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eProcurement Portal Basics: Request For Quotations (RFQs)

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Request for Quotations

RFQs (also called Bid Requests or Tenders) is the heart of the procurement process. This is where maximum human errors and potential leakage occurs for most organizations.

Buyers can view & search through RFQs raised in the system from this screen. Buyers can also create new RFQs from this screen.

RFQ approvals for draft RFQs are also available using this screen.

RFQ Screen

RFQ List Screen

User will be able to see the list of RFQ’s raised. Clicking on the RFQ id opens up the RFQ’s Profile in a new tab.

List Options

-> User can filter RFQ based on date range,creation range,status,item group and buyers.

Help: Step by step guide to options available on RFQ screen.

Search and Export CSV: Users can search through RFQ with RFQ id, RFQ, Created by and Item Group. Users can also export CSV of all the PR by clicking on the Export CSV button.

RFQ Profile Screen

The RFQ Profile screen contains all the information pertaining to the purchase of this set of items in one place.

1. RFQ Details – User will be able to see details of RFQ.

2. Item List – List of items associated with the RFQ.

3. Compare Vendor – Vendor comparison is mentioned here in order of lowest to highest bidder from left to right. User will be able to Compare, Resubmit request to the specific vendor as well as export the comparison chart in PDF or excel format.

4. Comments – User can mention a comment which will be visible to all the vendors while they are submitting request.

5. FAQ – User can add FAQ along with answers which will be visible to the vendors. 

6. Buyer Document – User can add buyer document.

7. Document & Notes – User can view documents uploaded by vendor as well as add notes. Notes are for Internal use.

Create RFQ

Buyers can create RFQs using this option.

1. General RFQ Information – User will need to enter RFQ title, ending time of the RFQ and a description(optional).

General RFQ Information

2. Purchase Requisition – User can select and associate any/all PR by selecting the group and all PR associated in that group will be displayed along with materials. User will need to select the material for which the RFQ needs to be created.

Purchase requisition

3. Attach Documents – User can attach any document that is relevant to the RFQ and it will be displayed to the vendors selected.

Attach Documents

4. Add questionnaire – User can add multiple questions and the same will be displayed on vendor end. Vendor can fill the details while filling details in RFQ and the same will be shown in vendor profile of that particular RFQ. User can add multiple questions here and the same will be shown to the vendors.

Add questionnaire

5. Basic details – User can select the currency in which the RFQ needs to be raised along with budget. This will be shown to the vendor while the vendor is filling the RFQ.

Basic Details

6. Add participants – User can select the vendor who are mapped with the group. Also user can add AdHoc vendor if the vendor is not available in the list.

Add Participants

7. Save/Cancel/Draft –  User can either save or cancel the created RFQ. Also can save it in a draft for future use too.

Save/Cancel/Draft

RFQ Workflow

  • Once the RFQ is created and sent to the vendors who have been selected, it will be in the “Live” status.
  • The vendors will receive the items, fill their quotation and send it back, now it will be in “Received” status and there will be a small green dot next to vendors name which indicates that the vendor has filled the RFQ. All the vendors will have to fill the quotes for it to change to received status.
  • The buyer will now have to lock the RFQ in order to select a vendor. Now the RFQ will be in the “Locked” state.
  • After the buyer selects the quote and submits it, the RFQ status will change to “Approval” status. It now follows the approval workflow which has been defined at the buyer group level.
    • If no workflow is defined at the buyer group level, then it follows the workflow selected at the group level.
    • If no workflow is selected at group level also, then no workflow will be followed, and the quote is automatically accepted.
  • Once the approval workflow is completed, the RFQ status will be changed to “Completed”.   

Inactive, Offline, New Version RFQ and Resubmit 

Inactive RFQs

  • Buyer has an option to inactivate an RFQ which has been wrongly created or for some reason he wants to cancel the RFQ, he can do it from here. 
  • Ones he clicks on Inactivate then the workflow will be generated, and after managers approval, it will be inactivated.
  • The RFQ will become inactive and no other work can be done in this RFQ. The status will be “Inactive”. The only alternative option is to create a new RFQ.
  • The PR quantity will be realised when he inactivates the RFQ.
Inactivate RFQ

Offline RFQs

  • When any of the PR’s are completed offline or the items for any reason are not required, then the buyer can click on the Offline button in the RFQ which will change the status of the RFQ to “Closed and Completed Offline”.
  • The PR quantity will be consumed in this case.
  • This feature should be used when the Buyers are expected to do in-person & offline negotiations. If this is not the rule for your company, the % of offline RFQs should be monitored closely.
Offline RFQ

RFQ Versions

  • If for any reason, the buyer wants to make changes to the RFQ, like adding a new vendor, adding quantities to items etc, he can create a new version of the RFQ by clicking on “New Version” 
  • Once he clicks on this button he will get an option to edit the RFQ. Submitting the new data will trigger a workflow and seeking their manager’s approval. Once approved, the new version of RFQ will be created and sent to the vendor for resubmission.
  • If the manager rejects the new version, then he will have to create a new RFQ
  • A new version of the RFQ will be created and the previous version will become inactive.
  • By clicking on the version number you will be able to view the 1st version of the RFQ.
  • On clicking the RFQ id, it will redirect you to the respective RFQ’s.
Initiating a new version for the RFQ
RFQ version numbers

Resubmit an RFQ

  • If the buyer is not satisfied with the quotes submitted by the vendor, he can request the vendor to resubmit their quotes and specify the reason why the vendor should do so.
  • There are 2 types of resubmissions:
    • Resubmit to all vendors: In this, the request goes to all the vendors requesting them to resubmit their quotes
    • Individual resubmission: By using this option, you can request resubmission of quotes from specific users only. (For AIA client this option is known as Offline negotiation)
  • There is a limited amount of time when a resubmission request can be made. This count is set from the backend for each site.
  • The default value for this is 15, though this can be changed from settings.
Bid comparison

Important points in RFQ

Regrets in RFQ

When the venor fills in 0 amount for any item in the RFQ, then it will be reflected as Regret in the RFQ. You will not be able to select that item, nor will it be selected while clicking on  “Choose all bids” or “Choose item with best price”.

Regrets in RFQs

Colour coding in RFQ

  1. The small green circle next to vendors name shows the vendor has submitted the bid.
  2. The small black dot next to the green, shows that the vendor has been requested to re-submit their quotation.
  3. The small mail symbol indicates that the timeline can be extended for that vendor.
  4. The prices in the RFQ which are in green represents that it is the lowest price, however when the lowest price is 0, then the 2nd lowest price will be shown in green.
Color coding in RFQs

Item wise comments

When the buyer selects any bid other than the lowest bid and clicks on submit then a comment box will be displayed in which he will have to enter the reason for selecting this quote.

Item wise comments

Versioning in RFQ

Versioning Format:

V1L1/V4

V1- Buyers first  request for quotes from vendor

V2- Buyer requests for resubmission of quotes from vendor

V3 – Buyer requests for Offline resubmission of quotes for vendor

L1 – Vendor first quote for a particular request

L2 –  Vendors second quote for a particular request

V4 – Total number of quotes submitted by the vendor for an RFQ, including all buyer versions

The possible versions are:

V1L1 1st request for quotes sent by buyer and vendor submits their quote for the 1st time

V1L2 1st request for quotes sent by buyer and vendor submits their quote for the 2nd time

V1L3  1st request for quotes sent by buyer and vendor submits their quote for the 3rd time

V1L4  ,  V1L5 and so on

V2L1 Buyer requests for resubmission and the vendor submits their quote for it.

V3L1 Buyer requests for Offline negotiation and the vendor submits their quote for it.

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