RFQs supports the full business process to solicit quotes from suppliers. The suppliers' responses to the RFQ allow the buyer to compare quotes and negotiate the best price and specifications for the good or service. RFQs enable buyers to collect quotes from suppliers for complex and hard-to-define items or services. Once suppliers have submitted an initial round of quotes, buyers can review quotes and award the RFQ or submit a modified RFQ for another round of quoting.
The RFQ process usually lasts days or weeks through multiple rounds of negotiations.
RFQ is typically used for complex items or services such as made-to-order manufacturing items or construction projects.
RFQs typically consist of multiple rounds with competition focused on whether supplier(s) can meet the specific requirements.
RFQs supports both blind and sealed RFQs. Suppliers cannot view competing quotes while the negotiation is in progress.
Steps in the RFQ process include:
RFQ creation Buyers initiate RFQs that may include multiple line items by publishing the RFQ and inviting suppliers.
Quote preparation and submission Suppliers view the RFQ details and submit their quotes online.
RFQ monitoring Buyers can monitor real-time quote activity and take appropriate action.
RFQ modification or awarding Buyers analyze the quotes and either award the RFQs or modify the RFQs and open them for another round of quoting. Once the RFQ is completed, suppliers are immediately notified of the results via online notifications.
RFQ Capabilities
Manual extend and early close features
Multiple RFQ styles: blind or sealed
Monitoring quote activity in realtime
Purchase order generation
Real-time status updates
Notes and attachments
Online or offline awarding capability (spreadsheet awarding)