What is the primary use of a Request for Quotation (RFQ)?

The primary use of a Request for Quotation (RFQ) is to request price quotations for common products. An RFQ is specifically designed to gather price information and terms from suppliers for standard or commonly available items or services. This process allows project managers and procurement teams to compare prices, terms, and conditions from multiple vendors, helping them make informed decisions based on cost-effectiveness.

In a typical RFQ scenario, the items or services are defined with clear specifications, and the responding vendors submit their prices along with any applicable delivery timelines and terms. This enables the buyer to have a clear view of the market rates for those common products and aids in budgeting and cost control for projects.

While specialized services can also be itemized in an RFQ, the key aspect is that the RFQ is generally associated with common products rather than unique or highly specialized services, which might require a Request for Proposal (RFP) instead. This distinction underscores why the choice focusing on common products is the most accurate interpretation of an RFQ's primary use.