What is an RFQ?
An RFQ (Request For Quote) is a document detailing the pricing options for a specific service or product that is used during the procurement process.
An RFQ can impact how good a deal you get when it comes to meeting your supply needs. Through an RFQ, your company communicates what they need from the marketplace. What you get back in terms of price, quality, choice, and functionality is determined largely by the quality of your RFQ. An effective RFQ will help you secure the best possible deal. Ineffective RFQs do the opposite, leaving you at risk of overpaying or getting insufficient products or services.
What makes up an effective RFQ?
1. An Introduction
This section is important, as it summarizes a lot of general information before diving into specifics. It describes the overall requirements and expectations for the job, including the end use of the product. This is where you include your company and market information.
2. The Business Overview
This section includes more detail about the intended end use for the product and the standards and certifications that will be required.
Apple Rubber is a customer driven company. Each of our customers is unique and requires different quality documentation. We tailor our quality documentation to meet the specific needs and expectations of every customer.
Order details, quality requirements, and delivery information should also be included here.
3. Detailed Specifications
This section covers product details and requirements such as product drawings, engineering tolerances, milestones, deliverables, timelines, and technical or business requirements. Understanding your requirements will help ensure that you don’t overpay for unnecessary features.
Sometimes it’s difficult to know exactly what your requirements are. You may know your objectives, but what’s the best way to accomplish them? If you’re writing an RFQ for parts in the rubber industry, this would be a good time to speak with an Apple Rubber Design Engineer. They will advise you on the benefits and limitations of materials for the different types of applications that you have in mind.
4. Terms and Conditions
In this section, you can add terms regarding payments, financing, delivery penalties, and other terms that suppliers need to be aware of prior to quoting.
5. Contact Information
Here, you can list your company and contact information for questions and clarifications. You should also state how you will communicate any updates to the RFQ so that suppliers can confirm that they are responding to the most current quote.
6. Historical Information
To get the quickest response times and reduce the effort you’re expanding, it’s critical to submit historical information with your RFQ. It is very common for projects to get shelved for a couple of years and then be resurrected. Sometimes, a company has previously purchased the parts that you are now directly buying. By submitting the historical information, you may determine that, rather than completely redoing the cost analysis, the process may be as simple as updating the cost itself.
By incorporating these key elements in your request for quote, you can help ensure that you’ll secure the best deal available.
Looking for more help?
To get more information about part design or the engineering process, speak to an Apple Rubber engineer directly.