A business generally sends an RFQ when the quantity for a standard product is known and needs are ongoing. RFQs do not generate unsolicited bids and quotes as businesses target specific vendors and contractors.

What happens after an RFQ?

After the RfQ process, professional procurement organizations have to compare the quotations, and try to get the best price for the job (by negotiations, or by conducting an e-auction (a reverse auction or a ticker auction).

When would you use an RFQ?

An RFQ is a request for pricing and payment information about a highly- specific solution. According to Investopedia, “When the soliciting company knows the exact number or type of product or services it desires, it customarily uses an RFQ.