The Request for Quote (RFQ) process varies from company to company depending on your spend and the amount of staff designated to the procurement function.

If you are lucky enough to have a RFQ Software platform integrated into your computer operating system you are one of the fortunate ones. These companies have software which allow the purchasing department to quickly and easily turn an electronic requisition (request from the user group) into a RFQ and spin it out to three or more vendors for P&D (Price and Delivery) without leaving their chair. Most companies do not have this type of functionality and they in turn expect Buyers to retype, cut and paste, email or fax a hard copy to vendors for a quote. In these instances, much of your potential savings could in turn be chewed up by the labor costs dedicated to requesting the quotes.  There are better ways.

The RFQ is the Buyers way of determining present market costs and conditions for item which are needed to run the organization they work for. Typically they are looking for price, delivery, quality, payment terms and specifications on their needs. Often these needs are dictated by a user group or another department which is looking for product for maintenance, repair or operating (MRO) issues.  This is not the only instance where a RFQ is used, this same user group might be looking at a capital purchase of new equipment or other service related needs. The RFQ is purchasing way of keeping a handle on costs for goods and services.

Having a RFQ template for these different types of purchases will help you expedite the time you spend on acquisition and reducing acquisition costs makes your department more effective and lowers cost.  Let us help…we have many different RFQ type forms and templates in our bundles as well we are an eProcurement or eSourcing software provider by way of our RFQPro Software Platform.

If you subscribe to our mailing you will receive our FREE welcome pack of templates which include a couple of standard RFQ forms along with an invitation to bid letter. They are instantly delivered upon confirmation of your address.  If you want more robust RFQ Templates, we recommend you buy either the Purchasing Manager or Mega Pack Bundle. Both contain many sample RFQ forms which can be quickly modified to meet your specific needs to avoid having to start from scratch.

RFQ67-RequestforQuote RFQ2 Preview AppendixB

The benefits of a site supplier audit are many. Having assurances in respect to supply, environmental compliance, safety standards and quality measures are the primary reasons we do them. And finding the right suppliers has never been more important than today. The global recession has added additional pressures on the very survival of many companies.

How do you know that your supplier is capable of meeting their obligations or commitments? You do so by completing a site audit of their production facilities. This is often part of a buyers due diligence with large dollar spend and should be an exercised practice in your buyer / supplier relationship. Note, not every vendor you do business with warrants a site audit. Site audits can be costly when you factor in travel to the manufacturers’ facility and can be time consuming so target vendors which are integral to your supply chain.

A physical audit is the best way to gather reliable information about your supplier’s business practices, capabilities, competitiveness, cost drivers, safety standards and service culture. From these audits you can Read the rest of this entry

A letter of intent, commonly known as a LOI can be used by a purchasing manager to move a tender result forward. You are ready to take the next step with a vendor or supplier in respect to an offer which has been made and it is usually in response to a formal tender, request for quote or request for proposal your company previously issued. A LOI, Letter of Understanding (LOU) or Memorandum of Understanding (MOU) can be used in many different circumstances. A business acquisition, employment offer, supplier services, a contract award to note just a few. This post or letter of intent relates to procurement and how it can be used in the purchasing arena.

Why or when to issue a LOI? Sometimes these offers are complex by nature and involve large dollar spend so rather than stepping into a formal contract, a letter of intent will be issued to give both parties time to iron out all the little details. Read the rest of this entry

How is a notification of award different from a standard award letter you would issue from a purchasing department?  Basically they are the same document as they have the same intent and perform the same functions. In this series of posts we are providing sample letters which can be used in the request for quote or request for proposal award process. This letter would be used when you wish to advise a vendor they have been selected and will be awarded the tender they recently bid on.

Here is a free notification of award sample letter that we use: Read the rest of this entry