Download these 10 Free Business Quotation Templates to help you prepare and print your Business Quotation quickly and effectively.
Business Quotations, also known as RFQ (Request for Quotation), is a request that a company puts out when they hire contractors or manufacturers to perform a job. Further, it is a way of encouraging the contractors to bid against each other. The company that issues RFQ then selects one of the betters to get the job. As a professional, it is your responsibility to issue requests for quotations to suppliers to get bids on parts and services needed for your organization.
The suppliers are invited to submit a detailed bid on a part or service that meets the requirements as laid down in the request for quotation or RFQ. An RFQ can either be written or oral. Although oral is acceptable written is preferred. If an RFQ is written then any special specifications or requirements will be in writing and the chances of the supplier omitting or misinterpreting what is being requested will be smaller or non-existent.
Free Business Quotation Templates:
Components of RFQ:
Some of the key components of RFQ that must be included in an RFQ:
- In the modern world, most of the communication between buyers and suppliers is through electronic media.
- It is good to have a standard format for all RFQs to better management of all information.
- If the supplier is familiar with your format, their chance of missing important information will be reduced.
- It must be simple and technical. However, the language in which it is written must be simple to understand by the supplier.
- Make sure your RFQ is efficient and effective.
Important Information in RFQ:
There is certain information that should be included in standard RFQ to make sure that the details of the request are communicated properly to the supplier:
- Issue date of the requisition.
- The due date of the bid from the supplier. If multiple dates are used, then the shipping schedule must be included. The part being requested.
- Description of the part, drawing number, and revision level.
- Attach a copy of the drawing.
- Description regarding special requirements such as packaging and shipping.
- Any additional information that helps the supplier.
You can easily create a business quotation template with the help of a pre-formatted template. To help you out, we have listed some free and high-quality business quotation templates below. Further, all of these templates are easily editable and customizable for the ease of the users. Anyone can download these templates and use them according to their need. So hurry up..! and download these templates to create your business quotation in a matter of minutes. However, they contain formulas to perform all the calculations automatically.
Suppliers to whom RFQ Is Sent:
After the RFQ is created, the decision is made regarding what supplier the RFQ will be sent to. Further, when making this decision, the professional must consider:
- The goal of the parts is to get them made properly.
- The cost must be included. It will help in eliminating the suppliers who mention the cost higher than the other suppliers.
- Lead Time. There may be some suppliers that, due to the nature of their business, need a long lead time. At a minimum, the purchasing professional tries to get 3 minimum valid days at every RFQ. To do this, at least 5 to 7 suppliers should receive an RFQ for the part or service.
There are always exceptions to this rule. These exceptions must be handled differently. For example, if there are no responses to the RFQs at all, then the purchasing professional must identify why there is no response. Maybe the part is not in their scope of supply. Further, there are also occasions when the supplier company feels that they cannot take the orders. Meanwhile, if any of these situations happen, the purchasing professional must reach out to the supplier and try to work out the issues if possible, and then convince the supplier to bid.
In some industries, the RFQ is very complicated. It is in the form of a document with many attachments. Government purchases, for example, have a very long RFQ. This is necessary because of the laws and rules involved in doing business by the government.
Review the Bids:
Once all the bids are returned from the supplier. Review each RFQ and understand what the suppliers have submitted.
- Make sure the bids are correct.
- Pricing is competitive.
- Specifications are met.
- If the supplier bid is not competitive, extremely low, or extremely high, it is a good idea to discuss the bid with the supplier. Maybe they have made a mistake in typing the bid. Maybe they did not understand what you have requested.
- Bid deadlines can be extended if necessary.
An RFQ is a tool to communicate with the supplier the organization is interested in doing business with. The supplier must submit a competitive bid to the specifications requested by the buying organization. An RFQ helps to communicate exactly what the organization requires to give the supplier all the information needed to submit a competitive bid to the buyer. Further, the buyer should examine closely to whom the RFQ will be sent. An RFQ should be made in a manner that ensures that competitive bids will be submitted from potential suppliers. An accurate RFQ is essential to get the correct price for the correct specification from the suppliers.
Kamran Khan is a seasoned blogger with a deep-seated passion for office document processes and the art of productivity. With a wealth of experience spanning over a decade, Kamran has become a trusted name in the blogging community, known for his insightful articles and practical solutions that help individuals and businesses streamline their daily operations.
