Procurement or Sourcing professionals often raise RFQ's (Request for Quote) to get quotes from suppliers, or sometime looking for new potential suppliers to come forward and submit his offer. Even today most of the small and medium size business still conduct sourcing events manually, that means they get an indent request from the end user group in their company, they compile an email which describes what they are looking to buy and sends bunch of email's to approved or new suppliers which they have in their database.
A study conducted by eSupplierGlobal found that out of 15 RFQ email sent to suppliers only 3-4 quotes are received on average by the Buyer, there are several reasons that the RFQ's don't convert into meaningful quotes or offer, here's outcome of our research.
We noticed that most of the procurement or sourcing managers don't have a formal training of creating RFQ's professionally, they mainly forward the information which is received by the user team to the suppliers, and in most cases user team provides very limited specifications which thus require lot of two and fro communication with User Buyer Supplier, this creates delay in communication and in such cases Suppliers miss the quote deadlines or even interest to quote.
Most of the suppliers we spoke to don't follow up for additional questions/information which would require in order to compile a quote, so it is advisable for the Buyer before sending an RFQ they should proof read or analyze the specification which they would share to suppliers for a quote, adding more information like Delivery date, Location, Packaging type, Terms & Condition or any other relevant information which the supplier should know before sending a formal quote.
There are two types of sourcing, Part number base or Specification base sourcing, If you are looking to source a standard product of a given make, it's ideal to get exact part number or model number so the supplier can quote immediately without delay as they have price list handy to check and price.
Items which are custom built or source to specification, Buyers should get involved with the user group and have an detailed discussion before finalizing all the relevant specification details and use drawings sheet where ever possible to allow suppliers understand what exactly are looking to source.
If the Buyer is looking to Buy the product/service for the first time, they should conduct online research to find qualified suppliers and should have valid supplier contact email address to whom they would send the RFQ email, finding new suppliers is a tedious task for Buyers as there are no more printed Yellow pages or Industry specific trade directory's available today.
Using smart eSourcing tool allows Buyers to built RFQ which are more effective as the tool has ready to use RFQ templates which Buyers can use, it saves time as well. In addition to this eSourcing tools also allow supplier discovery with ease no buyer effort required, just build an detailed RFQ with specification/drawings and the AI tool sends your RFQ details via email to potential suppliers, Suppliers can quote online and with a click you can create an compression statement in MS Excel.