The Request for Quotation (RFQ) process is a sourcing method used when the requirements for a product or service are clearly defined and standardised. Best practice is to issue RFQs to a list of pre-qualified or approved suppliers. This ensures that any supplier submitting a quote is already deemed capable of meeting the required quality, delivery, and other essential standards. Because the technical and quality aspects are already established and the suppliers are vetted, the primary basis for awarding the contract becomes the price. Therefore, price is often the main, if not the only, variable differentiating the quotations received. This makes the RFQ a streamlined and efficient process for routine or standard purchases.

B. RFQs are for clearly specified items; detailed technical proposals are characteristic of a Request for Proposal (RFP) or Invitation to Tender (ITT).

C. The RFQ process is significantly less formal and administratively burdensome than the more complex and rigorous tendering process.

E. The RFQ process is ideally suited for low-value, standard purchases, as it is a simpler and faster method than formal tendering.

1. Chartered Institute of Procurement & Supply (CIPS). (2019). Commercial Contracting (L4M3) Study Guide. Profex Publishing. In the section covering sourcing processes (typically Chapter 2)

the guide explains that an RFQ is used for straightforward

low-value requirements where the specification is clear. It emphasizes that because the requirement is well-defined

the award decision is usually based on the lowest price from a supplier capable of meeting the terms.

2. Lysons

K.

& Farrington

B. (2020). Procurement and Supply Chain Management (10th ed.). Pearson. In Chapter 10

'Sourcing'

the text distinguishes between different sourcing documents

stating

"A request for quotation (RFQ) is an invitation to suppliers to bid on specific products or services... The RFQ is primarily a price-focused document" (p. 315). It also supports the use of approved supplier lists for efficiency and risk reduction.

3. Monczka

R. M.

Handfield

R. B.

Giunipero

L. C.

& Patterson

J. L. (2016). Purchasing and Supply Chain Management (6th ed.). Cengage Learning. Chapter 8

'Supplier Evaluation and Selection'

clarifies that an RFQ is used when "the buyer is seeking bids for a simple requirement where the specifications are known and not open to variation... the award is typically made to the lowest-priced bidder" (p. 268).