Projects always require supplies, consumables, or support from third parties, and a Request for Quotation (RFQ) is a great help in these situations.
The document communicates its requirements to sellers or service providers.
The seller will review the offer and ask for clarification if required. The buyer usually organizes a bidder conference where all bidders can clear their doubts.
What is a Request for Quotation (RFQ)?
A Request for Quotation or Quote (RFQ) is a document that provides buyers’ requirements to sellers so that sellers can review the requirements and submit their offer with pricing and other terms and conditions.
RFQ也称为BID（IFB）的邀请，并在指定要求时使用。在RFQ中，买家可以要求每项，小时，仪表或其他测量单位的价格报价。
RFQ is different fromRequest for Proposal (RFP). In RFP, the buyer has a problem and asks sellers for creative solutions.
Types of Request of Quotation (RFQ)
You can divide RFQs into many types. A few popular categorizations are as follows:
- Open RFQ
- Sealed RFQ
- Single Source RFQ
- Invited RFQ
Open RFQ
Here, sellers can see each other’s responses and change their bids until the deadline. This encourages competition, and the buyer gets a better price. However, sometimes it may lead to price-fixing among sellers.
Sealed RFQ
This RFQ is common with government and public sector units. The tender is open to all sellers, but bids are sealed and open after the deadline. Though this RFQ provides transparency, you may not get the best price or negotiate it lower.
Single Source RFQ
This RFQ is issued mostly in spare parts purchases where you have a manufacturer and their authorized seller in your region.
Though the quality of the material is top-notch, prices are usually high because of the absence of competition and restricted by a particular manufacturer.
Invited RFQ
在这里，您邀请预先选择的投标列表来节省时间并获得更好的质量工作。它加快了流程，工作质量很好。
Though this method saves time, you don’t get the best offer.
The RFQ Process
A well-defined RFQ process provides complete buyer’s requirements and other terms and conditions, including delivery, payment, inspection, etc., and makes the bidding process smooth.
Most organizations have a predefined template to fill their requirements. This helps them review bidders’ responses quickly.
You can divide the RFQ process into five steps:
- Prepare the RFQ Document
- Define the Vendor List
- 发行询价表
- Receive and review the offers
- Select and award the Contract
#1. Prepare the RFQ Document
The first step is to collect requirements. Ensurerelevant stakeholdersare involved in the collection requirement process.
RFQ可以包含以下详细信息：
- Material technical requirements
- Transport & delivery requirements
- Inspection & payment terms
- Any local regulations
- 引用有效直到为止
- 报价由
- 数量
- Unit price
- Total cost
- Skills
- 培训水平
- Part descriptions
- 合同期限
- Terms and conditions
- 交货日期
- Bulk order discounts
- etc.
#2. Define the Vendor List
This is an optional step, and you may not require it.
您可以指定这些供应商并禁止其他供应商，如果您有任何一些材料或服务的预选供应商列表。
#3. Issue the RFQ
Once you define requirements and get the organization’s approval, you can issue the RFQ with a submission deadline. Give bidders enough time for bid preparation and provide mechanisms to clear their doubts. Ensure all bidders get answers to all clarifications raised by any supplier.
You can organize a bidder conference as well.
#4. Accept Bids and Review Offers
RFQ截止日期后，您将打开投标并检查完整性。如果出价满足要求，您将接受投标。
Afterward, you will go for commercial and technical evaluation.
＃5。选择并授予合同
评估后，如果满足技术要求，则选择最低的出价。如果允许谈判，您可以进行几轮比赛，然后选择最低的报价。
Afterward, you can sign the procurement contract, and this document will be legally binding.
RFQ Example
Below is an example of RFQ.
Why Do You Need RFQs (Requests for Quotation)?
您需要RFQ以负担得起的价格且无麻烦地满足您的项目或组织要求。您可以使用RFQ通过项目调度时间表来满足预算目标。
RFQs are helpful as sometimes you cannot get required material support or consumables on your own, but you can get them easily through third parties. You can use RFQs to buy commodities, consumables, and supplies where requirements are specific and cost estimation is easy.
You can issue RFQs during the project’s planning phase, where the project is broken down to task level and is estimated, scheduled, and monitored to meet the costs and timelines.
Depending on yourorganizational structure, either the procurement manager or the project manager will issue the RFQ. Once the responses are received, they are the ones to evaluate quotations and will finalize the seller.
How to Use RFQs
In RFQs, the seller breaks down requirements to a granular level for cost estimation. Sellers might have to show their calculations to win the contract.
The buyer will evaluate the quotations, and once the contract is signed, he will track the project costs and progress throughout theproject life cycle使用甘特图之类的工具。
Sometimes suppliers are not completely aware of the requirements and can quote abnormally high or low prices; they might also ignore regulations and deadlines. Ensure that they understand all requirements before signing the contract.
Best RFQ Practices
- The supplier must understand the terms and conditions before submitting the quotation.
- The supplier must quote prices as per market prices.
- While estimating, the supplier must understand the skill set needed for resources.
- The supplier must consider resource management data by referring to similar previous projects.
- The supplier must provide proof of technical expertise.
RFQ Tools
There are many open-source templates available. Some open-source products or tools provide an option to integrate RFQs into their tools so that they can be referred to instantly during the procurement process and visualized using甘特图.
Allproject management toolsavailable in the market offer this feature.
Conclusion
The Request for Quotation (RFQ) is a good tool for buyers to get materialist support from contractors at an affordable rate. Though the RFQ can be of many types, you have to choose the RFQ as per your requirements but ensure that requirements are well defined.
您在组织中使用RFQ吗？如果是，请通过评论部分与他们分享您的经验。
