The request-for-quotation (RFQ) process in electronic component buying looks simple from the outside. Buyers send a list of part numbers to a few suppliers. The suppliers send prices back, and the purchasers buy from the one offering the best price.
In practice, the quote that comes back is only as good as the request that went out. This guide covers what belongs on a component RFQ, how to prepare before sending one, who should receive it, and how to evaluate responses using factors beyond unit price.
What Is an RFQ?
An RFQ is a line-item request for price, availability, and lead time against specific manufacturer part numbers, at a stated quantity, for delivery on a stated date. It is a commercial inquiry, not a commitment. No supply obligation exists until a purchase order is issued and accepted.
Two related terms are often confused with it. A request for information (RFI) asks suppliers what they can do before you know what you need. A request for proposal (RFP) asks them to propose an approach, which suits contract manufacturing or turnkey assembly rather than component purchase. An RFQ assumes the decision is already made and the remaining question is price, availability, and terms.
Next step: look up current distributor pricing and availability on Findchips before you decide which parts belong on the request.
What Belongs on Every RFQ Line
An RFQ that gets clean quotes back carries more than just part numbers and counts. Each line should specify:
- Manufacturer part number and manufacturer name. Spell both exactly as they appear on the approved vendor list. Package and temperature grade suffixes are part of the identity of the part, not optional decoration, and omitting them invites a quote on a variant you cannot use.
- Quantity and the horizon behind it. Quote 5,000 pieces, and you get a 5,000-piece price. Tell the supplier those 5,000 pieces are the first release against annual usage of 60,000, and you get a different price. State the immediate quantity, the annual estimate, and whether the annual number is a forecast or a commitment.
- Alternate policy. Say explicitly whether alternates are acceptable, and if so, whether only parts already on the approved vendor list qualify. A supplier holding the in-stock sibling of a part on allocation cannot offer it to you unless the request permits it.
- Packaging and handling. Tape and reel, cut tape, tube, or tray, plus reel size where it matters. Moisture sensitivity level handling and dry pack requirements belong here too.
- Date code and traceability requirements. Maximum age on arrival, whether full manufacturer traceability is required, and what documentation has to accompany the shipment.
- Compliance requirements. RoHS and REACH status, country of origin declaration, and any automotive or industrial qualification the program requires.
- Delivery date and ship-to location. The need date drives everything downstream, and the ship-to location determines duty exposure.
Next step: confirm package variants and lifecycle status across distributors so the request goes out against parts that are actually buyable.
Doing the Market Work Before Sending the RFQ
The most common failure in the RFQ process is sending the request blind. If you do not know roughly what the part costs, who stocks it, and how long the lead time runs, you have no way to judge whether a returned quote is good, mediocre, or a sign that the part is in trouble.
A short pre-check answers most of these questions. Aggregated distributor data shows which authorized sources hold inventory right now, where the price breaks sit across quantity tiers, what lead times the stocking distributors are publishing, and whether the manufacturer has moved the part toward end of life.
Two useful signals fall out of this immediately. A wide price spread across authorized distributors usually means thin or uneven inventory rather than a bargain waiting to be found. A part that shows stock at only one authorized source is a single point of failure regardless of what the quote says, and the RFQ should go out with an alternate clause attached.
This pre-check also tells you which parts on the bill of materials deserve a real RFQ at all. High-value, long-lead-time, and sole-sourced lines justify the effort. Commodity passives available from six distributors at published pricing usually do not, and quoting them line by line burns time that should be devoted to the parts that carry risk.
Next step: run the risk lines through Findchips first and reserve the RFQ for the parts where the answer is not already on the screen.
Who Should Receive the Request
RFQs should be sent to authorized and franchised distributors for anything going into production. Distributors carry manufacturer traceability, warranty coverage, and access to factory pricing programs. Send to the manufacturer directly when the annual volume is large enough to clear their minimum, which usually means the part is a design anchor rather than a line item.
Independent and open-market suppliers serve a different purpose. They solve allocation, obsolescence, and shortage problems that authorized channels cannot, but they also come with inspection and counterfeit risk that authorized channels do not. That tradeoff is sometimes worth making. What is never worth doing is dropping an open-market quote into the same comparison table as an authorized quote and picking the lower number, because the two prices describe different products with different risks attached.
Three to five recipients is a reasonable working range for a production RFQ. Fewer recipients give you little price discovery. More recipients create a comparison exercise that may cost more than it saves and signal to the market that the part is being shopped hard.
Next step: check which authorized distributors currently stock the part and build the recipient list from there.
Comparing Quotes on More Than Unit Price
Unit price is the number everyone reads first and the least complete item in the response. A defensible comparison normalizes across:
- Order multiples and minimums. A lower unit price at a 10,000-piece minimum against a usage of 6,000 per year is not a lower price. It is 18 months of inventory.
- Lead time against the needed date. A quote that cannot arrive in time is not a quote worth considering.
- Date code and shelf life. Older stock at a discount has a real cost if it sits through a slow build or requires rebaking.
- Cancellation terms. Non-cancellable and non-returnable terms are common on scheduled orders and factory programs, and they convert a forecast into a liability.
- Payment terms, freight, and duty. Terms affect working capital, and the landed cost, including freight and applicable tariffs, can invert a ranking built on unit price alone.
- Quote validity. Most component quotes hold for a limited window, typically 30 days but sometimes less for volatile parts. A comparison assembled from quotes of different ages is not comparing the same market.
Next step: verify current stock positions against the quoted lead times before the award goes out.
Where the Process Breaks Down
Four failures account for most of the damage:
- Quoting a bare part number with no quantity horizon, which gets you spot pricing on a part you will buy for years.
- Forbidding alternates by default, which hides the in-stock equivalent a supplier would have offered.
- Awarding on price without checking whether the winning supplier actually holds the inventory, which turns a completed RFQ into an expedited request three weeks later.
- Letting quotes expire during an internal approval cycle, then issuing a purchase order against pricing nobody is still honoring.
Re-quoting has a cadence of its own. Annual agreements get re-quoted before renewal, but a product change notification, a tariff change affecting the country of origin, or a visible shift in availability all justify going back to the market early.
Next step: monitor availability on the parts you have already awarded so a supply change surfaces before the shortage does.
Frequently Asked Quoting Questions
How long is a component quote valid?
Most component quotes hold for a limited window, typically 30 days but sometimes less for volatile parts. Confirm the validity date on the quote itself rather than assuming, and re-quote if an internal approval cycle runs past it.
What is the difference between an RFQ and a purchase order?
An RFQ is a commercial inquiry asking for price, availability, and lead time. It creates no obligation on either side. A purchase order is the commitment to buy, and supply obligations begin when it is issued and accepted.
Should I allow alternates on an RFQ?
Allow alternates when the design permits it and say so explicitly on the request. A supplier holding the in-stock sibling of a part on allocation cannot offer it unless the request permits it. Where alternates are not acceptable, state that too, so quotes come back against the exact part.
How many suppliers should receive a production RFQ?
Three to five is a reasonable working range. Fewer recipients give you little price discovery, and more recipients create a comparison exercise that may cost more than it saves.