Requests for quotation: obtaining offers that can be compared fairly

An RFQ asks suppliers to price the same requirement so offers can be compared fairly. Record specification, quantity, UOM, response deadline and commercial assumptions. A price comparison is misleading when one offer includes freight and another excludes it, or when lead times differ materially.

DNA RFQs can include several suppliers, record quotations by line, compare price and lead time, and select offers before conversion to purchase orders. Auto-select can identify low-price offers, but the buyer still evaluates suitability. The conversion entry checks that the RFQ has been saved, that its line set has not changed, and that each line has a positive quotation somewhere and a selected supplier. These checks do not independently prove that the selected quotation is the positive one or that every edited value is saved; review the actual award and purchase-order preview.

Why comparable requirements matter

An RFQ creates a common basis for supplier responses. Without it, one supplier may quote a different specification, another may exclude delivery, and a third may assume a longer lead time. Their totals can look comparable while representing different supplies.

The requirement should therefore communicate the item or service, quantity, unit, relevant specification, expected timing, and commercial assumptions. Suppliers should understand the same question before the buyer compares their answers.

DNA's multi-supplier RFQ structure supports line-level responses and comparison. This is particularly useful when several items can be sourced from different suppliers, but it also makes the completeness of each response important.

A practical award structure

Three lines may be awarded to two suppliers. That can reduce cost but may create two deliveries and extra freight. Review the complete purchasing outcome before converting the RFQ into the resulting orders. A zero price usually means an incomplete quote, not free supply.

An empty or zero-priced line should be interpreted carefully. It may mean the supplier did not quote the item, misunderstood the scope, or expects a different arrangement. It should not automatically be treated as a free supply or a complete response.

Clarifications improve the comparison

A supplier may offer an alternative product. The alternative can be valuable, but its suitability must be understood before treating its price as equivalent to the specified item. Warranty, compatibility, and operating requirements can affect the business value.

Similarly, a supplier's payment condition may transfer more risk or funding burden to the buyer. A large advance requirement can make an apparently low purchase price less attractive under the company's circumstances.

Automation supports judgement

DNA's automatic selection compares positive quoted prices after an attempted conversion to home currency. In the reviewed implementation, a missing exchange rate can fall back to 1. Verify the currency and available rate before relying on the ranking. The result does not establish technical suitability, acceptable timing or the full cost of awarding lines to several suppliers.

A useful RFQ outcome explains the comparable offers, any material differences, and the reason for the chosen supply. The subsequent purchase orders should preserve that accepted arrangement so that receiving and finance can evaluate what follows against the same basis.