Request For Quotation

The Request For Quotation (RFQ) functionality allows you to manage the complete RFQ process. An RFQ comprises of the detailed specifications of the requirements, for which the bids are invited from the suppliers.

RFQ master data

The master data used for the RFQ process is set when the application is synchronized with an ERP application. This information is received from the ERP:

  • Part
  • Part Group
  • Unit of Measure
  • Unit of Measure Group
  • Landed cost
  • Currency codes (pre-populated)
  • Currency Exchange Rate
  • Payment term
  • Payment Method
  • Ship /Delivery terms (Incoterms pre-populated)
  • Carrier (SCAC codes pre-populated)

Auction Types

The application processes the bids received based on the auction type selected for the RFQ. The auction types include:

  • Traditional: The application does not indicate the lowest bid for the RFQ line. The bids received are updated in the integrated ERP application simultaneously.
  • Reverse: The application indicates the lowest bid of all the bids received for the RFQ line. The bids received are updated in the integrated ERP application simultaneously.
  • Sealed: The negotiation with the supplier is not possible as the bids submitted by the suppliers are updated in the ERP and evaluated only after the expiry date specified for the RFQ.

RFQ process

The RFQ, published from the ERP, is sent to the selected suppliers. An RFQ includes the line item details the required quantity, date and optionally with target price and the Manufacturing Part Number (MPN).

  1. After an RFQ is published in ERP, you can:
    • Modify the expiry date and add attachments to the RFQ line.
    • Terminate the auction prior to the expiry date or prior to the award of a contract to the supplier.
    • Cancel/reject a supplier from the auction.
  2. After the response is received for the RFQ line in Supplier Exchange, you can:
    • Negotiate the RFQ response received from the supplier, based on the auction type selected for the bidding process.
      Note: 
      • You can initiate negotiation with the supplier only if the auction type for the RFQ is Traditional or Reverse.
      • You can negotiate the quantity, pricing, delivery date, price book, delivery schedule, payment term, delivery terms, and the landed costs associated with the RFQ line.
    • Approve the received bids or quotes. This information is updated in the integrated ERP application.
      Note:  If the auction type for the RFQ is set to Sealed, the received bid is updated in the ERP only after the specified expiry date for the RFQ.
  3. After the Quote response is received for the RFQ line in ERP, you can:
    • Select the supplier to whom the business or contract must be awarded in the ERP and this information is updated in Supplier Exchange. The application notifies the corresponding supplier to whom the contract is awarded.
    • Convert the response for the RFQ line to a combination of the purchase contract, purchase order and price book.

RFQ events and alerts

You can configure the alerts that must be triggered when an event related to the RFQ process occurs. You can select the RFQ events for which an alert is sent to the email ID specified on the User Profile page.

You can also configure the events that must be displayed on the Event Management Console page using the Event Modules page from the Preferences menu.