Definition of a Request for Quotation
A request to the seller to provide the cost of goods to include prices, quantities, terms and conditions delivery and shipping charges.
Purpose of a Request for Quotation:
The purpose of the Request for Quotation is to request the cost or price of goods from the seller.
The Request for Quotation is used to formally ask the seller for prices on specific quantities of goods. The request will go to each seller that has been identified as a source and the buyer wants prices from. The more common the goods and the more potential sellers, the more RFQ's can be sent out. The objective is for three (3) sellers to respond and provide Quotations so that pricing, and terms and conditions can be compared and multiple sources can be developed.
Process for a Request for Quotation:
RFQ is sent to the seller for Quotation
Seller returns to the buyer a Quotation with price, delivery and terms.
| Fields for a Request for Quotation: | |
| 01FROM (BUYER) | Buyer requesting Quotation |
| 02TO (SELLER) | Seller Quotation requested from blank |
| 03-- | blank |
| 04SHIP TO ADDRESS |
Address for goods to be shipped to |
| 05RFQ NUMBER | Assigned RFQ number for reference |
| 06RFQ DATE | Date RFQ issued |
| 07DELIVER BY | Requested delivery date |
| 08TERMS OF SALE | Letter of Credit; Direct Collection, or Advance Payment |
| 09SHIP VIA | Ocean, Air, Rail or Truck |
| 10 INCOTERM | FOB, CFR, CIF or (other) |
| 11-- | blank |
| 12SHIP FM | Ship From commercial port |
| 13SHIP TO | Ship To commercial port |
| 14-- | blank |
| 15ITEM NO. | Goods Quoted Item Number |
| 16 DESCRIPTION UOM |
Goods description |
| 17UOM | Unit of Measure |
| 18QUANTITY | Quantity of Unit of Measure |
| 19UNIT VALUE | Unit value in USD |
| 20AMOUNT | QUANTITY X UNIT VALUE = AMOUNT |
| 21 SUBTOTAL | Total value of items |
| 22 TAX | Total TAX ON SUBTOTAL |
| 23 FREIGHT | Freight from INCOTERM |
| 24 TOTAL | Total amount to be paid by Buyer |
| 25 USD$ | Amount in USD $ Dollars |
| 26 AUTHORIZED SIGNATURE |
Authorized Signature of Buyer |
| 27 REMARKS | Remarks |
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