# Request for Quote (RFQ)

> Source: https://netray.co/glossary/request-for-quote
> Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems.
> Section: Glossary

## Short answer

A Request for Quote (RFQ) is a formal request from a buyer asking a supplier to state a price, lead time and terms for specified items. In ERP it becomes a sales quote on the selling side or a sourcing event on the buying side.

## Aliases

- RFQ
- RFQ process
- quote request

## Category

erp-core

## Full Definition

An RFQ is a defined-spec price request, as opposed to an RFI (request for information) or an RFP (request for proposal), which ask for capabilities or a solution. For a manufacturer, RFQs arrive in two directions. Customers send RFQs asking you to quote parts or assemblies, and you send RFQs to suppliers for materials, outside processing and tooling.

On the sales side, an inbound RFQ is typically turned into a quote in the ERP. Epicor uses Quote Entry, Infor SyteLine uses the Estimates form for custom work and Customer Orders for standard items, SAP uses sales quotation transaction VA21, and Business Central uses Sales Quotes. For make-to-order and job shop work the quote needs a cost build-up from BOM, routing, material and overhead before a price is set.

On the purchasing side, an outbound RFQ goes to two or more vendors, responses are compared on price, lead time and terms, and the winner becomes a purchase order. Many ERPs have a dedicated RFQ or bid object (SAP has RFQ via ME41, Oracle and Dynamics have sourcing events), while smaller systems manage it with a purchase requisition and attachments.

Most RFQ pain is unstructured input. Requests arrive as email attachments, PDFs and drawings in inconsistent formats, and someone re-keys them. Extracting line items from a document is a reasonable use of a language model, with the estimator reviewing the draft before it enters the ERP.

## Why It Matters

- Win rate depends on response speed and accuracy, and RFQ handling is usually where small manufacturers lose days.
- Tracking RFQs as ERP records lets you measure quote volume, hit rate and margin by customer and product family.
- Supplier RFQs create evidence of price competition, which supports audit and compliance expectations in regulated sectors.
- Structured quotes feed forward into sales orders, so accepted quotes convert without retyping.

## In Practice

A customer emails a PDF RFQ for 12 machined brackets at quantities of 100, 500 and 1,000. The estimator builds three cost lines from routing and material, adds a setup amortised across quantity, and quotes unit prices with a lead time. Of 40 RFQs a month, tracking shows 11 converted. Without ERP quote records, nobody can say which customers or part families have the best win rate.

## Faq

### What is the difference between RFQ, RFP and RFI?

**Answer:** An RFQ asks for a price on a defined specification. An RFP asks for a proposed solution and price. An RFI only gathers information about capabilities before any buying decision.

### Is an RFQ a binding offer?

**Answer:** The RFQ itself is a request, not an offer. The supplier's quote is the offer, and it usually carries a validity date after which the price lapses.

### How does an RFQ appear in an ERP?

**Answer:** On the sales side as a quote or estimate that can convert to a sales order. On the purchasing side as a bid or sourcing event, or a requisition with vendor quotes attached.

### Can AI read RFQ documents?

**Answer:** Yes, for extracting part numbers, quantities and dates from emails and PDFs into a draft quote. A person should review the result because drawings and notes often contain exceptions.

## Search terms

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