Mastering the Request for Quotation (RFQ) for Green Coffee

You have navigated the complexities of the Vietnamese coffee market. You have identified potential partners and learned to recognize the critical Red flags when choosing a coffee supplier. You are now ready to move from preliminary research to the formal process of soliciting concrete offers. This critical transition is managed through a powerful, standardized tool: the Request for Quotation (RFQ) for green coffee.

An RFQ is far more than a simple email asking for a price list. It is a formal, detailed document that precisely outlines your requirements and requests specific, comparable information from potential suppliers. A well-crafted RFQ is the hallmark of a professional buyer. It demonstrates seriousness, streamlines the comparison process, sets clear expectations from the outset, and forms the foundation for successful contract negotiation with your chosen Vietnamese green coffee beans supplier.

This guide provides a comprehensive, expert-level framework for developing and utilizing an effective Request for Quotation (RFQ) for green coffee. We will dissect the essential components, provide practical examples specific to sourcing from Vietnam, and outline best practices for issuing your RFQ and evaluating the responses. Mastering the RFQ process is fundamental to sourcing with precision, mitigating risks, and building strong, transparent supplier relationships.

Why a Detailed RFQ is Non-Negotiable in Professional Sourcing

In the fast-paced world of commodity trading, skipping the formal RFQ process might seem like a shortcut. However, this is a critical mistake that introduces significant risk and inefficiency. A detailed RFQ serves several vital strategic functions:

Ensures “Apples-to-Apples” Comparisons: By providing all potential suppliers with the exact same, detailed set of requirements, you ensure that the quotes you receive are directly comparable. This allows for an objective evaluation based on price, quality alignment, and commercial terms, rather than trying to decipher vague or incomplete offers.
Sets Clear Expectations: The RFQ clearly communicates your specific needs regarding coffee quality, quantity, packaging, shipping, and documentation. This minimizes misunderstandings and ensures potential suppliers understand exactly what is required before they submit a quote.
Demonstrates Professionalism: Issuing a detailed RFQ signals to suppliers that you are a serious, organized, and professional buyer. This can lead to better responses and more favorable terms, as suppliers prioritize buyers who demonstrate competence.
Provides a Basis for Negotiation: The specific requirements outlined in the RFQ serve as the starting point for negotiation. Any deviations requested by the supplier can be clearly identified and discussed against the baseline you established.
Reduces Risk: Clarity reduces risk. By specifying requirements upfront (e.g., moisture content limits, required certifications, PSS approval process), you minimize the chances of receiving coffee that does not meet your standards or facing unexpected issues during shipment.
Streamlines the Vetting Process: The quality and completeness of a supplier’s response to your RFQ is, in itself, a crucial vetting criterion. It provides insight into their attention to detail, professionalism, and understanding of your needs.

The Anatomy of an Effective Request for Quotation (RFQ) for Green Coffee

A comprehensive RFQ should be structured logically and contain all the information a supplier needs to provide an accurate and relevant quote. While the format can vary, these core components are essential:

1. Introduction and Buyer Information

Your Company: Briefly introduce your company, its business (roaster, importer, distributor), and its general sourcing needs.
Purpose of RFQ: Clearly state that this document is a formal Request for Quotation for specific green coffee beans.
Confidentiality: Include a brief statement that the information provided in the RFQ and the supplier’s response will be treated confidentially.
Contact Information: Provide the name, title, email, and phone number of the primary contact person for any questions regarding the RFQ.

2. Detailed Product Specifications (The Heart of the RFQ)

This is the most critical section. Ambiguity here leads to inaccurate quotes and potential disputes later. Be as precise as possible.

Coffee Type: e.g., Robusta, Arabica.
Grade: Specify the required grade according to a recognized standard (e.g., TCVN 4193:2014 for Vietnam standard – G1, G2; or indicate SCA grading protocol for specialty).
Screen Size(s): e.g., Screen 18 (min 90%), Screen 16 (min 90%), or a specific blend of screens.
Processing Method: e.g., Washed, Natural (Dry Processed), Honey (specify type/level if applicable – Yellow, Red, Black), Wet Polished.
Origin (if specific): e.g., Lam Dong Province Arabica, Dak Lak Province Robusta, Son La Province Arabica. (Be aware that very specific single-farm requests might be better suited for direct negotiation after initial vetting, rather than a broad RFQ).
Crop Year: Specify the desired harvest season (e.g., “Current Crop 2025/2026”).
Key Quality Parameters:
- Moisture Content: Specify the acceptable range (e.g., “10.5% – 12.0% upon PSS approval”).
- Defect Count: Specify the maximum allowable defects based on the requested grade (e.g., “Max 5% black & broken for G2 Robusta,” or “Zero Primary Defects, Max 5 Secondary Defects per 350g for Specialty Arabica”).
- Cup Profile (Optional but Recommended for Specialty): Briefly describe the target flavor profile (e.g., “Clean cup, medium acidity, notes of chocolate and nuts”).
Certifications: Clearly list any mandatory certifications (e.g., “Must be certified EU Organic,” “Must be Fair Trade Certified”).

3. Quantity and Volume Requirements

Specific Quantity: State the exact quantity you wish to quote for this specific RFQ (e.g., “1 x 20ft container, approx. 19.2 Metric Tons,” or “50 bags / 3,000 kg”).
Potential Annual Volume: Indicate your estimated total annual requirement for this type of coffee. This helps suppliers understand the potential scale of the business relationship.
Shipment Frequency: If applicable, mention your expected shipment frequency (e.g., “Quarterly shipments,” “One shipment per month”).

4. Packaging Requirements

Bag Type: Specify the required bagging (e.g., “New Jute Bags approx. 60kg net,” “Jute Bags with GrainPro liner,” “Bulk bags”).
Markings: Specify any required markings on the bags (e.g., Your company name, Lot number, Origin, Net Weight).

5. Shipping and Logistics Requirements

Incoterms® 2020: Clearly state the desired Incoterm (e.g., “FOB Cat Lai Port, Ho Chi Minh City“). FOB is generally recommended for buyers who want control over shipping.
Port of Loading: Specify the preferred port in Vietnam if you have one (usually Ho Chi Minh City ports like Cat Lai for Southern coffee, or potentially Hai Phong for Northern Arabica).
Shipment Period: Provide a clear window for when you require the coffee to be shipped (e.g., “Shipment during December 2025,” “Shipment within 30 days of contract signing”).
Destination Port: Inform the supplier of the final destination port (this helps them anticipate documentation needs).

6. Quality Assurance and Sampling Requirements

Pre-Shipment Sample (PSS): State your requirement to receive and approve a PSS drawn from the final, ready-to-ship lot before shipment authorization. Specify the required PSS size (e.g., 500g).
Third-Party Inspection (Optional): Indicate if you reserve the right to appoint an independent third-party inspection company (like SGS, Intertek, Vinacontrol) to verify quality and/or weight at origin, potentially at your cost.
Quality Acceptance Criteria: Reiterate that final acceptance is subject to the shipped coffee matching the approved PSS and contracted specifications.

7. Pricing Requirements

Price Basis: Request the price per unit (e.g., USD per Metric Ton, USD per kg, USD per lb) based on the specified Incoterm (e.g., FOB).
Currency: Specify the required currency for the quotation (almost always USD).
Price Validity: Request the supplier to state how long their quoted price will remain valid (e.g., “Price valid for 7 working days”).
Differential (Optional/Advanced): If you are experienced and trading against the futures market, you might request the supplier to quote only the differential (e.g., “USD +/- London LIFFE Nov Contract”).

8. Payment Terms

Indicate Preference: State your company’s preferred payment terms (e.g., “30% TT upon contract, 70% TT against copy of shipping documents,” or “Payment via irrevocable Letter of Credit at sight”).
Request Supplier Terms: Alternatively, ask the supplier to state their standard payment terms.

9. Required Documentation

List the standard set of Documents required for importing coffee from Vietnam that the supplier must provide (e.g., Commercial Invoice, Packing List, Full Set Original B/L or Telex Release, Certificate of Origin (specify type if needed, e.g., EUR.1 for EU), Phytosanitary Certificate, Fumigation Certificate, relevant Quality/Weight Certificates, specific Certification documents (Organic TC, Fair Trade cert)).

10. Submission Instructions

Deadline: Provide a clear, specific date and time (including time zone) by which the quotation must be submitted.
Submission Method: Specify how quotes should be submitted (e.g., “Via email to [email address],” “Via online portal [link]”).
Contact for Questions: Reiterate the contact person for any clarifications needed by the supplier before the deadline.

Crafting the Specification Section: Precision is Paramount in Your Request for Quotation (RFQ) for Green Coffee

The quality and usefulness of the quotes you receive are directly proportional to the clarity and detail of your product specifications. Use quantifiable metrics and recognized standards.

Example Specification – Commercial Robusta:

Product: Vietnam Robusta Green Coffee Beans
Grade: Grade 1 (TCVN 4193:2014)
Screen Size: Screen 16, min 90%
Processing: Wet Polished
Origin: Dak Lak Province
Crop Year: 2025/2026
Moisture: 11.0% – 12.5% (at time of PSS approval)
Defects: Max 2% black & broken, Max 0.5% foreign matter
Certification: Rainforest Alliance Certified

Example Specification – Specialty Arabica:

Product: Vietnam Arabica Green Coffee Beans
Grade: Specialty Grade (SCA Protocol)
Screen Size: Screen 16+, min 90%
Processing: Fully Washed
Origin: Son La Province
Crop Year: 2025/2026
Moisture: 10.5% – 11.5% (at time of PSS approval)
Defects: Zero Primary Defects, Max 3 Secondary Defects per 350g
Target Cup Profile: Clean cup, bright citric acidity, notes of jasmine and tea, light body. Target SCA Score: 85+
Certification: EU Organic Certified (Require valid certificate and TC)

Best Practices for Issuing and Managing Your RFQ

Targeted Distribution: Send your RFQ only to suppliers you have already pre-qualified through initial research and vetting (those who passed your initial “red flag” checks). Sending RFQs blindly is inefficient.
Professional Format: Present your RFQ in a clean, professional document format (e.g., PDF).
Allow Sufficient Time: Give suppliers a reasonable timeframe (e.g., 5-10 working days) to prepare a thoughtful and accurate quotation.
Respond to Questions: Be available to answer clarification questions from suppliers promptly and consistently (share answers with all bidders if the question is relevant to everyone).
Acknowledge Receipt: Acknowledge receipt of each quotation as it arrives.

Evaluating RFQ Responses: Beyond the Price Tag

Receiving the quotes is just the beginning. A strategic evaluation looks beyond the bottom-line price.

Vietnam Green Coffee Beans: Characteristics and Quality

Completeness: Did the supplier address all sections of your RFQ? Did they provide all the requested information? An incomplete response is a red flag regarding their attention to detail.
Compliance: Does the quoted coffee exactly match your requested specifications? Note any deviations clearly.
Price Competitiveness: Compare the FOB prices, ensuring you are comparing identical specifications and Incoterms. Analyze any differences in differentials if applicable.
Price Validity: How long is the price offer valid? Is it sufficient time for you to make a decision?
Payment Terms: Are the proposed payment terms acceptable and manageable for your company’s cash flow?
Lead Time/Shipment Period: Can they meet your required shipment window?
Professionalism & Clarity: Was the quotation presented professionally and clearly?

RFQ Response Red Flags: 🚩

Significantly incomplete or missing information.
Quoting a different product than requested without clear explanation or offering an alternative.
Prices that are outliers (either far too high or suspiciously low) compared to other quotes for similar quality.
Unreasonably short price validity periods or excessively demanding payment terms.
Poorly formatted or unprofessional quotation document.

The Request for Quotation (RFQ) for green coffee is a foundational tool in professional procurement. It establishes clarity, facilitates objective comparison, and sets the stage for a transparent and successful sourcing relationship. By investing the time to create a detailed and precise RFQ, you empower yourself to make better sourcing decisions and significantly reduce the risks associated with international trade.

Once you have received and evaluated the RFQ responses, you will have a much clearer picture of which suppliers are truly capable and competitive. This crucial information feeds directly into the next, deeper stage of due diligence: the comprehensive process of How to vet Vietnamese coffee suppliers based on their formal offers and stated capabilities.

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