Vendor selection is an important process in procurement cycle. Once requirements are gathered we will look for possible suppliers who can fulfill the requirements at the best possible price. So a request is made to vendors to submit their quotations indicating the price of material along with their terms and conditions. This request is known as request for quotation. The key points about request for quotation are as follows:
Request for quotation is a form of invitation that is sent to vendors to submit quotation indicating pricing and their terms and conditions.
RFQ contains details about goods or services, quantity, date of delivery and date of bid on which it is to be submitted.
Quotation is a reply by a vendor in response to request for quotation.