RFQ Checklist
A request for quote (RFQ) is a formal document you send to potential suppliers to get a quote for your part/sub-system/product. An RFQ should include a very detailed set of specifications, bill of materials, and product designs. This list describes some of the items that should be included in the RFQ. When getting quotes, you should insist on an open-book quote in which you get a breakdown of each cost element in the BOM, all overhead charges, and a detailed breakdown of all NRE charges.
Information you provide the supplier in your RFQ
Information about the business
- Information about the company – e.g., revenues, expected sales, marketing information, and press releases
- Description of the product, its functionality, and photos and videos of any working prototypes
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Product definition
- Bill of materials
- Manufacturing methods for fabricated parts
- Assembly and part drawings
- Color, material, and finish (CMF) document
- …
The scope of the NRE to be executed by the supplier
- DFM activities
- Design responsibilities: PCBA, mechanicals, firmware, packaging
- Number of pilot runs and number of samples in each
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Quality testing requirements
- Quality targets (AQL levels)
- Quality test plan (pilot and production)
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Other
- Exclusion clauses to prevent the supplier from building the same product for a competitor
- Distribution requirements
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Information you should ask the supplier to provide
Costs
- BOM costs by part
- Overhead costs (labor, profit, scrap, etc.)
- COGS
- Landed costs (if they are handling distribution)Payment amounts and timings
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Financial terms
- Payment terms for tooling and NRE costs
- PO timing and payment terms
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Requests for other information
- Cost-down sharing policy
- Volume pricing
- IP protection methods
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