Metropolis (RFQ) is a process wherein an enterprise asks a set of potential suppliers or service providers to submit their price quotations and stand a chance to supply or provide goods or services. Once the enterprise receives the price quotations, it can choose the vendor that best matches its criteria for the goods or services. A request for quote allows vendors to submit bids for how much they will charge for the precise product or service you are seeking. An RFQ lets you choose the best supplier with the best value because it includes the following:
• Exact specifications for the product you want to buy, including quantities
• A request that the vendor itemize costs so you can compare bids
• A deadline for submitting responses
• A timetable for delivering the product or service
• A system for comparing bids easily
Keep in mind a quote from any potential vendor is just that: a quote. It is not a firm offer and a company can’t use an RFQ as a contract or formal agreement. Once you extend an offer to the supplier and the vendor accepts, then you create the final contract.