What Is Request for Quote (RFQ)?
Also known as: RFQ, RFQ process, quote request
Definition
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.
Request for Quote (RFQ) Explained
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.
Frequently Asked Questions
What is the difference between RFQ, RFP and RFI?
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?
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?
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?
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.
Related Terms
Configure, Price, Quote (CPQ)
Configure, Price, Quote (CPQ) is software that guides a salesperson through selecting valid product options, calculates the price from rules and discounts, and produces a quote document, then passes the accepted configuration to the ERP as a sales order.
Sales Order
A sales order is the ERP document recording a customer's commitment to buy specific items at agreed prices and dates. It reserves or creates demand for supply, triggers picking and shipping, and later drives invoicing and revenue recognition.
Estimate Job
An estimate job in SyteLine is a non-production job used to cost a potential order. It carries materials and routing operations like a real job so SyteLine can calculate a full cost, but it creates no demand, consumes no inventory, and is ignored by planning.
Purchase Requisition
A purchase requisition is an internal request to procure goods or services, routed for approval against budget and authority limits before a buyer sources it and converts it into a purchase order sent to a supplier.
Job Costing
Job costing accumulates material, labor, subcontract and overhead costs against a specific job or work order, so each order has its own actual cost and margin. It suits make-to-order and engineer-to-order shops where every job differs.
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PCBA RFQ Request for Quote Template
Fill in a complete printed circuit board assembly RFQ so EMS providers can quote without back-and-forth questions.
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Free tools
- PCBA RFQ Request for Quote TemplateFill in a complete printed circuit board assembly RFQ so EMS providers can quote without back-and-forth questions.
- Supplier RFQ Quote Comparison WorksheetCompare supplier quotes on landed cost: unit price, freight, duty, MOQ and lead time per supplier, with extended cost and price spread calculated.
- ERP Vendor RFI Letter TemplateGenerate a request for information letter to send to ERP vendors before the full RFP, with scope, questions, timeline and response rules.
ERP fixes and how-tos
- ERP Selection RFP Timeline: How Long It TakesA realistic ERP selection RFP timeline: requirements, RFI, RFP, demos, AI proof of value, references, negotiation. Typical durations and what stretches them.
- How to Write an RFP for ERP AIHow to write an RFP when AI is in scope: separate the ERP from the AI layer, define data, security and deployment constraints, and set testable acceptance criteria.
- ERP RFP Template with AI RequirementsAn ERP RFP requirements template with a ready AI section: data access, security, deployment, model governance, explainability, and commercial terms you can paste in.
Guides
- SyteLine Request for Quote (RFQ) Process ConfigurationConfigure the SyteLine RFQ process for competitive bidding. Set up request for quote workflows, vendor bid comparison, and auto-award rules in CloudSuite Industrial.
- EMS RFQ Turnaround Time: How to Quote Faster Without Losing MarginWhy EMS RFQ turnaround stretches to days and how contract electronics manufacturers cut it: triage, BOM prep, standard times, and AI assisted drafts.
- AI for Injection Molding RFQ Review: From Package to Draft QuoteHow AI reads molding RFQ packages: extracting resin, tolerances, volumes and secondary ops, finding similar parts in your ERP, and drafting quotes for estimator review.