In the modern, fast-moving, and highly competitive business environment, any enterprise should be ultra-agile and remarkably efficient in procurement processes. One of the most critical tools in managing and running these processes would be RFQ software. RFQ software, or Request For Quote software, is a digital solution that can facilitate, streamline, and optimally manage ways to get quotes from suppliers.
What is RFQ software?
In simple terms, RFQ software is a place where procurement teams can create, and send out RFQs to chosen suppliers, obtain quotations, and compare prices or any other parameters provided by various vendors. These RFQs spell out the products or services required, together with specifications, quantities, delivery timelines, and other details as may be necessary. Thereafter, suppliers return their quotes for further return to be gathered and sorted within the software. Thereafter, the procurement team could go through these quotes, compare them side by side, and come out with informed decisions on price, delivery conditions, and other factors such as the reliability of the supplier.
See also: The Impact of Cloud-Based Quality Management Software on Global Collaboration and Remote Auditing
Why is RFQ software needed?
RFQ software can solve most of the lists of critical challenges that most businesses face in their procurement processes. This includes the complexity of the relationship between the business and the supplier, the transparency and perceived fairness during the procuring process, and the least time and effort spent in getting competitive quotes.
Simplifying procurement processes
First and foremost, RFQ software is required for the automation of some procurement processes. The traditional methods require so much manual work in preparing RFQs, managing the various responses, and finally, comparing quotes.
Most of these processes are automated with RFQ software; in effect, this makes the RFQ process less labor-intensive. For instance, instead of sending the RFQs out one by one to all the suppliers, procurement teams now could send out RFQs through the software, with just a few clicks, to multiple of them at once. Following this, the ‘responses’ will then be collated, organized, and compared for quote evaluation and decision-making.
Better management of supplier relationships
One more area in which RFQ software adds enormous value is in the realm of supplier relationship management. Global supply chains of today mean that businesses often deal with thousands of different suppliers, many of
