This test post was generated to report on our Request for Quote Software which has officially launched and can be found at our new site.
Our on-line RFQ Software expedites cycle times and manages the procurement process from start to finish.
Helping professionals management the procurement process
This test post was generated to report on our Request for Quote Software which has officially launched and can be found at our new site.
Our on-line RFQ Software expedites cycle times and manages the procurement process from start to finish.
RFQ is the acronym for Request For Quote or Request For Quotation. An RFQ is a request a company tenders when they have a material or service requirement; the RFQ is basically their way of encouraging Vendors to provide a bid for their requirement. The purpose is to provide a fair evaluation for all bidders and to provide the candidates with the evaluation criteria against which they will be judged. A secondary intention, is to encourage competition amongst the bidders which will help the buyer achieve the best possible bid and cost that suits their existing requirements. The company that issues an RFQ then selects one of the bidders to complete the material or service requirement. In today’s business world it is not always about the price, other factors such as quality and delivery often take precedence over cost. Another angle or use for a RFQ is when a business includes a RFQ form on their website. This allows potential customers to contact them to request prices on services or products. An online RFQ form may help to encourage viewers to make a purchase, as it solicits action instead of passive Internet browsing.
Another term frequently used is Request For Proposal, or RFP. Although the difference in terms can be confusing, an RFP and an RFQ are basically the same: an invitation for a potential supplier or vendor to submit a bid. Although the idea of an RFQ is fairly simple, it is still a business document, and as such is divided into several important sections:
There are many free RFQ template examples available online. It is best to attempt to find one that is industry specific which will carry more pertinent terms and conditions relating to your field and to your needs.
A request for proposal (RFP) is basically a publication of detailed requirements by a prospective buyer in order to solicit vendor quotations. A request for proposal may be issued to select any kind of products (tangibles) and services (non-tangibles). The purpose of the RFP is to provide a fair evaluation for all candidates and to provide the candidates with the evaluation criteria against which they will be judged. The RFP is a tool that helps the buyer select a vendor which best fits the bid requirements.
Thus, the RFP is seen as the bridge between expressed needs and solutions sought.
RFP is also known as: request for proposals, request for bids, request to bid, invitation to bid, ITB, invitation to tender, ITT, invitation to quote, ITQ, invitation for bids, IFB and request for quotation, RFQ.