The purpose of this document is to provide a detailed description of the sourcing with RFx (Request for Quotation) procurement business process.
An RFx is an invitation extended to a vendor by a purchasing organization (purchase department) to submit an RFx response for the supply of products under certain terms and condition. An RFx contains general information such as the vendor's address, total quantities and delivery dates for the materials and the quotation submission date. In case of operational sourcing an RFx can be created with reference to a purchase requisition. The information is copied from the requisition. If the RFx is created without any reference, these details will be entered manually.
This process enables a purchasing employee to order new goods or service items that are being purchased for the first time in the organization. As such, there is no established source of supply for the item. An estimated item price is always provided by the purchasing employee for managerial approval. A request can be created in ERP (Purchase Requisition) or SRM (Shopping Cart).
Subsequently, the operational purchaser will be required to take over this approved open requirement to transform it into a tendering document (i.e. RFx) for a selected group of bidders for competitive price bidding. This RFx document is subjected to managerial approval to adhere to the purchasing policy within the organization. Once RFx responses have been submitted by the bidders, it allows the operational purchaser to compare the various quotations and select a winner. The winning quotation is also subjected to another round of managerial approval, ensuring that the selection has been made with due diligence. A purchase order is then created, thereby completing the requirement raised by the purchasing employee in the form of shopping cart (SRM) or purchase requisition (ERP).
A request from a buyer/purchaser to a supplier/bidder to submit a quote for goods or services according to specified criteria.
Business transaction category: BUS2200
Technical name: SRM RFx
Other names: Bid Invitation, RFx, RFQ, Request for Quotation, RFQ Request, Request for Quote
Related Business Objects
Business Process Documentation
The following business process documentation guides you through the steps from creating the requirement for progress monitoring to the creation of a purchase order document awarded to a winning supplier/bidder.
It also describes the steps a purchaser must perform to create an RFx document from the SRM sourcing cockpit or from scratch, and publish the RFx document for bidder’s submission with workflow approval. A purchase order is created once a winning quotation has been determined.
Extended Tendering Functions
New tendering functionality has been developed to support extended bidding processes. The new tendering functionalities are:
- Tender fee that allows a supplier to access the bid invitations after the fee has been paid
- Earnest money deposit submitted by a supplier as a bid guarantee
- Two envelope support that separates the technical bid from the price bid for separate evaluation
- Multi-party verification at RFx Response opening to conduct a simultaneous logon by multiple parties when either the technical or price responses are opened
Frequently Asked Questions About System Behavior
- Behavior of bidder e-mail address update
- Company code in Bid Invitation
- Debugging hints for SRM RFx creation process
- Extended Tendering Functions
- Item handling by Excel in RFx
- RFx Currency is not converted into the local currency
- Sequence number from Download Response Comparison in RFx
- Target Value behavior in RFx
- Transaction type while creating follow on RFx of preceding RFx
- Two contact person for same bidders can access Bid invitation from each other