Request for Quote in Procurement & Vendor Management
Businesses that mostly need a product or service with expected standard regularly can use this module to ask potential suppliers / vendor to submit their price quotations. After quote submission, buyer can view quote & choose the vendor that best matches its criteria for the goods or services. This Request for Quote Module equips buyer company to compare, evaluate each separately and accept a supplier, negotiate with vendor, keep hold of the vendor regardless of acceptance or rejection of it by buyer.
In today’s complex global supply chain, digitalizing this RFQ process will support procurement teams to know each supplier / vendors distinctive capabilities. Especially this supplier database enables companies to obtain competitive quotes from multiple vendors and make fine decisions The RFQ process typically involves several steps, including creating and distributing the RFQ, receiving and evaluating quotes from vendors, and selecting the vendor.
RFQ process consists of the following
The preparation phase
Buyers procurement team can create and send an RFQ to selected vendors or multiple vendors for procuring a product or service. When creating an RFQ, companies can specify the product or service they need, the desired delivery date, and any other relevant information. The RFQ can be sent to a pre-selected list of vendors, or can be broadcast to all vendors in the vendor management software database.
The processing phase
- View pending reply from vendor
- Negotiate for revised rates
- Respond Negotiation
- Accept vendor shared quote
- Responded-On Hold
- Regret the RFQ
Closing phase
Once quotes have been received, they can be evaluated using a variety of criteria, such as price, delivery time, quality, and vendor reputation. Vendor can enter the new price with their remarks, on buyer acceptance of the vendor quote negotiation will get closed. The vendor management software allows organizations to easily compare quotes and select the winning vendor based on a variety of criteria.
- Create RFQ by Buyer
- Submit Quote by Vendor
- Evaluate and Compare Quote by Buyer
- Approve Quote by Buyer
The RFQ process help organizations save time and reduce costs by streamlining and automating the procurement process. Additionally, by centralizing the procurement process in vendor management software, organizations can gain better visibility into their spending and vendor relationships, and can make more informed purchasing decisions.
Overall, RFQ in vendor management software is a valuable tool for organizations looking to streamline and optimize their procurement process, and to improve vendor relationships and outcomes.
