Why would a business request a 'Request for Quote' (RFQ)?

A business would request a 'Request for Quote' (RFQ) primarily to gather pricing information from potential suppliers. An RFQ is a standardized document sent to suppliers to solicit competitive pricing for specific products or services. This process enables the organization to evaluate the costs associated with different suppliers, compare pricing structures, and make informed decisions on procurement.

RFQs often include precise specifications of the goods needed, which helps suppliers provide accurate quotes based on the organization’s requirements. Additionally, the RFQ process fosters competition among suppliers, which can lead to better pricing and terms for the business.

The other options do not align with the purpose of an RFQ. For instance, formally placing an order for products entails a different process, usually involving a purchase order. Confirming membership in a networking group or documenting on-hand inventory levels relates to administrative functions outside the scope of a purchasing process, which RFQs are specifically designed for. Thus, option A encapsulates the primary use of an RFQ in procurement practices.