Procurement Glossary & Terminologies
eRFX or electronic request for [x], wherein [x] could be information, quotation, proposal, or tender. eRFX is used by procurement professionals to gather quantitative and qualitative data from potential suppliers through procurement softwares. Traditionally, suppliers used to share such information over phone, spreadsheets, email or fax, which made it difficult for companies to compare and standardise across business verticals and categories. Using eRFX softwares, companies can define their RFX workflows through customised templates and independently compare submissions within seconds.
Types of eRFX
Request for Information (RFI) RFIs or Requests for Information is a formal process for collecting information of desired goods/services from potential suppliers. The document features specific answers as per the procurement requirements of the organisation which helps in developing strategies and maintaining a database of collected responses.
Request for Quotation (RFQ) Request for Quotation is the process of requesting a quote for desired products/services from a supplier which includes details like payment terms, price per item, contract tenure, type of material, and quality standards, among others.
Request for Proposal (RFP) RFPs or Requests for Proposal is a formal request made during an ongoing project wherein suppliers specify the proposal for goods/services to be procured. RFPs are instrumental in outlining the bids and contract terms which helps companies evaluate entries and identify the best vendor. Request for Tender (RFT)
RFT is an open invitation to obtain competing offers from suppliers participating in the eAuction. RFTs are usually much broader in scope as compared to RFPs, which also follows all legal requirements to help companies finalise the best vendor out of the lot.
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