What is an RFQ? A guide for engineering buyers

When an RFQ is useful

An RFQ is useful when the specification is sufficiently clear and the buyer wants to understand the prices and terms suppliers will offer. For a workshop, that might be a known grade and size of steel, a specified bearing, or a defined quantity of machined parts.

If the requirement is open to different technical approaches, a broader request for proposal may be more appropriate. Terminology varies between organisations and procurement procedures, so check the process your business or customer requires.

What to include in a material RFQ

Give suppliers enough information to quote the same requirement and identify gaps. Include the material identity and specification, quantity and unit, required date, delivery location, and a response deadline. Where relevant, identify the approved drawing or revision and the contact for technical questions.

Ask for the price basis and any freight or other charges separately, along with availability, pack multiples, quote validity and whether a delivery date is confirmed or estimated. Do not assume a blank charge means free delivery.

Part number, description, grade and applicable revision.
Quantity, unit, destination and required date.
Unit price, currency, minimum order and pack size.
Delivery charges, lead time, validity and deviations.

Review the answers before choosing

Check that each offer covers the requested items and quantities. A price for a different bundle or a different currency may not be directly comparable. If a supplier proposes a different part or specification, obtain the appropriate technical review rather than treating it as interchangeable.

Compare the recorded goods cost and known charges, then consider delivery information, validity and other requirements. Document why the preferred offer was chosen and obtain the approval your purchasing process requires.

An example from a machine shop

A fictional machine shop needs 24 lengths of a specified aluminium grade for a job. The buyer checks the uncovered quantity and requests prices from suitable suppliers. One supplier quotes for 24 lengths, another only in packs of 30. Their unit prices alone do not describe the same purchase; the buyer should compare the full offers and confirm whether the extra quantity is acceptable.

A request is not a purchase order. After selecting an offer, the team still follows its approval and ordering process. Recon's development build can prepare RFQs and record offers locally; supplier communication is preview-only.

A short preparation checklist

Before approaching suppliers, check that the quantity genuinely needs sourcing and that another open order is not already intended to cover it. Confirm which suppliers can offer the relevant item and whether the request includes any drawings or confidential information that need controlled handling.

When responses arrive, retain the supplier's reference and the date and scope of the offer. If an answer is incomplete, ask for clarification rather than filling in an assumed price, charge or delivery date. Record amendments as clearly as the original offer so reviewers understand which terms are current.

Your business may also have formal rules for competition, supplier selection and approval. An RFQ template can make routine information easier to gather, but it should be adapted to the requirement and the applicable process rather than treated as a substitute for judgement.

What happens after quotations arrive?

First establish whether the response matches the requested scope. A supplier might quote a substitute grade, a different pack or a delivery destination that was not requested. These are not necessarily reasons to reject an offer, but the differences should be visible and sent to the appropriate person for review.

Then record the commercial terms: the quotation reference, quantities, unit prices, currency, known charges, validity and any dates. Check whether a date is explicitly confirmed by the supplier or is an estimate based on a lead time. If a supplier has not stated freight, ask for it rather than entering zero.

Compare genuinely compatible offers and document why a particular option is proposed. Depending on the requirement, the best choice may be influenced by technical compliance or timing as well as price. Your company's approval rules determine who can accept that recommendation and proceed to purchasing.

The final step is an order placed through the normal process. The request, offer, decision and order should each be identifiable. If the supplier changes terms before ordering, confirm the revised offer and repeat any review that the change requires.

Frequently asked questions

Does an RFQ place an order?

No. An RFQ requests a quotation. A purchase order is a separate ordering document, subject to the applicable terms and approval process.