Purchasing and Supplier Management Assignment 1: RFQ Process

This assignment solution addresses the Request for Quote (RFQ) process within purchasing and supplier management. It outlines the necessary information to gather before starting the RFQ, including documents needed from the supplier and how to assist them. The solution details the information required to complete the RFQ document, emphasizing the importance of general terms and conditions, pricing templates, and awarding selection criteria. It suggests inviting a minimum of 5-8 suppliers for competitive bidding and provides steps to identify and qualify prospective suppliers, including checking certifications, evaluating the geopolitical climate, and analyzing financial and operational capacity. The solution explains how to conduct the RFQ process using written methods like email, and the steps to complete it, including selecting the successful supplier and notifying unsuccessful bidders. The solution covers the importance of the RFQ process in procurement and supplier management, highlighting its role in ensuring transparency and fairness.

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.,

Check certifications: Make sure the suppliers are certified to your quality standards, as
well as ISO, QS, and more.
Evaluate the geopolitical climate: Whereas a few abroad resources will offer the most
reduced costs, dubious labor relations or political change will take off you whereas not
your required item.
Ask for inventory information: Having information into the supplier’s inventory might
be profitable, it can be considered as a sign to show their commitment and capacity of
what and when they can deliver potential orders.
It is the responsibility of the purchasing buyer to qualify the suppliers, to qualify them,
we must evaluate the offers, consider the service levels, analyze their operational
capacity, technical capability determination and financial analysis.
Evaluate the offers: Purchasing buyer should use some sort of evaluation procedure
before selecting an offer to guarantee that all aspects of the organization's demands
are considered.

Analyze their operational capacity: Check to see if the possible supplier can effectively
schedule orders and maintain track of current production processes to meet the
customer's deadlines. All these characteristics should be able to be compared using the
customer references provided by the supplier.
Technical capability determination: Check to see if your possible provider has all the
essential equipment, tools, and personnel to suit your needs. You can find out by
looking at past performance records and actively participating in industry activities.
Financial analysis: Financial analysis is frequently necessary to meet audit compliance
requirements and helps to identify overall supplier base risk concerns. Financial ratios
assist in the selection and qualification of suppliers based on financial strength,
leverage, and competitive advantage.
5. Once you’ve selected the suppliers for the RFQ, as the Buyer, how would you conduct
the RFQ? What steps would you take to complete the RFQ? Hint: How would you
conduct the RFQ? In person, auction, email etc… Explain which process you would
choose, how you would conduct it and why.

This procurement technique is employed under the terms of the procurement legal and
regulatory framework and, as a result, can only be requested in writing: email, fax, and
courier, but not over the phone. There are some restrictions on the amount of time
and frequency with which this approach can be utilized to procure identical items,
services, or work. This is to keep the procurement entity from dividing requirements to
accommodate them under the threshold level where the request for quotation method
can be used.
Quotations received in response to a request for quotation should be examined first to
ensure that they meet the technical specifications or scope of work of the demand, as
well as the request's administrative requirements.
To complete RFQ, select the successful supplier,
After determining administrative and technical compliance, a price comparison is done
between firms that have been proven to be compliant, and then a purchase order is
signed with the bidder who submits the lowest price proposal within the specified
delivery or completion date. To arrive at the best solution, a clarifying procedure and
small negotiations may be required. When the contract is signed, the process is
complete. Let the unsuccessful bidders know that the contract has been awarded and
thank them for their participation as we may need them again.