REQUEST FOR QUOTATION > RFQs >
This section contains utilities that are used to prepare and manage your RFQs.
A request for quotation (RFQ) is a standard business process whose purpose is to invite suppliers to bid on specific products or services, with the desired outcome of lowering the price of the goods or services for the buying organization.
You can create new RFQs in your RFQ Work Area.
An RFQ typically involves more than the price per item. Information like payment terms, delivery time, etc. might also be requested during the bidding process.
To receive correct quotes, RFQs often include the specifications of the items/services to make sure all the suppliers are bidding on the same thing. Logically, the more detailed the specifications, the more accurate the quote will be and comparable to the other suppliers. Another reason for being detailed in sending out an RFQ is that the specifications could be used as legal binding documentation for the suppliers.
RFQs are best suited to products and services that are as standardized as possible, as this makes each suppliers’ quotes comparable.
An RFQ allows different contractors to provide a quotation, among which the best will be selected. It also makes the potential for competitive bidding a lot higher, since the suppliers could be quite certain that they are not the only ones bidding for the products.
When RFQs are processed in SpendMap, they can be sent to your suppliers either electronically or in hard copy format. Pricing from one or more suppliers can then be tabulated, the RFQ awarded to one or more suppliers, and then built (flipped) into one or more Purchase Orders or Requisitions. For more details, see RFQ Lifecycle and Workflow.
