An RFQ (Request for Quote) is part of the process for choosing a vendor and price. This allows a company to select a vendor when they bid on the RFQ. It helps companies select a constant vendor for a consistent supply of materials and standard products. RFQs are usually designed for products that are generic in nature. Hence, these can be ordered in bulk every time with an extensive discount.

The Importance of RFQ

Using an RFQ is extremely helpful to a company since it reduces the time it takes to procure the needed materials. This offers a lot of security to a company, which can then count on vendors to receive fair bids. However, RFQs also reduce competition, hence, companies may miss out on the lowest prices.
This is where Alpide ERP Business Notes shines as they can deliver multiple POs from the same RFQ. This generates competition between different vendors. For each order, a company may select the best bid.

Alpide ERP RFQ Process

The process of creating an RFQ is quite simple. The first step is to create a requisition. This would involve all the materials, products, or services that need to be ordered. The requisition would include the quantity for each item. The order would also include all requirements for the items needed, including the delivery time.
Next, the RFQ is created. After that the purchase orders can be created with respect to the different vendors available. The process is seamless and very quick.

Creation of Multiple Purchase Orders from RFQs

Thanks to the options given by Alpide ERP, RFQs can be converted into multiple POs. These purchase orders can go out to multiple suppliers who can then provide their quotes. This process allows a company to select the most financially viable option. This process has the ability to provide the company with the best value for money option out of the crop.
This option of converting RFQs into POs comes in handy whenever there are multiple vendors vying for the same contract. However, in order to ensure that the company doesn’t overspend, multiple purchase orders are created. This way, not only can determine the best quote, but also, any vendors which consistently overcharge can be eliminated.
Moreover, multiple purchase orders also allow companies to determine which vendors are more efficient and more productive. Some vendors aren’t large enough or efficient enough to deliver on the order in the first place. This process eliminates them as well.
Also, some projects may require multiple vendors to work together. Hence, the purchase orders can be split between them. That way, a company can assemble their inventory from multiple sources without sacrificing productivity. With the Alpide ERP tracking the deliveries and communications from each vendor, the process is seamless.