{"id":215,"date":"2024-10-07T17:00:00","date_gmt":"2024-10-07T17:00:00","guid":{"rendered":"https:\/\/xamai.com\/rfq\/"},"modified":"2026-05-19T12:32:07","modified_gmt":"2026-05-19T18:32:07","slug":"rfq","status":"publish","type":"post","link":"https:\/\/www.xamai.com\/en\/blog\/rfq","title":{"rendered":"What is RFQ in SAP Business One?"},"content":{"rendered":"

Learn about the RFQ tool that allows you to make quotation requests efficiently and compare RFI vs. RFQ vs. RFP What is the difference?<\/em><\/p>\n

<\/p>\n

The RFQ (Request For Quotation) (Quotation Request) is a tool of SAP Business One, designed to request a quotation from suppliers or potential suppliers for a service or a product.<\/p>\n

SAP Business One sends purchase quotations to business partners electronically, and also allows you to automatically generate a quotation submission form based on the Web. Business partners can send their offers directly and the data and information in SAP Business One are updated accordingly<\/p>\n

How does this tool work?<\/h2>\n

The operation of this tool is simple: a quotation request is created in SAP Business One, placing the required items, the date they are needed, and the quantity of items requested. In the finance tab, the check box to create an online quotation is marked, which will trigger an alert that sends an email to the supplier (previously configured email), which includes a link.<\/p>\n

Upon entering it, a web page will open where the supplier will place the quantity (if they have sufficient stock requested or not, but they have a certain quantity) and the price per item. If delivery is not possible on the requested date, a new date will be added. Once this process is completed, the supplier clicks send and the changes will be automatically reflected in the quotation request within SAP Business One. Even the prices of the requested items, the delivery date proposed by the supplier, and the total number of items that can be delivered based on availability will be visible.<\/p>\n

Prerequisites for the RFQ:<\/span><\/h3>\n
    \n
  • Integration Framework<\/li>\n
  • RFQ Scenario Installed.<\/li>\n
  • Mailer Configuration.<\/li>\n
  • Suppliers must have a registered email address.<\/li>\n<\/ul>\n

    Features.<\/span><\/h3>\n
      \n
    • SAP Business One sends purchase quotations to business partners electronically.<\/li>\n
    • Automatically generate a web-based quotation submission form.<\/li>\n
    • Business partners can submit their offers directly, and the data in SAP Business One is updated accordingly.<\/li>\n<\/ul>\n

      Benefits<\/span><\/h3>\n
        \n
      • Suppliers can respond to online quotations.<\/li>\n
      • Information in SAP Business One is updated in real time.<\/li>\n
      • Buyers can compare quotations and place a purchase order for the best option, with automatic entry into SAP Business One.<\/li>\n
      • Automated routine tasks.<\/li>\n<\/ul>\n

        Despite the great advantages of the RFQ, the process has certain disadvantages. While the request for quotation reduces processing times to attract suppliers, it can also potentially affect competition.<\/p>\n

        Since the quotation system works by invitation, it significantly limits the number of participating companies.<\/p>\n

        However, it also allows for a deeper examination since the number of quotations corresponds to the number of suppliers who were invited to bid, there are more opportunities to thoroughly analyze the bidders in the shortest possible time.<\/p>\n

        That said, given that the group of competitors is relatively small, there is also more room for suppliers to take advantage of the bidding system and conspire to affect prices or the terms of the agreement.<\/p>\n

        <\/h3>\n

        A request for quotation follows six processes:<\/span><\/h3>\n

        Identify requirements and prepare the bidding document (RFQ).<\/span><\/h4>\n

        This step consists of defining what needs to be acquired, whether goods or services. Technical characteristics, quantities, and delivery deadlines are identified, as well as additional requirements such as after-sales support or maintenance.<\/p>\n

        Once the requirements are clear, a Request for Quotation (RFQ) is prepared, a document that describes in detail everything the company expects to receive, including the terms and conditions of the potential purchase.<\/p>\n

        Determine the list of suppliers.<\/span><\/h4>\n

        With the RFQ ready, a list of potential suppliers is selected. It is essential to choose suppliers who have the ability to meet the requirements established in the RFQ.
        To do this, you can resort to suppliers with whom you have worked before or consider new options.<\/p>\n

        Send RFQ.<\/span><\/h4>\n

        Once the list of suppliers is defined, the next step is to send them the RFQ. This is done via email, specialized bidding platforms, or online purchasing portals.
        It is at this stage that each of the suppliers will review the document and submit their offers.<\/p>\n

        Collect responses and analyze them.<\/span><\/h4>\n

        After receiving the suppliers' offers, an analysis of each one is carried out, comparing prices, delivery times, product or service quality, payment terms, and other factors.
        At this point, both the cost and the added value offered by each proposal should be evaluated.<\/p>\n

        Negotiate the terms and conditions and award the contract to a supplier.<\/span><\/h4>\n

        Once the offers have been analyzed, the negotiation phase begins with the preselected suppliers. Prices, delivery times, payment terms, and other terms that are relevant to both parties can be adjusted, and once the negotiation is concluded, the supplier who best meets expectations is selected and awarded the contract.<\/p>\n

        Establish a contract with the supplier and begin integrating them.<\/span><\/h4>\n

        This contract ensures that both parties understand their responsibilities and obligations. After signing the contract, the supplier's integration into the company's processes begins.<\/p>\n

        Auction options<\/span><\/h3>\n

        It is common to hold an auction during the quotation or proposal request process. Procurement and supply teams may decide to add this additional step if they receive similar offers from suppliers.<\/p>\n

        Suppose the team wants to obtain the best price, so they conduct an auction that lasts 24 hours.<\/p>\n

        Once the contract has been selected and awarded to the supplier, the company and the supplier sign a contract. Generally, in quotation requests, a company selects the supplier who will deliver the goods or services with the lowest offer within its specifications.<\/p>\n

        Prepare the RFQ document<\/span><\/h3>\n

        The RFQ document should address the following questions:<\/p>\n

          \n
        • Objectives<\/li>\n
        • Payment terms<\/li>\n
        • Required quantities<\/li>\n
        • Estimated work hours<\/li>\n
        • Project duration<\/li>\n
        • Contractual terms and conditions<\/li>\n
        • Requirements for submitting quotations<\/li>\n
        • Deadlines<\/li>\n
        • Evaluation criteria<\/li>\n
        • Award and closure process<\/li>\n<\/ul>\n

          The more information you provide about your requirements, the better the quotations you will receive, so it is important to invest a good amount of time in preparing the quotation request summary.<\/p>\n

          Use a document management tool to track all document interactions, comments, and contributions from all stakeholders. <\/p>\n

          What does the installation look like?<\/h2>\n

          To install the RFQ connector, you must complete the Integration Solutions add-in and the Integration Solutions installer installation.<\/p>\n

          After that, the RFQ connector configurations are performed in the Integration Hub administration console and in SAP Business One.<\/p>\n

          For more information about the RFQ connector configurations, you can always contact any of our SAP consultants at Xamai who can help growing companies to have better control of this tool.<\/p>\n

          RFI vs. RFQ vs. RFP: Which does your company need?<\/h2>\n

          To help streamline procurement and sourcing processes, companies use a Request for Information (RFI), a Request for Quotation (RFQ), and a Request for Proposal (RFP).
          These requests provide structure and facilitate comparison in vendor and seller evaluations. While the three requests have some characteristics in common, each has its own use.<\/p>\n

          \"Miniaturas<\/h3>\n

          When to use an RFI<\/span><\/h3>\n

          An (request for information) RFI is particularly useful when a company is in the early stages of the purchasing process and is trying to determine its specific requirements for a good or service. At a minimum, an RFI is followed by an RFQ or RFP, but some companies skip the RFI and go directly to the RFQ. Some companies like the additional step of an RFI for additional due diligence in their hiring process.<\/p>\n

          When to use an RFQ<\/span><\/h3>\n

          Generally, a request for quotation is used when the expense or service requested is not necessarily strategic, but is more price-oriented.<\/p>\n

          It's not ideal for all procurement situations, but it works well when a company:<\/p>\n

            \n
          • Knows exactly what, how much, and the quality of the products it needs.<\/li>\n
          • Are you purchasing goods (or highly commoditized items)?<\/li>\n
          • Are you looking for the best possible price or the fastest delivery time?\n<\/li>\n<\/ul>\n

            When to use an RFP<\/span><\/h3>\n

            RFPs, or request for proposals, are used for critical projects or when companies are acquiring complex categories. Raw materials, fuel, and logistics are some examples. They are not usually used for one-off purchases. Using a request for proposals is more useful when a company:<\/p>\n

              \n
            • Is spending a significant amount of money?<\/li>\n
            • Requires multiple stakeholders to participate in the evaluation process and provide<\/li>\n
            • Feedback on the offers.<\/li>\n
            • Wants to be presented with creative solutions.<\/li>\n<\/ul>\n

              RFPs are also useful for eliminating biases in the evaluation process and promoting solid bidding.<\/p>\n

              After reviewing all proposals carefully, it is essential to choose an ideal supplier that meets the evaluation criteria or offers the lowest bid.
              Once the winning supplier has been chosen and all participants have been thanked, it's time to sign the final contract.<\/p>\n

              RFI, RFQ, and RFP<\/h2>\n

              Which request is best for your company? The choice of the best will depend on your needs.<\/p>\n

              An RFI is the best option when you want to explore new suppliers or simply try to determine the most important specifications.<\/p>\n

              An RFQ is the best option when you know exactly what you need and when you need it. An RFQ should be used when the main concern is getting the best price.<\/p>\n

              An RFP, on the other hand, focuses on the overall value of a supplier. It is the most formal and requires more time, but allows for a more creative and strategic bidding process for large projects and significant expenses.<\/p>\n

              Conclusion<\/span><\/h4>\n

              The request for quotation is one of the most influential tools for buyers to research suppliers' products and services and request additional information about those products and services, as well as the prices and terms of the agreement.<\/p>\n

              It is fundamental that medium and large companies know how to carry out the quotation request process efficiently. It is also essential to find the right supplier for your business, as this connection can bring great benefits in the coming years. Fostering this relationship is vital for both parties.<\/p><\/p>","protected":false},"excerpt":{"rendered":"

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