With a RFQ, preparation is key

Planning

Planning

RFQs (requests for quotation) can make the difference between getting a good deal and a great deal for goods and services. Through a RFQ a firm is communicating what they need from the marketplace: what they get back in terms of price, quality and functionality is determined in no small part by the clarity and quality of their request.

Our latest blog series investigates the three fundamental steps in the construction of a best-practice RFQ.

1. Preparing with research

As with most things in life, preparation is crucial to the success of a RFQ. To avoid the common pitfalls of sourcing, dedicate time and effort right from these preparatory stages.

Laying the groundwork should include building knowledge of what the market offers, developing an idea of what the winning bid will look like and who you expect to bid, as well as keeping abreast of technological trends and marketplace innovations.

In preparing your RFQ, you might find it useful to first publish a RFI (request for information). Find out more about the purpose and common use of a RFI here.

The amount of time and resources dedicated to researching the market should be proportionate to the financial value and strategic importance of the product or service required.

The key points in laying the groundwork for a RFQ include:

– Analysis of previous purchasing activity concerning the product or service
– Awareness of pricing levels and the cost/benefits of switching supplier
– Familiarity with main suppliers likely to bid
– Knowledge of technological developments in the marketplace

Concerned that this all sounds very time-consuming? The man-hours involved in producing an effective RFQ are cut drastically when you move from paper-based sourcing to e-sourcing. Discover how you can source easily and efficiently online, getting the best value from suppliers in just a few clicks with SourceDogg’s simple-to-use, affordable e-sourcing platform.

Up next in this three-part blog series… compiling the RFQ.

The three steps to an effective RFQ are explored in full and available free of charge in the latest SourceDogg whitepaper, Prepare, Create & Go: 3 Steps to an Effective RFQ – Request for Quotation.

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