A Request for Quotation (RFQ) is used by buyers to invite suppliers to bid on a part or a project. This article explains the essential composition of an RFQ. Hope makers and hardware entrepreneurs can benefit from it and establish effective communication with suppliers.
1. Contact Information
Name, telephone number, Fax, Email etc of buyer. Contact info of engineers/designers can also be list here as technical contact.
Delivery and billing info can be also added here though the ones on Purchase Order make more sense.
2. Design Specification
Part number, description, drawing number, revision. If not specified on drawing, material, post treatment should be specified here. Attach related drawings, quality codes, instructions etc to RFQ package. Double check legibility of all documents.
List yearly quantity and per-order quantity.
For new designs, yearly usuage is hard to determine. Ask supplier to quote different quantities will help you make purchase decisions.
For example, if we are launching a new product but we estimate yearly usage of a part to be between 200 and 200k, we can send the following quantity to supplier.
4. Packing Requirement
Specify if parts need to be specially packed or labeled.
5. Quality System Demands
Specify if FAI, PPAP, Warranty period, material certificate, CoC etc, are needed. In generally most suppliers would provide basic certificates and FAI for free if order dollar value is greater than a few thousand US dollars.
6. Other terms and conditions
Specify quotation deadline if it is important to you.
Payment term and delivery term may appear here, these are essential parts of Purchase Order.