RFI, RFP and RFQ
| Document | Question it asks | When it fits |
|---|---|---|
| RFI, request for information | What can you do? | Early screening of capabilities, certifications and similar products |
| RFP, request for proposal | How would you solve this? | When the supplier proposes the design or platform, common with ODMs |
| RFQ, request for quotation | What will this cost, on these terms? | When the product is defined well enough to price |
In OEM/ODM work the lines blur. An ODM request often asks for a price and a proposal at the same time, for example which existing platform the supplier would start from and what it would change. That works as long as the request says which parts are fixed and which are open.
What goes into an RFQ package
The detail is covered in what to include in an OEM/ODM RFQ, and the RFQ template gives a structure to fill in. In short, a package needs:
- The PRD or a supplier brief, with priorities
- Drawings, CAD and the BOM if the design exists
- Volume tiers: launch quantity and annual volumes, so price breaks are visible
- Target markets and certifications
- Test and quality expectations
- Commercial terms: the Incoterm to quote on, payment terms, quote validity, response deadline
- A response format, so every supplier answers in the same structure
What a complete quote contains
| Item | Why it matters |
|---|---|
| Unit price at each volume tier | Shows how price changes with volume |
| NRE, itemized | Separates one-off engineering from the unit price |
| Tooling: number of tools, cavities, steel, expected life, ownership | Explains the tooling price and future capacity |
| MOQ per part and per order | Small orders may carry surcharges |
| Lead times for samples, tooling, pilot and production | Sets the real schedule |
| Incoterm and named place | Defines what the price includes |
| Payment terms | Affects cash flow, especially deposits for tooling and materials |
| Validity and currency | Prices tied to component costs can move |
| Assumptions and exclusions | What is left out matters as much as what is in |
Making quotes comparable
Even with a good package, quotes rarely line up on arrival. Before comparing:
- Put every quote on the same Incoterm and add freight, duty and other delivery costs.
- Add one-off costs, NRE and tooling, at your realistic volume, not the supplier’s. Together with step 1, that gives each quote’s landed cost per unit.
- List each supplier’s exclusions and estimate what they would cost.
- Ask clarifying questions in writing and share the answers with every supplier.
The supplier quote comparison calculator does the arithmetic for steps 1 and 2.
A quote far below the others is a question, not a win. It often reflects a different reading of the requirements, a cheaper component choice or costs that will come back as change orders.
Common RFQ mistakes
- Different packages for different suppliers. If one supplier saw a later drawing or a different volume, its quote is not comparable.
- No volumes, or one volume only. Suppliers fill the gap with their own assumptions, and you cannot see price breaks.
- Requirements changed mid-RFQ. Every supplier must get the change at the same time, with time to re-quote.
- A deadline that forces guesses. Rushed quotes carry wide margins or long exclusion lists.
- Choosing on headline price. The lowest unit price is often not the lowest program cost.
How many suppliers to include
Enough to compare, few enough that each one gives a serious answer. Many teams send a full RFQ to three to five shortlisted suppliers after a lighter screening step. A supplier that suspects it is one of twenty has little reason to put engineering time into its answer.
Share detailed designs only under an appropriate confidentiality agreement. For manufacturers in China, that is usually an NNN agreement.
Where Zefinity helps
RFQ management and quotation analysis are part of Zefinity’s Connect service, alongside OEM/ODM identification and supplier qualification.
Frequently asked questions
What is the difference between an RFQ and a quotation?
The RFQ is the buyer's request: what to price, at which volumes, on which terms and in which format. The quotation is the supplier's answer. A well-built RFQ makes the quotations comparable because every supplier prices the same scope; a vague one produces quotes that each answer a slightly different question.
How long should suppliers get to respond to an RFQ?
Long enough to do the engineering review the product needs. For a well-defined product, one to three weeks is common. An ODM response that includes a design proposal, platform options or a detailed NRE breakdown can take longer. Set a deadline, give every supplier the same one, and answer clarifying questions for all of them at once.
Should an RFQ include a target price?
It can help. A target cost lets suppliers propose realistic options, such as a different platform or component choices, instead of quoting a design that cannot meet it. The risk is that quotes cluster just under the target. A common compromise is to share a target range with the main cost drivers and judge quotes on their breakdown rather than the headline.