Evolution of the RFQ

Evolution of the RFQ:

Acronyms are becoming a part of everyday purchasing lingo. Here are just a few we are becoming accustomed to: TCO, RFQ, RFI, RFP, LOU, LOI, ABC, SPC. It does seem like every year there is a new term being introduced into the purchasing arena. For the experienced purchasing agent, the most familiar of the above terms would be the RFQ and it is a document which has evolved and become more complex over the years.

Well TCO is Total Cost of Ownership, SPC is Statistical Process Control and it is used in manufacturing, ABC relates to classification of your inventory and RFQ is a Request for Quote.   The good old RFQ which all of us COP’s – Crusty Old Purchasers understand very well as it was the only document utilized in early purchasing. A request for quote has been around the longest and in the old days everything went out or was issued as a request for quotation or quote. It was sometimes called an invitation to quote or invitation to tender and these both are part of the RFQ family.

Then came the RFP which is a request for proposal. This is where the vendor

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RFP for LTL Freight Services

RFP for LTL Freight Services:

truck_servicesSelecting a freight broker or transportation service provider is one of the most important decisions you will make for your organization.
Why? Because in the event orders are not delivered on-time you will have potentially lost a customer if you are a supplier and if you are a buyer you could be in for production delays which equate into profit loss. Like it or not freight shipping services can make or break your business and they are an integral part of the supply chain.

The Bureau of Transportation Statistics in the USA reported that the trucking and transportation market on a typical business day ships approximately 43 million tons of merchandise, valued at about $29 billion, moved almost 12 billion ton-miles on the nation’s interconnected transportation network.  These statistics imply the significance this industry sector has in regards to transporting our goods. In fact, if it is shutdown for any period it can cripple a country and your business.

Designing a request for proposal for Less than Truckload (LTL) services might include some of the following details:

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Vendor Contracts

Vendor Contracts:

vendor_contractThere are many types of vendor contracts a purchasing manager will encounter in their day to day tasks. Service, consultant, supply,  inventory, blanket order, equipment, standing order contracts just to name a few. All are different and each one is unique in respect to what you are trying to accomplish.

Service Contract – This vendor agreement might be used for a contract employee providing a specialized service to your organization. The focus of the service agreement would likely be the hours of work, hourly rate and actual service areas this individual would be responsible for.