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What is RFQ ?

  • Jun 1
  • 1 min read

Updated: Jun 3

Definition

RFQ (Request for Quotation) is a formal document used by shippers to request freight rates from transportation providers for specific transportation lanes or logistics services.

In logistics procurement, an RFQ allows shippers to compare pricing and service conditions from multiple carriers before selecting the most suitable supplier.

Purpose of RFQ

  • Collect competitive freight rates

  • Compare transportation providers

  • Benchmark market pricing

  • Improve procurement transparency

  • Support carrier selection

Typical RFQ Information

An RFQ may include:

  • Transportation lane details

  • Origin and destination

  • Shipment volume

  • Service requirements

  • Contract period

  • Pricing format

RFQ Process

  1. Shipper prepares the RFQ.

  2. Carriers receive the RFQ invitation.

  3. Carriers submit quotations.

  4. The shipper evaluates the bids.

  5. The contract is awarded to the selected carrier.

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