Payment Terms Defined

Payment terms are an area in the RFQ process which is often overlooked or forgotten. Some commonly used payment terms would be Net 30 days, 2%/10 Net 30 days and there are many more.  (To help  get a better understanding we have included a glossary of payment terms you can download for free at the bottom of this post). So, what do these imply and is it something a Buyer should be paying attention to as part of the award process?

When generating a RFQ or RFP, most buyers will place the majority of their efforts on the product, FOB Point and other commercial aspects of the quotation and doing such is absolutely right but one evaluation point which is often overlooked or not considered in the overall award process are the payment terms. Buyers will often accept or assume the standard Net 30 days offered is not worth analyzing.

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Vendor Evaluation Questions

Vendor Evaluation:

vendor_performanceThe process of evaluating vendors is an ongoing task which every purchasing department should be performing at regular intervals. In this process, you are inviting dialogue or communication with your vendors, which is always good.

What types of questions should you ask your vendors? Ask questions directly related to areas which require improvement and do not neglect to mention areas which the vendor is excelling or performing well at.

Remember, the goal is to help your vendor improve their service levels and how they do business with your company. In return, the vendor might even offer something which will make both your organizations more efficient!

In Part A, we have provided a verbal question you might ask during your interview.

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RFQ Sample – Public Purchasing

Public Purchasing:

If you are looking for a detailed RFQ – Request for Quote for the purchase of a piece of mobile equipment and you are in the public purchasing field, this sample RFQ template will expedite the tendering process. This one specifically addresses the acquisition of mobile equipment (Road Grader) but can be used for any major piece of equipment by adding your own equipment specifications, sometimes you can download these specification online directly from the manufacturer.

RFQ67 – Mobile Equipment template is 24 pages and includes a layout you can use to add detailed equipment specifications. Here is a quick look at a few pages of this template.

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RFQ67 template is available in our premium pack offer.