What does RFQ stand for in the procurement process?

In the procurement process, RFQ stands for "Request for Quotations." This document is used by organizations to invite suppliers to submit pricing and terms for specific products or services. It serves as a formal way to gather bids from various vendors, enabling the organization to compare prices and make informed decisions based on the quotations received.

The RFQ process typically allows buyers to describe their needs in detail, including quantities and specifications, which helps suppliers provide more accurate and competitive pricing. This is essential for effective procurement and budget management, as it facilitates transparency and can lead to better negotiation outcomes.

The other acronyms provided do not accurately represent the standard terminology used in procurement practices. While a Request for Qualifications is sometimes used in situations where qualifications rather than prices are being sought (such as in the selection of contractors for a project), this is not what RFQ denotes. Similarly, "Report for Quality Assurance" and "Review of Financial Quotes" do not align with the typical functions associated with an RFQ.