Letter Archives

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 only 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, 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

Rejection Letter RFP

A rejection letter is another term used by purchasing personnel as part of the notification process in a post tender scenario. In essence, you are notifying  unsuccessful bidders that they will not be awarded the business. It is a respectful and formal way of providing closure much like an award letter or how a notification of award is used but unfortunately for the opposite reason. 

They inform all the Vendors of your position in respect to the bid. Issuing an award is the fun or pleasant part of this task and completing rejection letters are not so fun however we will attempt to explain why they are important.

Why is this important?  If you consider the recipients position, manpower and scheduling needs then you can quickly appreciate the importance of  releasing the Vendor if they are not required.  Regardless of whether it is for supply of materials, manufacturing requirements or service related work it is still the same. It is both respectful and prudent to efficiently review all bids during the tender process and not permit it to drag out for 3 months.

Vendors  are partners in your supply chain and they do incur a cost when  submitting a bid to your issued RFQ or RFP. It is a professional courtesy to always inform bidders of either award or rejection and it is important to be on good terms as you do want them to participate in future tenders of a similar nature. So, a simple rejection letter can go Read the rest of this entry

Sample Request for Quote Cover Letter

When you decide to issue a request for quote (RFQ) it is customary to include a cover letter. RFQ is the short form terminology used by purchasing people for a request for quote and if you are interested in portraying a professional image you should expect to spend some time and effort on your cover letter. In many cases it is the first impression you will make with your vendors so make sure it is formatted correctly and in business like manner with all the appropriate blocks (address, signature). Make sure it calls attention to the subject at hand and including all your contact coordinates is mandatory.

It is usually delivered on corporate letterhead, with a date, vendor address, contact person, title and reference (subject or tender #). You can request an acknowledgment so you can confirm all bidders are in receipt of your documentation and your cover letter will then typically end with your name and title.   Here is a sample set of text you can use for a cover letter or invitation to quote letter. This request for quote cover letter template, as well as several other very beneficial procurement related forms are included in our free welcome pack…subscribe and it will be delivered directly to your email inbox digitally in Microsoft Word format. Read the rest of this entry