AutoCount Request for Quotation
A Request for Quotation (RFQ) is a formal procurement process in which a company invites multiple suppliers to submit detailed pricing, terms, and conditions for specific goods or services. It helps organizations compare options, ensure competitive pricing, and select the most suitable vendor efficiently.
What is a Request for Quotation (RFQ)?
A Request for Quotation (RFQ) is a structured procurement process in which a company formally invites suppliers to provide detailed pricing, delivery timelines, and terms for specific products or services they intend to purchase. This process enables businesses to compare multiple offers, ensure cost-effectiveness, maintain transparency, and choose the most suitable supplier based on value and reliability.
“It is important to know the difference between a Purchase Request and an RFQ:
- Purchase Request: This is an internal company document used to ask for approval to buy items.
- Request Quotation (RFQ): This is the formal request sent to outside suppliers to get price quotes, and it is done after the internal Purchase Request is approved.”
Why It's Important
Centralizing your supplier quotations in AutoCount delivers transformative benefits to your business.
Centralized Tracking
All past quotes are saved in one place, so you never lose the price records. A single source of truth for all procurement data.
Price History
Track old quotes to check if prices are fluctuating over time. This data empowers you to negotiate better prices in the future.
Fair Comparisons
By using the copy function, you ensure all suppliers are quoting for the exact same items, making comparison seamless.
Supplier Management
Review past performance to check if a supplier is reliable, delivers on time, and maintains high-quality standards.
Audit-Friendly
Keeping complete records makes it incredibly easy to follow internal company rules and pass external audits with flying colors.
Key Steps in AutoCount
The standard workflow from identifying a need to finalizing a purchase order.
Create a Purchase Request
A user or department creates a Purchase Request to get internal approval for needed items.
Approval Process
The Purchase Request is reviewed and digitally approved by the appropriate authority.
Create Request Quotation
Once approved, proceed to Request Quotation in AutoCount and send out requests to selected suppliers.
Supplier Responses
Suppliers send their quotes, including pricing, delivery terms, and specific conditions.
Review & Compare
The purchasing team evaluates the best offer based on price, quality, and delivery timeline.
Convert to PO
Finalize the process by converting the winning Request Quotation into a formal Purchase Order (PO).
The "3-Quote" Practice in Malaysia
A gold standard in Malaysian corporate governance and procurement.
In Malaysia, companies usually follow the “3-Quote” practice, meaning they must get quotes from at least three different suppliers before making a purchase decision.
Why It’s Used:
- Competitive Pricing: Ensures the company is not overpaying.
- Fairness: Prevents bias and reliance on a single source.
- Transparency: Vital for corporate governance and auditing.
Common Steps in the 3-Quote Process:
- Identify Need: Creating the initial Purchase Request.
- Request Quotes: Sending RFQs to at least three suppliers.
- Evaluate Offers: Comparing price, terms, and quality.
- Make Decision: Selecting the best value offer.
- Place Order: Converting the quote to a PO.
Benefits of the 3-Quote Rule
Ensures informed decision-making by providing multiple options for comparison, helping businesses choose the most cost-effective and reliable supplier.
Better Budget Control
Helps in managing company spending by comparing different price points.
Risk Mitigation
Reduces the risk of overpaying or being tied to a supplier who isn’t offering the best value.
Supplier Relations
Encourages suppliers to offer competitive pricing, strengthening the overall supplier relationship.
Using the Copy Concept in AutoCount for Request Quotation
How the Copy Concept Works
Create Request Quotation
Start by creating a Request Quotation (RFQ) for the required items or services. Enter all necessary details such as item name, quantity, and specifications, just as you would when requesting from a single supplier.
Copy to Different Suppliers
Once the RFQ is created, use the copy function to duplicate the same items to multiple suppliers. The system automatically retains all item details while allowing you to assign a different supplier for each copy.
Forward to Suppliers
Send the copied RFQs to each selected supplier. This ensures all suppliers receive identical item details and terms, making quotation comparison fair and consistent.
Receive Quotations
Suppliers will respond with their quotations. All received quotes are recorded within AutoCount, allowing you to review and compare pricing, delivery terms, and other conditions easily.
Convert to Purchase Order
After selecting the best supplier, you can quickly convert the approved Request Quotation into a Purchase Order (PO), completing the procurement process efficiently.
Benefits of Using the Copy Concept
Simplifies the quotation process by allowing the same request to be duplicated across multiple suppliers, ensuring accuracy and saving valuable time during procurement.
Efficiency
Saves time by avoiding repeated data entry and reducing manual errors.
Consistency
Ensures all suppliers receive identical details for fair and accurate comparison.
Convenience
Simplifies sending requests to multiple suppliers in just a few steps.
Quick Decision Making
Helps teams compare quotes quickly and choose the best supplier.
Frequently Asked Questions
What is the main difference between a PR and an RFQ?
A Purchase Request (PR) is an internal document used to get permission from your manager or finance department to buy something. A Request for Quotation (RFQ) is external; it is the actual document you send to suppliers to ask for their prices once your internal request is approved.
Why is the "Copy Concept" useful in AutoCount?
The Copy Concept allows you to create one master RFQ and duplicate it for multiple suppliers. This ensures consistency (all suppliers receive the exact same specs) and efficiency (you don’t have to type the same list of 50 items three times).
Is the 3-Quote rule mandatory in Malaysia?
While not a government law for private companies, it is a standard industry practice and often a requirement for corporate governance, ISO standards, and audit compliance. It protects the company from overpaying and reduces the risk of internal fraud.
What happens after I choose the best quote?
In AutoCount, you can directly convert the selected Request Quotation into a Purchase Order (PO). This formally places the order with the supplier and ensures all terms from the quote are carried over exactly as agreed.
Can I store supplier quality ratings in the RFQ system?
Yes. By storing all quotes in a centralized system like AutoCount, you can review a supplier’s past quotes, delivery timelines, and quality over time, which helps in effective Supplier Management.
Streamline Your Quotation Process with AutoCount
Manage supplier quotations efficiently with AutoCount.
Create and send Request for Quotations, compare multiple supplier responses, and make better purchasing decisions with a faster, more organized procurement workflow.