Companies use a Request for Quotation document to obtain information from suppliers and vendors for goods or services.
This article will look at what an RFQ means, its advantages, and the steps to create one.
RFQ documents contain extensive details on corporate demands, such as technical requirements, contract size, labour requirements, and merchandise quantities. After the RFQs are prepared, the procurement business distributes them to possible vendors, who respond with quotations based on the specifications. OneBusiness RFQ allows vendors to log into the ERP and submit the quotation securely. Alternatively, vendors can send the quotation through email with a pdf attachment. OneBusiness ERP can read (OCR) the attachment and fill in the evaluation form.
After the company receives the quotations, it can then select the vendor that best suits its requirements.
Here are some of the six major processes that make up the RFQ process.
Here are the steps of theexcellentRFQ process:
Firstly you present your requirements and conditions in length; the document will include many of the following factors:
Terms of payment
Quantities of goods
Estimated hours of labour
Length of the project
Terms of contract
Requirements of Quotation submission
Create a vendor list by gathering all the necessary contact details. You’ll choose a few vendors or suppliers, but first, it’s important to research other companies to send your RFQ document.
This step is simply easy, but make sure you have stable processes to support it.For example, before the RFQ is sent out, make sure to lay clear instructions on how it is meant to be completed and the deadline for submissions. Also, build a FAQ well before to save you time when potential bidders come back with their queries.
This step may also seem easy, but organized processes are required to manage a fair and well built RFQ process.
Keep track of all responses and submissions from the vendors, send the acknowledgement receipts, and remind respondents of the timeline to send notifications to the selected vendor.
Now after careful review of your committee, select the vendor and offer the contract. Again, review the submissions carefully and mainly make sure that the contenders satisfy the needed requirements for the project.
Use a stable template to compare the pricing of vendors’ quotations and select the cheapest or best.
Once you’ve decided on the winning vendor, make sure to thank the unsuccessful ones for their time. After you’ve double-checked that everyone is on the same page about the contract, close the final agreement.