Definition
RFQ (request for quotation)A buyer’s request for prices on specified goods, with quantities and any technical requirements. What to buy is already settled; the RFQ settles who supplies it and at what price. Also called a request for quote; in the UK, often just an enquiry.
Definition
RFP (request for proposal)A buyer describes a need and asks suppliers how they would meet it. The answers are written proposals, judged on approach, capability, service and price together. Distributors see RFPs for bigger commitments, such as a year of site supply or a framework agreement.
Definition
Quotation (quote)The seller’s answer to an RFQ: specific products, quantities, unit prices, delivery terms and a validity period. Once accepted, usually with a purchase order, it becomes the basis of the order.
What is the difference between an RFQ, an RFP, an RFI and a quotation?
| Document | Who writes it | What it says | How the answer is judged |
|---|---|---|---|
| RFI (request for information) | Buyer | “Tell us about your company and range.” | Shortlists suppliers; no price comparison yet |
| RFQ (request for quotation) | Buyer | “Price these items in these quantities.” | Mostly price, delivery and terms |
| RFP (request for proposal) | Buyer | “How would you meet this need?” | Approach, capability, service and price |
| Quotation | Seller | “Here are our products, prices and terms.” | The buyer accepts, negotiates or declines |
An invitation to tender (ITT), common in public-sector and construction work, can combine RFQ-style price schedules with RFP-style questions.
What is an RFQ in wholesale distribution?
For a wholesaler, an RFQ rarely looks like a form. It is a contractor’s buyer emailing “can you price the attached”, an Excel take-off in the customer’s own columns or a PDF schedule, written in shorthand: abbreviations, sizes without units, a competitor’s code or the customer’s own part number.
Distributors also send RFQs to their own suppliers, but it is the customer’s RFQ that comes with a deadline. A contractor pricing a job often sends the same list to several merchants, and a quick, accurate quotation stands a better chance of winning the order.
Example: an RFQ and the quotation lines that answer it
A plumbers’ merchant receives this enquiry by email. Prices are left out.
Enquiry email from a heating contractor’s buyer
- Can you quote the below, delivered to site Thursday? Thanks
- 20 x 15mm copper 3m
- 100 x 15mm end feed elbows
- 30 x 22mm comp tee
- 12 x 15mm TRVs
| Customer wrote | Quotation line | Qty | Match | Note |
|---|---|---|---|---|
| 15mm copper 3m | Copper tube 15 mm × 3 m, half-hard | 20 | 96 | Sold in 3 m lengths |
| 15mm end feed elbows | End-feed elbow 90°, 15 mm | 100 | 95 | Not solder ring |
| 22mm comp tee | Compression equal tee, 22 mm | 30 | 93 | “Comp” = compression |
| 15mm TRVs | Thermostatic radiator valve 15 mm, angled | 12 | 64 | Angled or straight? Check |
Illustrative example with invented sample data. ERP Agent scores each line from 0 to 100 and marks lines under 80, like the valve, for review.
Which comes first: RFQ, quotation or purchase order?
The usual order in a B2B sale. Repeat orders often start at the purchase order.
- RFI (optional): the buyer shortlists suppliers.
- RFQ or RFP: the buyer asks for prices or proposals.
- Quotation or proposal: the seller answers.
- Purchase order: the buyer accepts and commits.
- Sales order: the seller enters it in the ERP or order system, delivers and invoices. See purchase order vs sales order and the quote-to-order process.
Why does the difference matter when you automate quoting?
An RFP is answered with a written proposal. An RFQ is answered line by line: read each line, identify the product, price it, check it. According to our case study, a sales rep spends on average 4–7 minutes per line when creating quotes and orders by hand, so at that rate a 60-line enquiry, taken as an example, would take 4–7 hours. Try your own volumes in the quote cost calculator.
That line work is what RFQ automation for distributors takes on, as part of AI quote automation. ERP Agent reads the enquiry from email, PDF, Excel or Word, identifies the right products in your catalogue, brings in customer pricing and prepares a quote your team reviews before it lands in your ERP, CRM or other system.
Your team stays in control
ERP Agent prepares the quotation for every customer RFQ, line by line, from your catalogue and customer prices. Your team keeps the final say: nothing reaches a customer before a person approves it.
