When should you send an RFQ rather than going straight to a preferred supplier?

Send an RFQ whenever the purchase is large enough that a 10-15% price difference matters, whenever your preferred supplier has not quoted the item in the last 60-90 days, or whenever you have no established pricing for the spec being requested. For repeat items under an agreed price list, a PO direct to the preferred supplier is often more efficient.

How many suppliers should receive an RFQ?

A minimum of 2-3 suppliers per RFQ is the practical standard. Three gives you a meaningful comparison without creating excessive administration. For high-value or specialist items, 3-5 suppliers makes sense. Going below two means you have no benchmark to test whether the price you have been quoted is competitive.

What happens if all RFQ responses exceed the budget for the job?

Treat the gap as a specification or scope problem, not a negotiation problem. Review the spec for items that could be substituted, the quantity for items where timing could be adjusted, and the delivery requirement for any premium that can be avoided. If the budget genuinely cannot accommodate the work, that conversation needs to happen with the customer before a PO is raised.

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Workflow Scenario

Procurement - Raising an RFQ and Selecting a Supplier

Request. Compare. Order. Done.

Step by step

Specify the RequirementPurchase Orders

Pull the requirement from the job record and write a complete specification including product code, quantity, delivery date, and any job-specific requirements.

Identify SuppliersRFQs

Select 2-3 qualified suppliers from the preferred supplier list or verified contacts. Limit to 5 maximum to keep the comparison manageable.

Raise and Send RFQRFQs

Raise the RFQ with complete specification, quantity, delivery date, job number, and a 5-7 working day response deadline. Send to all selected suppliers simultaneously.

Chase Outstanding ResponsesRFQs

On day 3, call any supplier that has not responded. Exclude non-respondents from the comparison once the deadline passes without extending it for individual suppliers.

Compare and SelectRFQs

Compare all responses on price, lead time, delivery terms, and past supplier performance. Award to the selected supplier in writing and notify unsuccessful suppliers.

Raise Purchase OrderPurchase Orders

Raise the purchase order immediately, referencing the job number and RFQ reference. File all RFQ responses against the job record to support three-way matching at invoice approval.

What this workflow solves

Supplier quotes arrive at different times and are compared informally, making it impossible to tell whether you are getting the best price for the spec or making a like-for-like comparison.

An RFQ is sent without a complete specification, so suppliers quote different interpretations and the comparison is meaningless when responses come back.

The winning supplier is selected and work proceeds without a formal purchase order, losing price protection and making three-way matching impossible when the invoice arrives.

Frequently asked questions

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