“A Request for Quotation (RFQ), also known as an Invitation for Bid (IFB) is a business practice used by an organization to invite multiple suppliers to bid on an upcoming project or job prospect.”
For the offering client, the RFQ practice creates healthy competition between vendors, ensuring that the vendor with the fairest market-value offer is selected for the upcoming project or venture.
This is the time for vendors to showcase their business. The vendor will need to include various information as part of the bid, including payment terms, price per item, contract terms and company qualifications.
“One of the biggest issues is that companies are not prepared for RFQ requirements.”
If an RFQ is asking you to provide a business certification or system, and your business does not yet have it, note it down. If one client is asking for it, there is a good chance that other companies will be asking for it as well.
It is important for a business to effectively promote itself in the RFQ, and leave nothing to chance. Focus on your businesses core competitive advantage and business structure. If you have a ISO 9001 Quality Management System, COR Health and Safety System or ISO 14001 Environmental System, make sure you focus on these items, and outline how the procedures lend value to the client and scope of work.
“As a small sized enterprise, how can I keep track of potential RFQs and get on the appropriate bid lists”
Without a full marketing and business development department, keeping track of potential RFQs can be difficult. This is where your business online presence can become more valuable.
Organizations must understand and utilize effective practices of search engine optimization (SEO) to avoid this situation. Search engine optimization is strategy that requires organizational commitment and continual monitoring in order to ensure that online traffic is being directed your way. This being said, the results can pay off very quickly. If potential clients are looking to send out a RFQ, they will be looking to send it out to between 5-20 companies. Outside of companies they may be familiar with, they will use searches and approved vendors lists to make up the others. Having a well-managed website can be the secret success to receiving requests for quotes, securing job prospects, and consistently generating future income for an organization.
Magnolias Consulting Group is a business management consulting firm based in Edmonton, Alberta. As specialized enterprise and brand value consultants, they focus on helping clients with business development, value creation, operating procedures and digital marketing.