Request for quotation: how to get supplier quotes you can actually compare

A request for quotation asks several suppliers to price a clearly defined purchase so you can compare like with like. It is the right tool when you already know what you want — quantities, specification, delivery — and the open question is price and terms. Most RFQ rounds that go wrong fail at comparison, not at sending: five quotes arrive in five formats, with different assumptions baked in, and the cheapest-looking one is simply the one that left the most out.

Request for quotation vs request for proposal

Use a request for quotation when the requirement is fixed and suppliers compete on price, lead time and terms. Use a request for proposal when you know the problem but not the solution, and want suppliers to propose an approach. Mixing the two produces quotes that are really proposals, and proposals nobody can price-compare. If you catch yourself asking suppliers to "suggest the best option", you are writing an RFP.

What the RFQ has to specify

• The item or service, with a specification precise enough that two suppliers would quote the same thing.
• Quantities, including any breaks you want priced separately.
• Delivery location, date and any incoterms or installation assumptions.
• Commercial terms you require: payment terms, warranty, validity period of the quote.
• The response format — ideally a fixed price schedule every supplier completes.
• Deadline, how to submit, and who to contact with questions.
• How you will evaluate: lowest price, or price weighted with lead time, quality or service.

Answer supplier questions to everyone, not just the one who asked. A clarification given privately changes what one supplier is quoting and quietly breaks comparability.

Collect quotes in one structure

1. Send the RFQ with a response form rather than asking for a quote document — the form fixes the fields, units and currency.
2. Make unit price, total price, lead time, validity and exclusions required fields.
3. Log receipt date and time against each supplier, so late submissions are handled consistently.
4. Put all responses into one comparison table before anyone looks at a favourite.
5. Normalise anything that still differs — delivery charges, minimum order quantities, currency.
6. Record the evaluation and the reason for the choice, including why cheaper quotes were rejected.

Ettex Forms is a practical way to run the response side: suppliers complete the same fields, attach their formal quote, and the submissions land side by side in Ettex Records where the comparison and the decision can be kept on the record. That structure matters more than the tool — a shared spreadsheet template works too, provided suppliers cannot change the columns.

Common RFQ mistakes

• A specification loose enough that suppliers quote different products.
• Too few suppliers invited — a quote round of one is a price check, not a competition.
• Deadlines extended for one supplier and not the others.
• Comparing headline totals without checking exclusions.
• No written record of why the winner won, which is the first thing an auditor asks for.

RFQs sit inside the wider procurement process: a purchase requisition authorises the need before the RFQ goes out, and new suppliers still go through supplier onboarding and, where the risk warrants it, a vendor due diligence checklist before the order is placed.