A Request for Quotation or RFQ is essentially what you send a supplier or a vendor to request a price quote from them. An RFQ is considered to be a very important document in procurement. It helps businesses to compare prices of products from various suppliers to find the lowest prices possible and go ahead with the most suitable vendor. Not just this, an RFQ can also help you to make a decision based on weighing up a better option in an organized and logical way. All this can be done more efficiently with the help of software. An RFQ software is an online web-based solution which is capable of managing these RFQs seamlessly. How? Well, the answer is simple, isn’t it? Automation. An RFQ software is a great way to help you save money and can help you digitize the entire RFQ process involved in procurement. What is an RFQ? A Request for Quote (RFQ) is a document which requests a price quote from suppliers. RFQs are essentially requests for information and not requests for proposals (RFPs). They do not ask the supplier to submit bids on a specific project. In simple terms, RFQ is a process in which a business requests a set of suppliers or service providers to submit their price quotations. These suppliers or service providers stand a chance to supply or provide goods or services to the business. On receiving these price quotations, the business chooses the vendor that best matches its criteria for the goods or services. RFQs are needed by businesses which require a consistent supply of products with set specifications and standards every time. Because of such conditions, suppliers which are highly organized usually stand a better chance at creating a streamlined RFQ that offers the best and matches the requirements exactly as needed by an enterprise, every time. What is an RFQ Software? Generally, an online RFQ software is a web-based solution. Such software enables organizations to manage RFQs more efficiently. When everything is digitalized, an RFQ management software helps companies to stay organized and keep track of requests which then eventually helps to automate the process. The best thing about having an RFQ software is that you can easily create requests for quotations directly from your browser or smartphone. This single-handedly eliminates the need for complex spreadsheets as all information contained in an RFQ is saved centrally in the software. This information can be easily accessed by relevant parties involved in the RFQ. What’s great about a digital tool like this is that – users can access the request for quote software whenever they want, wherever they want and with much greater flexibility over their time spent on tasks related to RFQs. When to use RFQ Software? Usually, RFQs come in handy when you need to get a price quote quickly. Since they are just requests for information, they can be used when there is not adequate time to prepare RFPs i.e. requests for proposals. RFPs require the vendor to give detailed bids on the given projects or tasks which can be time consuming. Sometimes a request for quotation might not be the right fit for every scenario in a procurement process, but it can be very beneficial. Since the main consideration in an RFQ is price, it is most often used for indirect purchases i.e. purchases like hardware or office supplies. RFQs can be a great way of evaluating suppliers by providing a consistent way to compare their responses and quotes. Buyers can consider using an RFQ in the following cases: When buyers have an existing list of prequalified suppliers or vendors who are able to supply a specific set of products or services to them. If price is the driving factor of the product or service. If the buyer knows exact specifications of what they need and the quantity. Why your business needs an RFQ software? Let’s have a look at the importance of RFQ software in your business. Ease of selecting suppliers Since suppliers have a better understanding of what is being requested from them, this makes the selection process simpler for businesses. This essentially means that less time is wasted behind looking for the right supplier as the requests will be shorter and more specific. Buyers can easily find the best vendor for their needs and requirements more quickly as an RFQ makes it easier to differentiate between suppliers. Ability to compare prices and quotes from multiple suppliers One of the major benefits of an RFQ is that you can compare prices and quotes from multiple suppliers. This helps businesses find the best deals. When buyers compare quotes from multiple suppliers, they save money and get the best value for their money. This in turn, helps them to avoid making unwise choices as the buyers have made an informed decision based on the RFQs uploaded on the RFQ software. Buying process is streamlined Automating the RFQ creating process by using an RFQ software streamlines the buying process by ensuring that all requests are standardized and documented. This way, everyone involved in the purchasing process can see what is being purchased and what is the process by which it is being purchased. Streamlining the buying process using the RFQ software will help buyers save time and make better use of their resources. This proves to be an important factor to the business. Improved supplier communication RFQs essentially contain instructions and requests that are much clearer than requests for proposals (RFPs). This clarity makes the suppliers or vendors easily understand what is being requested from them. The clarity of instructions and requests is what makes the communication between the buyer and the supplier much simpler and stronger. Better relations with suppliers Implementing an RFQ software also helps businesses establish strong and long-term relationships with their suppliers. The way this is done is because RFQs are made in a more professional manner and this allows the supplier to understand exactly what the buyers requirements are and why they need it. This understanding paves the way for a better understanding between the buyer and the supplier and improves relationships. Saves time on requests An RFQ software is a time saver and for good reason. Since an RFQ mentions everything in detail about what is being requested from the suppliers, it eliminates the time-consuming task of going back and forth for clarifications on every last detail. This also means that potential vendors will only have to submit proposals which are relevant to the requests and not waste time on submitting irrelevant proposals. Better pricing An RFQ essentially has suppliers competing for the business with suppliers submitting their best prices and quotes. A RFQ software allows the suppliers to compete for the business as the requests are more specific and business can get better prices because of this. More clarity for suppliers It is no surprise that suppliers have a clear understanding of what is being requested from them because of an RFQ. This makes the entire procurement process involving an RFQ software much less confusing for suppliers, giving them more clarity. Bellwether Request for Quotation (RFQ) Module Bellwether Purchasing Software is a robust and full-featured software with modules that fit the needs of many small to medium sized business. Request for Quotation is one of our most popular modules with the ability to be used as a stand-alone unit or used in conjunction with other Bellwether Purchasing Software modules for a fully integrated procurement system. This request for quotation software, also called sourcing software, will help your business in the procurement process of finding the best pricing for all items requested. This web-based software works to help you manage your vendors and files for material management in an easy-to-use manner. Benefits of Bellwether Purchasing Software Request for quotation There are two basic methods of entry to get the process started: one is to generate the Request for Quotation, or RFQ, from an existing requisition; the other is enter the items you’d like to receive bids on and select the vendors you you want to invite into the bidding process. From here the software takes over by submitting the RFQ to the designated vendors by fax or email. You can also opt to print the RFQ and submit manually. At any point during the process you can modify your RFQ and resubmit the changes to all the vendors. As quotes are received you enter them back into the software for comparison and analysis of all costs, discounts, shipping charges, and length of time until the order can be filled. View the analysis online or print to help you make a more informed decision with all the information outlined for you. Bellwether Purchasing Software eprocurement software RFQ status inquiry gives you up-to-the-second tracking of bids, including: Vendor’s bid informationThe successful vendor receiving the bid and the final purchase order.Detailed status report information on all RFQs entered into the system and the Purchase Order to which they were converted.Data on open or closed RFQs organized by RFQ, vendor, item, commodity, buyer and date require The Bellwether Purchasing Software software will take the information from the RFQ and the successful vendor’s bid and automatically convert it into a Purchase Order pending approval of the designated management. The rules and processes are adjustable to your specifications. Request a demo now to watch it action!