_quotation#mw-navigationhttp://en.wikipedia.org/wiki/Request_for_quotation#mw-navigationhttp://en.wikipedia.org/wiki/Request_for_quotation#mw-navigationhttp://en.wikipedia.org/wiki/Request_for_quotation#p-searchhttp://en.wikipedia.org/wiki/Request_for_quotation#p-searchhttp://en.wikipedia.org/wiki/Request_for_quotation#p-searchhttp://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Distributor_%28business%29http://en.wikipedia.org/wiki/Distributor_%28business%29http://en.wikipedia.org/wiki/Product_%28business%29http://en.wikipedia.org/wiki/Product_%28business%29http://en.wikipedia.org/wiki/Product_%28business%29http://en.wikipedia.org/wiki/Service_%28economics%29http://en.wikipedia.org/wiki/Service_%28economics%29http://en.wikipedia.org/wiki/Service_%28economics%29http://en.wikipedia.org/wiki/Invitation_for_bidhttp://en.wikipedia.org/wiki/Invitation_for_bidhttp://en.wikipedia.org/wiki/Request_for_quotation#cite_note-1http://en.wikipedia.org/wiki/Request_for_quotation#cite_note-1http://en.wikipedia.org/wiki/Request_for_quotation#cite_note-1http://en.wikipedia.org/wiki/Contracthttp://en.wikipedia.org/wiki/Contracthttp://en.wikipedia.org/wiki/Contracthttp://en.wikipedia.org/wiki/Biddinghttp://en.wikipedia.org/wiki/Biddinghttp://en.wikipedia.org/wiki/Biddinghttp://en.wikipedia.org/wiki/Sales_quotehttp://en.wikipedia.org/wiki/Sales_quotehttp://en.wikipedia.org/wiki/Sales_quotehttp://en.wikipedia.org/wiki/Specificationshttp://en.wikipedia.org/wiki/Specificationshttp://en.wikipedia.org/wiki/Reverse_auctionhttp://en.wikipedia.org/wiki/Reverse_auctionhttp://en.wikipedia.org/wiki/Reverse_auctionhttp://en.wikipedia.org/wiki/Request_for_Tenderhttp://en.wikipedia.org/wiki/Request_for_Tenderhttp://en.wikipedia.org/wiki/Request_for_Tenderhttp://en.wikipedia.org/wiki/Request_for_informationhttp://en.wikipedia.org/wiki/Request_for_informationhttp://en.wikipedia.org/wiki/Request_for_informationhttp://en.wikipedia.org/wiki/Request_for_quotation#cite_note-2http://en.wikipedia.org/wiki/Request_for_quotation#cite_note-2http://en.wikipedia.org/wiki/Request_for_quotation#cite_note-2http://en.wikipedia.org/wiki/Domestic_markethttp://en.wikipedia.org/wiki/Domestic_markethttp://en.wikipedia.org/wiki/Domestic_markethttp://en.wikipedia.org/wiki/Request_for_quotation#Industry_Specific_RFQshttp://en.wikipedia.org/wiki/Request_for_quotation#Industry_Specific_RFQshttp://en.wikipedia.org/wiki/Request_for_quotation#Market_Researchhttp://en.wikipedia.org/wiki/Request_for_quotation#Market_Researchhttp://en.wikipedia.org/wiki/Request_for_quotation#See_alsohttp://en.wikipedia.org/wiki/Request_for_quotation#See_alsohttp://en.wikipedia.org/wiki/Request_for_quotation#Referenceshttp://en.wikipedia.org/wiki/Request_for_quotation#Referenceshttp://en.wikipedia.org/wiki/Request_for_quotation#Further_readinghttp://en.wikipedia.org/wiki/Request_for_quotation#Further_readinghttp://en.wikipedia.org/wiki/Request_for_quotation#Further_readinghttp://en.wikipedia.org/wiki/Request_for_quotation#Referenceshttp://en.wikipedia.org/wiki/Request_for_quotation#See_alsohttp://en.wikipedia.org/wiki/Request_for_quotation#Market_Researchhttp://en.wikipedia.org/wiki/Request_for_quotation#Industry_Specific_RFQshttp://en.wikipedia.org/wiki/Domestic_markethttp://en.wikipedia.org/wiki/Request_for_quotation#cite_note-2http://en.wikipedia.org/wiki/Request_for_informationhttp://en.wikipedia.org/wiki/Request_for_Tenderhttp://en.wikipedia.org/wiki/Reverse_auctionhttp://en.wikipedia.org/wiki/Specificationshttp://en.wikipedia.org/wiki/Sales_quotehttp://en.wikipedia.org/wiki/Biddinghttp://en.wikipedia.org/wiki/Contracthttp://en.wikipedia.org/wiki/Request_for_quotation#cite_note-1http://en.wikipedia.org/wiki/Invitation_for_bidhttp://en.wikipedia.org/wiki/Service_%28economics%29http://en.wikipedia.org/wiki/Product_%28business%29http://en.wikipedia.org/wiki/Distributor_%28business%29http://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Request_for_quotation#p-searchhttp://en.wikipedia.org/wiki/Request_for_quotation#mw-navigation

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Market Research

Here is the list of specifications that are typically included in requests for studies in the marketresearch industry

Type of Study (e.g., Online, P, CLT, Focus Groups) Survey Lengths (e.g., 1-5mins, 6-10mins, 11-15mins) Research Methodology (e.g., Conjoint Study, Optimization Study, Discrete Choice

Study, Segmentation, Satisfaction Tracking, etc.) Subgroups - readable bases necessary for statistically significant reporting