When do organizations typically issue a Request for Quotation (RFQ)?

Organizations typically issue a Request for Quotation (RFQ) when they are seeking competitive offers from vendors. This process is a crucial step in procurement, as it allows companies to gather various price proposals and terms from different suppliers for specific goods or services. By issuing an RFQ, organizations can compare the offers side by side, ensuring they make informed purchasing decisions based on cost, quality, and service parameters. This competitive bidding process also encourages suppliers to provide their best prices, fostering a competitive market environment.

The other options, while related to procurement processes, do not specifically define the primary purpose of an RFQ. Tendering contracts is more about formalizing agreements rather than requesting price quotes, negotiating discounts pertains to existing contracts rather than initiating new price competition, and launching new product lines involves different strategic considerations rather than merely soliciting pricing information.