Understanding Request for Quotes (RFQ)
This document provides a high-level overview of how Request for Quotes (RFQ) work in Zoho ERP. It explains the purpose of RFQs, their lifecycle, how they fit into the procurement process, and how they help organizations source goods and services efficiently.
What is a Request for Quote?
A Request for Quote (RFQ) is a procurement document used to invite vendors to submit price quotes for specific items or services. RFQs are typically created after the organization identifies a requirement but before committing to a vendor.
RFQs help you:
- Invite competitive pricing from multiple vendors
- Compare vendor offers based on cost and terms
- Ensure transparency and control in procurement decisions
How Does RFQs Impact Procurement
RFQs play a key role in the procure-to-pay workflow by enabling informed purchasing decisions before a purchase order is created.
When an RFQ is created and published:
- Vendors are invited to submit bids.
- Pricing and terms can be evaluated before selection.
When an RFQ is awarded:
- Selected vendor quotes are finalized.
- The RFQ can be converted into a purchase order.
This ensures purchases are backed by competitive bidding and approved vendor selection.
Vendor Bidding and Evaluation
Once an RFQ is published:
- Vendors can submit online bids through the vendor portal.
- Offline bids can be recorded manually when vendors cannot access the portal.
- Submitted bids can be compared across pricing, delivery, and terms.
This allows procurement teams to make well-informed and compliant sourcing decisions.
Configure Preferences
You can configure RFQ preferences based on your organization’s procurement requirements. Read our help document on Request for Quotes Preferences to learn more.