Understanding What RFQ is and How To Make It

A business needs the best system in the management and the procurement which orders, offers and purchases are included.

There is the best way to do for a company which has certain calculations in procurement, it is using RFQ or Request for Quotation. RFQ makes the procurement exactly done. 

Let’s find out what RFQ is and how to make it.

RFQ Definition

RFQ is a process in a company in making orders by buyers to the vendor. This process purpose is to get the best exact offer based on the specifications and calculations.

The offer order contains the product detail whether it is a good, service or even project. Then, the vendor will adjust the specifications to the calculation. So, RFQ is focused in cost estimation needed due to the offers

The Benefits of RFQ

There are some benefits you will get if you apply RFQ

1. Effective and Efficient 

RFQ is effective because all goods needed are implied on the offer sheet. So it can make it easier for the vendor to provide the goods or services.

2. Risk Reduction

There are a lot of harmful risks between vendor and company that are possible to cause cancellation, price changing, availability, etc. it makes RFQ is important to prevent such things.

3. Make the Procurement Easier

A company can make a massive purchase without worrying about the availability. Because you will be assisted to find good or service you need.

4. Saving Time

RFQ can save your time in the long process steps such as choosing a product, choosing a vendor, getting to know the location, etc. You just need to write what you need properly and you will receive something you have ordered.

How to Make RFQ?

RFQ is commonly done in the early procurement process. After it is done, the vendor will give you the goods, services or projects list. Then what do we need to put in the RFQ?

1. Specifications or the Detail Price of Goods, Services or Projects.

Write it correctly and completely

2. Imply the Specific Goods or Services

You must imply the specifications to make sure that all suppliers make the correct offer. More specifically, the order will be more accurately done.

In addition, specifications can be used for legally bound documentation 

3. Vendor must write the specific information about the vendor

A vendor which has received the RFQ usually writes the specific informations

  1. Vendor Experience

  2. Flexibility

  3. Track Record

  4. Other information about capability in doing project

RFQ is not a certain offer from a vendor. There is no contract during the progress. It means a company can propose to another vendor if they don’t get agreement with the previous vendor.

If you need a business app with RFQ features with an easy, integrated, and automatic system, you can get it by consulting your business needs with us. We will sincerely assist you.

Consult your all business digitalization needs with us now!

Understanding What RFQ is and How To Make It
Satria Wisnu Aji 18 November, 2022
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