RFQ: pros & cons , use
An RFQ is not publicly broadcast, it is circulated among only
a few selected vendors capable of delivering the product the issuing company
desires. Thus, using an RFQ reduces procurement processing time because there
is no need to prepare procurement solicitation documents. As the number of
bidders' quotes requested limits the amount of RFQs received, it can have a
direct impact on reducing the selection process time. Also, as an RFQ goes to a
limited number of pre-qualified vendor, the quality of the final product can
also be kept in check.
Although,
the RFQ may result in deviations from the normal process because the soliciting
company determines which vendors to send RFQs to, in effect limiting the
competition. Vendors that favorably respond to the RFQ and meet the minimum
criteria are included in the RFP solicitation process.
When to Use an RFQ
Using an RFQ makes the solicitation process more efficient
because the document is circulated only to a select few. With even fewer qualified
responses being provided. This reduces the time and effort required to evaluate
proposals from qualified bidders. This can be modified to the particular terms
and conditions. The contract is awarded when a vendor accepts the offer.
After reading this if you require an RFQ software for your
firm, connect with us now
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