In this article, we will explain what a Request For Quest (RFQ) is and how this module can be leveraged to benefit your purchasing operations.
A Request For Quote (RFQ) is a purchasing process whereby details and specifications on a purchase request are sent to suppliers in order to receive purchasing information such as pricing, payment terms, estimated delivery dates and any other pertinent information regarding the materials.
The RFQ process is typically run in order to create a competitive market for the material you are looking to purchase and help drive cost down. The MainStem platform allows you to bring efficiencies into the process by giving a central repository to manage, execute and transmit the RFQs electronically to your suppliers. Additionally, suppliers can submit correspondence and their bids through the MainStem platform to allow your procurement teams to centralize RFQ responses and information to remove reliance on email communications and comparison spreadsheets. Once the information has been received, your purchasing team can compare bids to make an informed decision on material source based on each suppliers price, quality & delivery times.
Purchase Orders can be automatically created and transmitted to the selected suppliers based on your award decisions and resulting cost savings of competitively bidding every RFQ will be automatically measured and presented in your RFQ dashboard.