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
SCREENING INFORMATION OR STEPS : Some of  the references identified may not be relevant, readers  can usually judge  the  relevance  of the  reference quickly based  on abstra

RUNG PROCESS   In a library we classify and catalogue a book after it is acquired and entered in the Accession Register. After cataloguing the book, the entries will be filed i

QUESTION World heritage sites are identified as sites of outstanding global values that should be preserved for all humanity. Sites will be preserved for future generations and

Non Probability Sampling: Convenient sampling or accidental sampling entails the use of the most conveniently available people  as  subjects  in  the  study. Quota sampling ar

Case Study:  In a case study the survey  is based on one or more samples. Study on the  respondent(s) can be  investigated in  depth, which  is not possible with  large number of

Q uality control tools Most of the quality control tools are usually available to the project team. The Quality control methods are ways of checking. It may involve the applic

QUESTION 1 Explain each of the following concepts- (a) PESTEL analysis of the macro-environment (b) Porter's five forces (c) Value chain analysis QUESTION 2 Th

Need for Several Entries   A library catalogue can just meet any one type of user's approach like author approach, title approach, etc. We can also prepare catalogues, which ca

Question 1: How will IVRS revolutionize clinical trial process? Describe IVRS system Brief explanation on IVRS system Explain the role and application of IVRS sys

P roject quality management process Project quality management consists of four main processes: Quality Definition. Quality Assurance. Quality Control. Qua