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. (more…)