Company standard purchasing process and documents
A request for quotation (RFQ) is a business process in which a company or public entity requests a quote from a supplier for the purchase of specific products or services. RFQ generally means the same thing as Call for bids (CFB) and invitation for bid. In the Buying Portal you can set up templates for these processes. The purchasing officer can decide if the RFQ process should be public (RFB) or private, selecting one or more Vendors to engage in an quotation process.
A RFQ typically involves more than the price per item and can be product-group or service group specific. Information like payment terms, quality level per item or contract length may be requested during the bidding process. Documents can be attached and communicated about through the vendor Portal.
A request for proposal (RFP) is a document that solicits proposal, often made through a bidding process, by an agency or company interested in procurement of a commodity, service, or valuable asset, to potential suppliers to submit business proposals. It is submitted early in the procurement cycle, either at the preliminary study, or procurement stage.
A RFP is used where the request requires technical expertise, specialized capability, or where the product or service being requested does not yet exist, and the proposal may require research and development to create whatever is being requested.
The RFP presents preliminary requirements for the commodity or service, and may dictate to varying degrees the exact structure and format of the supplier's response. Effective RFP's typically reflect the strategy and short/long-term business objectives, providing detailed insight upon which suppliers will be able to offer a matching perspective.
An invitation to tender (ITT), otherwise known as a call for bids or a request for tenders is a formal, structured procedure for generating competing offers from different potential suppliers or contractors looking to obtain an award of business activity in works, supply, or service contracts, often from companies who have been previously assessed for suitability by means of a supplier questionnaire (SQ) or pre-qualification questionnaire (PQQ). You can find, and engage with potential Vendors through your social network preselect them and invite to join your Vendor Network through the Vendor Portal.
Call of products or services directly from a catalog scheduling agreement. Simplify and speed up the purchasing process for your business stakeholders.