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Send your purchasing inquiry via mail, receive quotations, negotiate pricing and terms, analyze offers, select the best vendor, initiate the approval workflow, and generate Purchase Orders automatically—all within one platform. Simplify your procurement process with complete visibility and automation. #ProcurementAutomation #VendorManagement #DigitalProcurement #SupplyChain #Efficiency #BIDz.ai #procurement #procurementleaders

The Request for Quotation (RFQ) process in procurement is a common method for gathering pricing information and selecting suppliers for specific goods or services. It’s typically used when the requirements are clear, and the primary consideration is price, though other factors like delivery, quality, and vendor reliability may also be assessed. Here’s an overview of the RFQ process in procurement: 1. Define Requirements • The purchasing team or department clearly outlines the specifications, quantity, quality standards, delivery timelines, and any other essential requirements for the product or service. • This can include technical specifications, compliance standards, and any special handling or warranty needs. 2. Prepare the RFQ Document • An RFQ document is prepared, including all relevant details that the suppliers need to provide accurate quotes. • It typically includes: • Detailed item descriptions and specifications • Quantity required • Delivery timelines • Terms and conditions (payment terms, shipping terms, etc.) • Evaluation criteria, if applicable • Deadline for submission of quotes 3. Identify and Invite Suppliers • Based on vendor lists, supplier directories, or through market research, the procurement team identifies potential suppliers. • RFQs are then sent to these suppliers, either directly or through a bidding platform. 4. Receive and Evaluate Quotes • Suppliers submit their quotes, which include pricing and other relevant details. • The procurement team reviews each submission to ensure they meet the technical, quality, and delivery specifications. 5. Compare and Negotiate (if needed) • Quotes are compared based on price, compliance with specifications, delivery schedules, and additional terms. • If necessary, the procurement team may negotiate with suppliers to optimize pricing, improve terms, or adjust delivery schedules. 6. Select Supplier • Based on the evaluation, the best supplier(s) are selected. This may be the lowest-cost supplier or the supplier offering the best value considering quality and delivery time. • The team may issue a Purchase Order (PO) or establish a formal contract to secure the order. 7. Award the Contract and Communicate • The selected supplier(s) are notified, and contracts or purchase orders are issued. • Unsuccessful suppliers are also informed to close the process formally. 8. Follow-Up and Manage Delivery • The procurement team monitors the supplier’s performance to ensure the agreed-upon quality, timeline, and delivery conditions are met. • Any discrepancies or delays are managed through communication and corrective actions as needed. Benefits of the RFQ Process • Ensures cost efficiency by leveraging competitive bids. • Provides transparency in vendor selection. • Streamlines purchasing for straightforward needs with clear requirements. The RFQ process is effective when specifications are clear. #procurement #RFQ #supplychain

Simplify Your Procurement Workflow in 10 Easy Steps! Make your procurement process smooth and hassle-free. Follow these steps to streamline your workflow and ensure successful transactions every time. 📄 Create Purchase Requisition (PR): A department initiates the process by creating a PR specifying the required items, quantities, and budget. ✅ PR Approval: The PR goes through a designated approval workflow, ensuring adherence to spending limits and internal controls. 🔍 Soliciting Quotes (Optional): Depending on the purchase value or complexity, Requests for Quotation (RFQs) may be sent to obtain bids from multiple vendors. 🛠 Vendor Selection: Offers are evaluated based on factors like price, quality, delivery terms, and vendor reputation. The most suitable vendor is chosen. 🤝 Negotiation and PO Creation: Contract terms like pricing, delivery schedule, and payment methods are negotiated with the chosen vendor. Once agreed upon, a formal PO is generated. ✔️ PO Issuance and Approval: The PO is sent to the supplier for confirmation and may require internal approvals within the company before finalization. 📦 Goods/Services Received: The supplier delivers the goods or completes the services as per the PO agreement. 🔎 Three-way Matching: Upon receiving the supplier's invoice, a three-way matching process verifies it against the PO and receiving report for accuracy. 💸 Invoice Approval and Payment: After successful matching, the invoice is authorized for payment according to the agreed-upon terms. 📚 Record Keeping and Closure: The PO is marked as complete, and all related documents are archived for future reference. Cimmra.com #Cimmra #Procurement #SupplyChain #ProcurementProcess #SupplyChainManagement #PurchaseRequisition #ThreewayMatching #VendorSelection #Invoice #PurchaseOrder #Negotiation

Request for Quotation Process ----------------------------------------- Request for Quotation (RFQ) process typically involves several steps: Identifying Needs: The first step is to clearly define what goods or services you require. This includes specifying quantities, quality standards, delivery timelines, and any other relevant details. Supplier Selection: Identify potential suppliers who can fulfill your requirements. This might involve researching suppliers online, getting recommendations, or using a pre-approved vendor list. RFQ Preparation: Prepare the RFQ document, which outlines your requirements in detail. This document should include information such as specifications, delivery terms, payment terms, and any other important details. Sending RFQ: Distribute the RFQ to selected suppliers. This can be done through email, online platforms, or procurement portals. Supplier Response: Suppliers review the RFQ and submit their quotations within the specified deadline. They may seek clarification on certain points before providing their quotes. Evaluation: Evaluate the received quotations based on various criteria such as price, quality, reputation, delivery time, and compliance with requirements. Negotiation: Depending on the complexity of the RFQ and the responses received, you may enter into negotiations with one or more suppliers to finalize the terms and conditions. Selection: Once negotiations are complete, select the supplier(s) that best meet your requirements and offer the most favorable terms. Contracting: Formalize the agreement with the selected supplier(s) through a contract or purchase order. Ensure all terms and conditions are clearly defined to avoid misunderstandings later on. Follow-Up: Keep track of the progress of the order and maintain communication with the supplier to ensure timely delivery and resolve any issues that may arise. Each organization may tailor these steps to suit its specific requirements and procurement policies, but these are the general stages involved in the RFQ process. #procurement #rfqprocess #Auction #Bidding #RFQ #rfp #RFI

💡Request for Information (RFI): Purpose: An RFI is the first step in the procurement process. It's a way for businesses to gather general information about products, services to help in decision making. Example : If a company starting his online payment methods but isn’t sure what are best available options in the market , they might issue an RFI to gather information to all available vendors in the market. 🤝Request for Proposal (RFP): Purpose: To solicit detailed proposals for a project or service, when a buyer has a specific project or problem. The company asking vendors to propose solutions. The RFP will include detailed information about the project, what services the company is looking for, and evaluation criteria for assessing proposals. Vendors respond with detailed proposals, explaining how they can meet the requirements, the timeline for delivery, and the cost. 💰 Request for Quotation (RFQ): Purpose: To obtain price quotes for specific goods or services. A buyer sends out an RFQ to potential suppliers asking for their pricing for a set of defined products or services The RFQ will typically include a detailed description of what is quantity required, specifications, and delivery schedule. Vendors respond with a quote for the project, detailing the total cost of providing the product. Then buyers will compares these quotes and chooses the best one based on price and the vendor's ability to deliver Summary : While RFIs, RFPs, and RFQs are all tools used in the procurement process, they serve different purposes: ☀RFIs for preliminary information gathering. ☀RFPs for detailed proposals to solve complex needs. ☀RFQs are used for straightforward price comparisons. Understanding these differences can help businesses choose the right tool for their procurement needs and help vendors respond appropriately and maintain successful business relationship. #Supplychain #procurement #purchasing #proposal #information #quotation #RightsinProcurement

A manual #procurement process involving #supplier information can be a tiresome task. The end-to-end #tendering and #contracting process require structure and an approval hierarchy. Hence, companies need to automate their procurement process to reduce errors and ensure a streamlined approach. Novigo Solutions’ e-Tendering application enables a smooth transition from requisition to payment. This application is a great fit for the supply chain process as it gives users important details related to suppliers, delivery times, quality, and payment options. The procure-to-pay cycle includes the following: 🔸 Requisition and Approval Purchase requests are raised and routed through the designated hierarchy for approval. 🔸 RFQ/RFP Creation Once the purchase request is approved, suppliers bid for the necessary goods and services through system-generated RFQs/RFPs. 🔸 Proposal Evaluation The submitted proposals are evaluated by the Procurement department automatically based on the technical and commercial aspects. 🔸 Contract Creation Using the application, the Contract department creates contracts and purchase orders post supplier selection. 🔸 Invoicing and Payment The e-Tendering application handles the complete invoice and payment process from submission to timely payments. 🔸 Supplier Performance Tracking By monitoring and assessing supplier information, companies can track the supplier performance necessary for informed decision-making. 🔸 Contract Closure Post the entire procurement cycle, the application marks the contract closed after catering to all aspects of the proposal. Learn more about the e-Tendering application here: https://lnkd.in/dQrWD4Ak Contact us at Novigo Solutions to get a streamlined, automated procurement process. Mohammed Jarood Ajay Francis V Varun Nagarajan Mohammed Abulhaija Jignesh Karnik #etenderingapplication #lowcode #supplier #procurement #supplychainmanagement #novigosolutions

Is your RFQ process as efficient as it could be? 🤔 In today’s fast-paced market, having a proper Request for Quotation process makes a huge difference for effective sourcing. Whether you’re looking to refine your current process or starting from scratch, we have an easy-to-follow guide for you. Check it out and take your sourcing to the next level! 🔗 Read the full article here: https://lnkd.in/dzg9QrW2 #procurement #rfq #strategicsourcing

Have you ever asked yourself what the document cycle is in procurement? The journey from selecting a supplier to receiving the goods involves several important steps: 1️⃣ Request for Information (RFI): - Purpose: Gather detailed information about potential suppliers, their capabilities, and offerings. - Action: Procurement team sends RFI to suppliers, asking for details about products, services, and business capabilities. - Outcome: Supplier responses are reviewed to assess who fits the company's needs. 2️⃣ Request for Quotation (RFQ): - Purpose: Request price quotes and specific terms for needed goods or services. - Action: Procurement sends RFQ to shortlisted suppliers asking for cost breakdown, lead times, and payment terms. - Outcome: Supplier submits price quotations, terms, and availability. Procurement compares and evaluates the quotes. 3️⃣ Supplier Evaluation & Selection: - Purpose: Review and select the most suitable supplier based on RFI, RFQ, and/or RFP responses. - Action: The procurement team evaluates suppliers based on criteria such as price, quality, delivery time, and service. - Outcome: The supplier is chosen and approved for the procurement of goods or services. 4️⃣ Purchase Requisition: - Purpose: Internal document used to request the procurement of goods or services. - Action: The department in need raises a purchase requisition, detailing product - specifications, quantities, and budget allocation. Outcome: The procurement team reviews and approves the requisition. 5️⃣ Purchase Order (PO): - Purpose: A formal document sent to the supplier confirming the order details, including quantities, prices, and terms. - Action: The procurement team generates a PO and sends it to the selected supplier. - Outcome: The supplier accepts the PO and begins the process of fulfilling the order 6️⃣ Shipping Documentation: - Purpose: The supplier ships the goods and provides necessary shipping documents (e.g., Bill of Lading, Packing List, Commercial Invoice). - Action: Supplier uploads all shipping documents to the designated platform (e.g:- ASN Advance shipping note) and informs the buyer. - Outcome: Buyer verifies the shipping documents to ensure accuracy and prepares for customs clearance and receipt of goods. 7️⃣ Goods Receipt: - Purpose: Acknowledge receipt of the goods and verify they meet order specifications. - Action: Upon arrival, the goods are inspected for quality and quantity, and a Goods Receipt Note (GRN) is issued in the system. - Outcome: Goods receipt is recorded, and payment can proceed according to the agreed payment terms (e.g., cash against documents). 8️⃣ Invoice & Payment: - Purpose: Finalize payment based on the agreed terms. - Action: Supplier sends an invoice, and the buyer processes payment. - according to the agreed payment terms. -Outcome: Payment is made, and the procurement cycle is completed. #procurement #supplychain#buyersupplychain

In this article, we’ll share valuable tips on how to craft a comprehensive Request for Quotation (RFQ) to ensure clarity, accuracy, and effective communication with suppliers. https://lnkd.in/dUaGujy7 #rfq #procurement #supplychain #read #article #goodread

e-tendering is transforming #procurement, but are you leveraging it effectively? In our latest blog, we delve into the most common mistakes procurement teams make during e-tendering and how these can derail efficiency, compliance, and cost-effectiveness. 📖 Read the full blog here: https://lnkd.in/g5r9SCqi 🔗 Let’s connect if you’d like to explore how C1 India Pvt Ltd can help optimize your procurement processes! #etenderingsolution #eauction #procurementsolution #c1indiapvtltd #procuretopay #procurementautomation #purchaserequisition #indentmanagement #contractmanagement #suppliermanagement #vendor #warehousemanagement