RFQ, RFI, RFP, ITB Procurement Alphabet Soup
RFQ, RFI, RFP, ITB Procurement Alphabet Soup
By | E-Procurement Software
What do these terms mean?

How many of you reading this article have ever issued a Request For Quotation (RFQ) with the genuine intention of actually placing an order with the winning bidder ?

We use the word genuine carefully.

Traditionally we issue RFQ’s to get better prices/terms or opportunities  –  Typically we might ask ourselves,   “Is Supplier A giving me a better price than Supplier B”  ?  Or is the product being offered comparable to the other being offered and are either what I actually want ?

Well yes we use RFQ’s for that task but that’s not all we use RFQ’s  for !

A lot of RFQ’s are issued with the intention of never actually issuing an order to the bidders.  Why is that ?   Why bother in issuing them at all then ?

Is it because they are a misused tool  .. or perhaps simply misunderstood !

Many times an RFQ is issued to run a theoretical academic exercise its like a “What if I had this project how much would it cost” and “what should my budget numbers be ?”

But that’s not an RFQ really – that’s called an RFI and yes they are different.

Also, RFQ’s  are used to re-establish relationships vendors to whom you haven’t recently reached out to.  To make them feel involved in your process’s – also to perhaps update yourselves with their latest prices, procedures and abilities possibly for a future real RFQ exercise.

Do you have software in place that can distinguish between the two process’s ?  You don’t ?   Ah OK that’s where Eyvo’s eBuyerAssist procurement solution enters the picture ; Our purchasing  software is designed to recognize the difference between these functions.

RFQ, RFI, RFP, ITB is Procurement Alphabet Soup

And as we are on the subject – how many of you know the difference between an Invitation To Bid (ITB), a Request For Information (RFI),  RFQ and a Request For Proposal (RFP) ?  Think they are the same ? No.   They are not.

And that’s especially true in government contracting.

Here at Eyvo we do know the difference between these functions ; We advocate our clients use the right tool for the job and we provide them within our eBuyerAssist SaaS platform.

Recently, one of our clients,  CB Richard Ellis,  commissioned us to deploy a new eProcurement system that created RFI’s to invited vendors with an RFQ follow up ; we supplied them our cloud based solution and almost overnight, they’re entire vendor base was far more efficiently run with the push of a button.

If you feel you need the same then contact us and we will,

explain the difference between these functions and

show you how we can practically manage supplier engagements for each of those process’s.

No we are not going to explain how we do it here on this blog but if you were a client of ours ..we could be doing it for you right now 🙂

If you want to have a go and give us your explanation of these different process’s then please give it a shot just don’t regurgitate whats already on the web – we are familiar with that ; give us your own unique insights.

To find our more about how Eyvo eProcurement Solutions can help your organization – Contact us now.

call
Talk To An Expert

USA +1 888 237 9801
UK +44 (0)560 307 4470