Why RFQ Design Determines Supplier Behavior and the Reliability of Price Signals in Industrial Sourcing
A mid-sized electronics distributor issues an RFQ for what appears to be a straightforward component batch—same part number, same nominal specification, same delivery window. Within a week, the procurement team receives quotations that vary by more than 40%, not because of market volatility, but because each supplier has interpreted the request differently: one priced premium-grade material, another assumed relaxed tolerances, and a third optimized for volume assumptions that were never explicitly stated. What looked like a routine request for quotation becomes a distorted dataset for supplier selection. This kind of divergence is not an exception in procurement—it is the default outcome when RFQ design fails to encode commercial intent with sufficient precision. RFQ as a Pricing Signal System, Not an Administrative Step At its core, an RFQ (request for quotation) is not just a document used to collect prices. It functions as a structured signaling mechanism between buyers and su...