Supplier requests and quotations

A useful supplier quotation identifies the product offered, what the price includes, when goods can be ready and which questions remain open. Send every candidate the same dated request, then compare written responses against it before choosing an offer. A price beside a product name is not enough to commit to an order.

Choose the right request

An early enquiry can establish whether a supplier can offer the product, quantity and timing you need. Ask for an indicative response while important details remain undecided. Once the product version and essential requirements are clear, issue a request for quotation (RFQ) with a response format that makes offers comparable.

Identify the buyer’s contact, the response deadline and whether the request is exploratory or intended to support a purchase decision. State which details suppliers may propose as alternatives. Do not let an alternative silently replace the item you asked them to price.

Check whether a public-sector template applies

For a South Australian public authority, the Request for Quote (RFQ) template dated 1 July 2024 says all questions in Part C Section 1 must be applied to procurements valued above $55,000 (GST inclusive). Check that instruction when using the template for such a procurement.

Australian Procurement Thresholds and Compliance Requirements

Give every supplier the same basis

Provide a dated product specification, variants and quantities by line, packaging requirements, Australian destination and desired timing. Ask suppliers to identify departures from the brief beside the affected line. If a requirement is unresolved, say so and ask what assumption the supplier used to price it.

For consumer products intended for supply in Australia, check potentially applicable mandatory standards and bans for the actual goods. Some mandatory standards cover packaging or labelling. Ask what evidence relates to the quoted version, and keep the compliance decision open until it has been assessed. A supplier’s general assurance is insufficient.

The ACCC says businesses supplying consumer products in Australia are legally responsible for product safety, including for products without mandatory safety requirements. Mandatory standards and bans apply to specified products. Check the requirements for the goods being quoted rather than assuming every product has a mandatory standard.

Where a mandatory standard applies, its requirements may concern performance, composition, contents, manufacturing or processing, design, construction, finish, packaging or labelling. Mandatory information standards can also require consumer information, such as ingredient labelling for cosmetics or care labelling for clothing and textiles. These are different kinds of requirements to check against the quoted product.

Ask for written evidence tied to the quoted version, such as copies of product test reports or third-party certification. The ACCC recommends reports from accredited test bodies or laboratories where possible; testing can be commissioned from reliable, independent and preferably accredited laboratories. A certification agency can also assess a product and provide written certification of compliance with safety standards.

Pre-Order Verification Checklist for Australian Suppliers

Ask what the price buys

Request the unit price, currency, minimum order, quantity breaks, setup and other fixed charges, payment schedule, quote validity and treatment of changes. Specify whether samples, artwork, retail packing, testing or inspection are included. Ask for selectable work on separate lines so the base offer remains visible.

For imported goods, request the proposed delivery rule and precise named place, plus a list of services included in the price. Incoterms 2020 can allocate specified obligations, costs and risk when incorporated into the agreement.

These rules do not set the product specification, payment currency or remedies; confirm those separately. An offer ending at an overseas dispatch point cannot be compared directly with one delivered to your Australian receiving point without accounting for the remaining work.

When checking a quoted Incoterms® rule, note who arranges carriage or insurance and who obtains shipping documents or export and import licences. Also record where and when delivery occurs for risk-transfer purposes, and which party bears the costs covered by the rule. These details help explain differences between offers with similar prices.

Compare responses before negotiating

Use one row per supplier and product version. These fields expose differences without turning an unknown into a zero:

Mark a field unconfirmed when it is missing. Seek a revised written quotation where a difference could change the decision.

Compare a common product, quantity and delivery boundary; estimate remaining freight or other charges separately and label their source. If prices are in different currencies, convert them on one stated comparison basis and check the payment provider’s applicable rate and fees before committing.

Turn the selected quote into an order

Confirm the accepted product version, quantities, price, currency, payment dates, delivery arrangements and responsibilities in the purchase order or contract. Identify which quotation and approved changes it incorporates. A trade term alone will not settle ownership, quality requirements or what happens if goods are late or defective.

Keep the unsuccessful responses and comparison record. They show why an offer was chosen and which assumptions still need checking. Supplier verification, sample approval, landed-cost calculation and final product compliance remain separate decisions.