A formal request for pallet pricing from suppliers, typically specifying quantity, dimensions, treatment, and documentation.
Detailed Definition
An RFQ, or request for quotation, asks several suppliers to price the same defined item so their quotes can be compared on equal terms. For pallets, a useful RFQ states the footprint, design, materials, condition or grade, treatment, quantities, delivery schedule and paperwork required. The more precisely the pallet is specified, the less suppliers have to guess and the more comparable the prices. A pallet RFQ usually leads to a purchase order with the chosen supplier.
What a pallet RFQ should specify
- Footprint and overall height, for example 48 x 40 inches.
- Design: stringer or block, two-way or four-way entry, single or double-faced, number and size of deck boards.
- New or recycled, and the condition grade in writing if recycled.
- Lumber species group, and any moisture or kiln drying requirement.
- Treatment and marking, such as ISPM 15 heat treatment for export.
- Required load capacity and how the pallet will be used: floor, forks, rack.
- Annual and per-delivery quantities, delivery location, dock type and schedule.
- Documents needed, such as treatment certificates.
RFQ versus RFP and RFI
An RFQ is used when the buyer knows exactly what it wants and mainly needs price and terms. A request for proposal asks suppliers to suggest a solution, such as a redesigned pallet or a pallet management program. A request for information is a first step to learn what suppliers can offer before a formal request.
Comparing the replies
Line up quotes on the same basis: unit price, freight, minimum order, lead time, price validity period and payment terms. Ask for samples from the leading bidders, and check that each quote meets every line of the spec rather than a cheaper substitute.
Related Glossary Terms
Frequently Asked Questions
How many suppliers should receive a pallet RFQ?
There is no fixed rule. Enough suppliers to get a real price comparison, usually a few, but not so many that you cannot evaluate replies and samples properly. Include suppliers who can actually serve your delivery locations and volumes. For critical items, consider a primary and a backup supplier, and send both the same RFQ so their quotes are comparable.
What is the most common mistake in pallet RFQs?
Leaving the specification vague. A request for a 48 x 40 pallet at a quantity invites quotes for very different pallets, from light one-way units to heavy block pallets, so the prices cannot be compared. State the design, board dimensions, condition grade, treatment and capacity needs, and attach a drawing if you have one. Ask suppliers to state any deviations in writing.