What do you need in order to run a successful RFQ?
Today’s Post is by Eli Razov, SafeSourcing Account Manager.
What do you need to run a successful RFQ? This is a question I am asked a lot. I would have to say it starts with data. Good data can make or break what can be considered a “successful RFQ”. So what do I mean by good data? It helps to do some market research to see where it stands at the time. Knowing this will help you understand if there will be an increase in price or if this is the right time to take this to market. The first step is to know what it is you are looking to procure. Full specifications, annual quantities, how often you order, and any manufacturer SKU’s is good information to have on hand. The second most important piece of data is current pricing, any recent invoices or quotes are best and the more recent the better. By knowing a current price of a good or service will show you true savings. Once you know what it is you need, how many you need, and how much it currently costs, the next step is finding out who you can get it from. This is personally one of my favorite steps, vendor research! The internet is a great source of information on this. Using a search browser, simply typing the good or service you need, will give you a list of companies in whichever area you are looking for. Sometimes this step can be difficult for specialty products or services. A good trick to use, if you know only one supplier or vendor name, is to use that name and type “competitor” after it. You will be given a list of companies that are in the same market. Be sure to contact these companies and “vet” them to know they truly provide what you are looking for. Once you know what you need, and who to get it from, now it is time to run that RFQ. Typically you contact the vendors, send in a request via fax or email, and wait for them to reply with any questions or modifications. Once all the questions are answered, they will give you a price based on their margins and send it back to you. From there you must decide if you need to order samples or decide purely off of price. Of course this is just a simplified version of the process; there are many more working parts behind the scenes. Once all of these steps are complete, you should have found a new low price for what you need. But what would you do if I were to tell you there is a simpler way of doing this? By using SafeSourcing, we do all of the leg work for you! From gathering data and building specification documents, to our vast list of vendors and suppliers, we ensure you get the best price for your needs without having to stress and spend your time on it.
For more information on how SafeSourcing can assist you or on our “Risk Free” trial program, please contact a SafeSourcing Representative, we have an entire team waiting to assist you today.