| # Request for quotation procedure You can use the request for quotation (RFQ) procedure to request bidders (buy-from business partners) to provide you with an offer for goods and services. You can compare the received RFQ responses (bids) to select the one that best fits your requirements. These RFQ procedures are available: Manual RFQ procedure Use this procedure to manually create RFQs and send them to bidders. You can select the bidders to whom you want to send an RFQ manually, or based on the approved supplier list. Generate RFQ procedure Use this procedure to automatically generate RFQs and send them to bidders. The creation of RFQs and the assignment to bidders is performed in one of the generate sessions. Use the manual RFQ procedure to create an RFQ for one item. If you want to create an RFQ for several items and/or several item groups, the generate RFQ procedure is more suitable. The request for quotation (RFQ) procedure includes these phases: Creating and sending RFQs to bidders Receiving, negotiating, comparing, and selecting the bidders' responses Note On a request for quotation (RFQ) line, the item code can be blank. Therefore, the requester can request to bid for a new item. When the status of a response line that is linked to the RFQ line is Accepted, the item code becomes mandatory. Creating and sending RFQs Step 1. Request for Quotation (tdpur1600m000) Use the Request for Quotation (tdpur1600m000) session to: Create RFQs in the manual RFQ procedure View RFQs in the generate RFQ procedure RFQ generation occurs in one of these sessions: Generate Requests for Quotation (tdpur1220m000) Generates RFQs for a range of items or item groups and enables you to select the bidders to send the RFQs to. Convert Purchase Requisitions (tdpur2201m000) Converts purchase requisition lines to an RFQ. Generate RFQs from Contracts (tdpur3201m000) Copies purchase contract lines to RFQs and enables you to link the bidders to whom to send the RFQs. Transfer Planned Orders (cppat1210m000) Transfers the planned purchase orders from Order Planning to Procurement. If LN cannot find a buy-from business partner for the item, the planned purchase order can be transferred to an RFQ. Step 2. RFQ Bidders (tdpur1505m000)/ Add Bidders to RFQ (tdpur1221m000) This step only applies to the manual RFQ procedure. In the generate RFQ procedure, the generated RFQs are directly linked to the selected bidders. In the manual RFQ procedure, you can link bidders to RFQs as follows: Manually in the RFQ Bidders (tdpur1505m000) session Automatically in the Add Bidders to RFQ (tdpur1221m000) session, and optionally, based on an approved supplier list On the Bidders tab in the Request for Quotation (tdpur1600m000) session, you can view which bidders are linked to the RFQ. Step 3. Print Requests for Quotation (tdpur1401m000) After the RFQ is created and bidders are linked, you must print the RFQ in the Print Requests for Quotation (tdpur1401m000) session to send it to the bidders. Receiving, negotiating, comparing, and selecting RFQ responses Step 1. RFQ Responses (tdpur1506m000) RFQ responses received from a bidder can be specified in the RFQ Responses (tdpur1506m000) session. An RFQ response includes one or more response lines. Step 2. RFQ Negotiations (tdpur1606m000) Optionally, you can negotiate the bidder's responses and specify your counter proposals in the RFQ Negotiations (tdpur1606m000) session. The latest negotiation response information, which includes prices, discounts, and dates is synchronized to the RFQ Responses (tdpur1506m000) session. Counter proposal information is not synchronized. Step 3. RFQ Compare Responses (tdpur1600m100) You can compare and rank the RFQ responses using the RFQ line, RFQ bidder, and RFQ response sessions. In the RFQ Compare Responses (tdpur1600m100) session, the response lines with the status Responded, Negotiating, or Accepted can be compared and ranked. This session helps you select the best responses for conversion. You can perform an analysis for a single line or all the lines of the RFQ. The response lines are compared and ranked based on: Objective and subjective criteria, if a criteria set is specified for the RFQ. Prices and amounts. Prices and amounts can also include landed costs (bidder and third party). Note: Although no criteria set is required for a comparison based on prices and amounts, you can also specify prices as criteria in a criteria set. You can use the following sessions to view the ranked response lines, which are displayed as tabs in the RFQ Compare Responses (tdpur1600m100) session: RFQ Compare Responses Based on Criteria Set (tdpur1511m000) RFQ Compare Responses Based on Prices (tdpur1511m100) RFQ Compare Responses Based on Criteria Set Grouped by Bidder (tdpur1511m200) RFQ Compare Responses Based on Amounts Grouped by Bidder (tdpur1511m300) For more information, refer to: Specifying criteria and criteria sets for RFQs. Calculating total scores for criteria Ranking RFQ responses Step 4. Convert RFQs (tdpur1202m000) After accepting a response line, for which you set the status to Accepted, you can use the Convert RFQs (tdpur1202m000) session to convert the response line to a purchase order, purchase contract, or price book. For a selected response line, you can start this session as follows: By clicking Convert RFQs on the appropriate menu of the RFQ Responses (tdpur1506m000) session. This command is enabled only if the Conversion Action field is set to Convert and the Conversion Type field is specified in the RFQ Responses (tdpur1506m000) session. By clicking Convert and then Convert to Order, Convert to Contract, or Convert to Price Book on the appropriate menu of the RFQ Compare Responses Based on Criteria Set (tdpur1511m000), RFQ Compare Responses Based on Prices (tdpur1511m100), RFQ Compare Responses Based on Criteria Set Grouped by Bidder (tdpur1511m200), or RFQ Compare Responses Based on Amounts Grouped by Bidder (tdpur1511m300) sessions. Step 5. Delete Requests for Quotation (tdpur1205m000)/ Process Non-Converted RFQ Responses (tdpur1223m000) Use the Delete Requests for Quotation (tdpur1205m000) session to delete RFQs that are expired, have no response returned, or were never linked to a bidder. Use the Process Non-Converted RFQ Responses (tdpur1223m000) session to process response lines for which the Conversion Action is Ignore, or delete response lines for which the Conversion Action is Delete. Related topics Specifying criteria and criteria sets for RFQs Calculating total scores for criteria Ranking RFQ responses Sourcing Overview of RFQ handling RFQs - additional processes |