What is an RFQ Process?
A Request for Quotation (RFQ) is a structured procurement process where organizations invite suppliers to submit competitive bids for specific goods or services. A well-run RFQ process ensures fair competition, transparent evaluation, and optimal pricing.
Step-by-Step RFQ Process
- Define requirements — Detailed specifications, quantities, delivery timelines, quality standards
- Identify suppliers — Pre-qualified vendors from your supplier database
- Issue the RFQ — Send standardized templates with clear evaluation criteria
- Collect responses — Centralized submission portal with automatic deadline tracking
- Evaluate bids — Weighted scoring on price, quality, delivery, and terms
- Negotiate — Leverage competitive bids for optimal terms
- Award and contract — Formalize the agreement with the winning supplier
Common RFQ Mistakes to Avoid
- Vague specifications that lead to incomparable bids
- Too few suppliers invited (aim for 3-5 minimum)
- Ignoring total cost of ownership (focusing only on unit price)
- No standardized evaluation criteria
Automate Your RFQ with Millisave
Millisave's e-sourcing module lets you create RFQs in minutes, invite suppliers with one click (including without requiring supplier login), auto-compare responses side-by-side, and run reverse auctions for competitive categories.