Purchasing and Supplier Management

Purchasing and Supplier Management
Assignment #1: Request for Quote
-Danita Samuel
1. What will you request from Dwaine prior to starting the Request for Quote process?
What document(s) will you need from Dwaine? How can you as the buyer help Dwaine
with the document(s)?
As a purchasing buyer, it is necessary to obtain all information regarding quote process
on concerning industry like name, address, contact details from Dwaine. Documents
needed from Dwaine includes any licenses issued by government bodies, contract form,
maintenance form if required. To help Dwaine with documents, the purchasing buyer
can provide him with the last contract to make him familiar with them.
2. Explain the types of information you will need to complete the Request for Quote
Document. Choose 3 areas of a Request for Quote document and explain why these
details are important to the process
The typed of information needed to complete the RFQ document is product definition
with detailed specifications, delivery requirements, quality and quantity amount,
payment terms, method of evaluation, timeline and review process, terms and
condition of the contract and submission requirements.
Three areas that are important to complete the RFQ are general terms and conditions,
pricing template and awarding selection criteria

General terms and conditions: Bidders will have a framework to follow when they
consider placing a bid if the GTC or contract template is attached. Indicate which terms
are renegotiable and which aren't. When it comes time to close the RFQ, clarity here
will save time in negotiations.
Pricing template: Trying to compare quotes submitted in multiple formats and
structures is really aggravating. By creating a pricing template, you may give
participants instructions on how to submit a bid. Having everyone use the same format
will make it easier to compare offers and choose the best one. You can even ask
suppliers to break pricing into cost elements if necessary. In the pricing template,
define the price breakdown cost elements. Cost factors may differ by category, and
cost drivers for different commodities and services are distinct.
Awarding selection criteria: You will need to define the awarding criteria and weights
you want to apply when selecting an RFQ winner in order to keep the RFQ process
transparent and easy to understand for participants. To avoid disagreements, you
should distribute these to the participants.
3. What is the minimum number of suppliers you would invite for the Request for Quote?
Why?
The minimum number of suppliers that should be invited are 5 – 8. This is to provide a
better understanding of all the benefits they might bring in, for example their
competitive prices, expertise, experience, etc., by this way, we will be able to have a
wide range of options to choose and compare from.
4. What steps would you take to identify prospective suppliers? How would you qualify if
the supplier meets the requirements to bid on the janitorial contract?
To identify the prospective suppliers, we must check certifications, evaluate the
geopolitical climate, ask for inventory information, etc.,