Request for quote , Other Management

Request for Quote 

Request for Quote (RFQ), is a standard business process to invite suppliers into a bidding process to bid on specific products or services through Invitation for Bid (IFB). A RFQ seeks information like unit price for the product/material, delivery schedule, payment terms, quality level and special instructions like packing type, packing unit and so on during the bidding process. 

An RFQ should always contain/request the following information: 

  •   The price requirement that includes the fixed price and slab price in some cases. 
  •   The quantities or volumes required. 
  •   The delivery date or the completion date for the goods or services required.  

The confirmation that the supplier can fully comply with the specifications of the items or services. 

  •   The confirmation of compliance with any standards. 
  •   The terms and condition of purchase. 
  •   Terms of payment. 

RFQ is a very important document while purchasing goods and services. Hence, it should cover all the necessary items by including all the relevant drawings, specifications, description of services, and so on. Therefore, RFQ for contracts should elaborate all terms and conditions of contract, both commercial and statutory, in an enclosure attached to the tender forms. The bidders sometimes offer alternative solutions to the specifications tendered, hence they should be invited during the process. The suppliers may have alternative solutions, which will meet the requirements at a lower price. The lead-time of RFQ should be high so that the negotiation process has sufficient time run. A minimum of 3 to 4 potential suppliers will receive the RFQ. A predetermined date must be selected for receipt of quotation, which should be specified in the RFQ. 

The evaluation process will proceed once the quotations are received. This is followed by a discussion on the technical capabilities or to note errors in the proposal. Multiple rounds of negotiations may follow with an aim to generate the best market price. You should make it a point to respond to all the bidder questions without any delay. RFQ?s are standardised/customised to products and services as far as possible, to facilitate computerisation and automation of transactions. An RFQ provides an opportunity to different contractors to provide a quotation, among which the best will be selected.  

Although RFQ for imported material/equipment covers all the parameters listed above, it will have certain unique parameters as it is an overseas transaction.  

Posted Date: 9/28/2012 1:17:57 AM | Location : United States







Related Discussions:- Request for quote , Assignment Help, Ask Question on Request for quote , Get Answer, Expert's Help, Request for quote Discussions

Write discussion on Request for quote
Your posts are moderated
Related Questions
Question 1 Well thought sponsorship will be a powerful positioning device in the hands of Public Relations Practitioners. Discuss. Question 2 "It is more difficult to f

MARC and the Subject Approach   The concept of MARC (Machine Readable Catalogue) has brought in a new era in the field of library and information services. MARC stimulated the

Question 1: (a) Describe, with the use of examples, Lewin's model of organisational change. (b) Explain either the "action research model" developed by Cummings & Huse or th

Network Configurations   The basic components of a single CD-Rom workstation are a microcomputer and a CD-ROM drive. A printer will be necessary if you want to obtain a paper c

What does the word icy has to do with the word remote?

Study carrel -Reader Activity Area of library building -library managenent Study carrels are exclusive areas, located in quieter and undisturbed part of the library, which are

ALPHAETICO - CLASSED CATALOGUE: The alphabetico-classed catalogue may be considered as a combination or mixture of the best points associated with dictionary and classified ca

Question 1 of 16 4.0 Points Six (6) samples of size five (5) were used to collect the data presented below: sample number 1 2 3 4 5 6 sample mean (x-bar) 8.0 8.1

Question: Jaimie and Mary are work colleagues in the support team of a large department at the University. Mary has been on maternity leave and the department was reorganised

INDIVIDUAL ASSIGNMENT BDS2874 – MANAGEMENT DECISION SCIENCE INSTRUCTIONS TO STUDENT 1. This Assignment is an Individual Assignment and consists of 7 pages including c