Document used in soliciting price and delivery quotations that meet minimum quality specifications for a specific quantity of specific goods and/or services. RFQ are usually not advertised publicly, and are used commonly for (1) standard, off-the-shelf items, (2) items built to known specifications, (3) items required in small quantities, or (4) items whose purchase price falls below sealed-bidding threshold. Suppliers respond to a RFQ with firm quotations, and generally the lowest-priced quotation is awarded the contract. See also invitation to bid (ITB), request for tenders, and request for proposals.
If we go by the definition of tender, then it is conceived as a well documented invitation to vendors and contractors for availing the supply of goods and services. Release of tenders is an important procedure towards the over all growth of business process. An organization can’t handle all the responsibilities of progressive supply of goods and service. More than anything else, it would need to recruit additional human resource to arrange the growing supply, which would certainly call for monetary investment for production on urgent basis. Continue reading