Tip of the Month for April 2011

Vendor RFQ's (Request for Quotes)

Vendor RFQ's can be created and sent to vendors as a by-product of entering quotes to customers.  This works similar to how purchase orders can be created as a by-product of sales orders for back ordered items. The main difference is that on quotes the user is not automatically prompted to create an RFQ like they are with back ordered items and purchase orders. However, just like you can flag a back ordered item to be updated to a purchase order, you can flag an item on a quote (including kit components) to be placed onto an RFQ that can be sent out to one or more vendors.

(1) While entering a quote on the detail tab of Order Entry, for any item that you want to add to the RFQ to be sent out to one or more vendors, right-click on the line item and select "Update Vendor RFQ List". You will not see anything happen immediately when you check on this option. But doing so will instruct Order Entry that upon exiting and saving the line that you want to add this item to the list of items to be placed on the RFQ form to be printed, faxed, or emailed to one or more vendors. (As an alternative to right-clicking on the line item, you can also click on "Edit" from the pull-down menu bar across the top of the window and then check on the same option.) If you are adding components to a kit, the same options are available in the "Edit Kit/Components" window by right-clicking on the component line or clicking "Edit" on the pull-down menu bar just like normal line items.

• When this option is checked, and you exit the line, you will then be prompted with a window where you can add one or more vendors to whom the RFQ for this item should be sent. If a vendor number is defaulted on the line item such as from the inventory master file on stock items or from the catalog, or if you have manually entered a vendor on the line item, that vendor will be defaulted as the first vendor so that adding them to the RFQ list will be as easy as clicking on the [Add] button. From within this window, you can add one or more vendors to the list as desired. Also for each vendor you add, you can select and/or edit the contact's name, the method (printed form, fax, or email), and the fax # or email address. Finally you are given an option that you can check if desired that allows easily adding this vendor to all items on the quote.
• Adding vendors in the RFQ list does not immediately nor automatically generate (print or send) the RFQ forms out to vendors. This is a separate step that will be discussed next. This process is to allow maximum flexibility in determining which items will be sent to which vendors on RFQ forms when you do get to the next step.

(2) Once you have finished entering all line items with any information you do have such as stock numbers, descriptions, additional comments, auxiliary descriptions, etc. and have added desired vendors to the RFQ list either globally for all items or by individual items, then you are ready to create the actual RFQ forms. To do this you can click on "File" from the pull-down menu bar across the top of the window and then click on "Generate Vendor RFQ". You will then be given a summary window listing out the vendor(s) that have been added to one or more items on the quote.

• You will then be able to enter a date, change the “Requested By” name, a message for emails, fax cover sheet comments, as well as a General Message to be printed on the RFQ form.
• You can elect to have each request logged or not. When an RFQ is logged, it is added to the RFQ Log so that it will show up in the Vendor RFQ Log Viewer program as a "Pending" request. From within this program, RFQ's can be acknowledged as received (back from the vendor), resent (via fax or email) to the vendor, reprinted, or canceled.
• An option is provided by clicking on the [Preview] button that will allow you to preview how the vendor RFQ forms will look as a PDF document. After previewing the RFQ forms, then you can close out of the preview and return to this window where you can cancel out (and go make changes to vendors and items on the list), or continue by clicking on the [Print/Send] button to actually generate the actual RFQ forms.

(3) If you elected to log this request, then you can track the RFQ's just generated using the Vendor RFQ Log Viewer program. This program is located on the Purchasing Management-->Inquiry menu. This program can be used to see which RFQ's are pending, which have been received/acknowledged, resent, reprinted, canceled, etc. From within this program you can easily resubmit a request to one particular vendor without have to resend them all.

• There are 2 ways to flag an RFQ as acknowledged or received back from the vendor. The first is within the Vendor RFQ Log Viewer program just mentioned.
• The second method is by entering certain applicable data in Order Entry that would lead the Order Entry program to detect that you may have received responses back from vendors and have made a decision on which vendor to buy from (based on cost, availability, etc.). In Order Entry, if Unit Costs, Vendor Numbers, or Promised Dates (on the header or detail) are entered or changed from their original values, then the Order Entry program will prompt the user with an opportunity to flag all RFQ's generated from this quote as received.

For more detailed information on Vendor RFQ's, please refer to the Answers On-Line Help under Order Processing-->Daily Processing-->Quote Processing-->Vendor Request for Quote (RFQ) and under Purchase Orders-->Inquiry-->Vendor RFQ Log Viewer.