What is the main purpose of a Request for Quote (RFQ)?

The main purpose of a Request for Quote (RFQ) is to invite suppliers to bid on specific products or services. An RFQ is typically used when an organization knows exactly what it needs and is looking for price estimates from various suppliers. This process helps in obtaining competitive pricing and terms, allowing the organization to make informed purchasing decisions based on the responses received. By clearly defining the requirements, an RFQ ensures that all bidders are quoting on the same specifications, facilitating fair comparisons among the submitted bids.

In the context of procurement, an RFQ is a critical step that leads to selecting the most suitable vendor based on both price and quality of the offerings. While gathering information on market trends and analyzing competitor pricing may be valuable activities, they do not encapsulate the primary function of an RFQ. Additionally, assessing internal compliance with policies and competitor pricing strategies pertain to different processes that do not directly align with the specific purpose of soliciting bids from suppliers. Thus, the choice accurately reflects the primary objective of an RFQ in the procurement process.