Request for Quotation (RFQ): obtain formal quotations digitally

An RFQ addresses a specific request to potential, pre-selected suppliers. These should offer their price conditions in competition with the tender - the result is the best offer from this group of addressees.

However, this requires the offers to be comparable. As a result, an RFQ is ideal when standardized products or services are required. For these, the RFQ contains all the parameters of the intended procurement.

The above-mentioned standardization of the tendered products/services means that the bids are easily comparable. In fact, the contract may already be awarded at this stage. However, individual procurement regulations may provide for further bidding rounds (this is not the case in public procurement, which generally allows one round depending on the award procedure).

Depending on the design of the inquiry, all parameters relevant to the offer are visible. In this case, the suppliers contacted submit corresponding quotations. In order to provide all required information in a binding manner, digital RFQs from DIG can be structured in such a way that this information is mandatory (or optional) when submitting a quotation.

Essential components of a quotation are generally

- Prices

- realizable delivery dates (and quantities, if applicable)

- terms of payment, rebates, discounts, bonuses, etc.

- freight and delivery conditions

- legal framework conditions (in particular the question of whose general terms and conditions should apply)

In the case of a framework agreement , additional contractual components must regularly be regulated or taken into account in the offer:

- Contract duration and renewal options

- Minimum purchase quantities

- Non-disclosure agreements

- Standard delivery times

- Contractual penalties and default penalties

RFQ processes are at home in both strategic and operational purchasing. The benefits of connecting to the company's ERP via an interface therefore offer great advantages in both areas. For example, existing article and drawing numbers can be transferred to the RFQ and, conversely, quotation parameters such as prices and delivery times for each individual product offered can be fed into the ERP. Thanks to the format specified by the system, all relevant data is processed without loss.

This type of interaction between the RFx process and the ERP also supports the mapping of conditions in the actual contract design. The automated transfer massively reduces the formal errors and time losses that often occur in the manual process.