A Request for Quotation (RFQ) is a formal document used by organizations to solicit price quotes from suppliers for specific products or services. It outlines the requirements, specifications, and quantities needed, allowing vendors to provide competitive pricing. RFQs are commonly used in procurement processes to ensure transparency and fairness. Once suppliers receive the RFQ, they prepare and submit their quotations, detailing their prices and terms. The organization then evaluates these responses to select the best offer based on factors like cost, quality, and delivery time. This process helps businesses make informed purchasing decisions while fostering healthy competition among suppliers.