Purchasing & suppliers
Request for Quote (RFQ)
By the Supply Chain Manager team · Updated October 16, 2026
A request for quote (RFQ) asks several suppliers to price a defined list of items, quantities and terms so their offers can be compared side by side.
A good RFQ fixes everything except price: specifications, volumes, delivery locations, lead times and payment terms. Otherwise offers are not comparable, and the cheapest unit price may hide longer lead times or worse terms.
Sharing realistic volumes in an RFQ improves the quality of quotes. Suppliers price risk, so vague or inflated volumes either lead to padded prices or to commitments you cannot meet. Including recent purchase history by SKU gives suppliers a clear basis to price from.
RFQ example
Illustrative: an RFQ for 40 fastener SKUs with annual volumes, required lead times and delivery to two warehouses. Supplier A is 4% cheaper, but supplier B quotes half the lead time, which could cut safety stock by more than the price difference.
Why RFQ matters for distributors
Regular RFQs on high-spend categories keep prices current and surface alternative suppliers before you need them.
Common RFQ mistakes
- Comparing unit prices only, without lead time, MOQ, freight and terms.
- Running an RFQ with no real intention to switch, which wears out supplier goodwill.
Examples on this page use made-up round numbers to show the calculation. They are not benchmarks or results from real businesses.