The Request for Quotation process in Sourcing with SAP S/4HANA is an essential procurement step where businesses solicit price proposals from potential suppliers. Key users typically manage this process to secure competitive supplier bids.
The following video explains the specific steps in the RFQ process.
Video Summary
- Create RFQ: The key user creates an RFQ and sends it to selected suppliers.
- Select suppliers: The key user chooses suppliers to receive the RFQ.
- Send RFQ: The system sends the RFQ electronically to selected suppliers.
- Receive quotations: Suppliers submit quotations through SAP S/4HANA.
- Evaluate quotations: The key user and relevant stakeholders evaluate quotations based on predefined criteria.
- Select supplier: Based on the evaluation, the key user chooses the best supplier and starts procurement process.
- Update RFQ status: Once the supplier is selected, the key user updates the status of the RFQ in the S/4HANA system, indicating that the procurement process is complete.
The key user manages the RFQ process in S/4HANA, from creating and sending RFQs to evaluating quotations and selecting suppliers, finally updating the RFQ status upon completion.
Manage Requests for Quotation
To manage requests for quotation, you can use the Manage Request for Quotations app. You can use this app to create requests for quotation (RFQs) in SAP S/4HANA. There are several different processes that you can start from within the Manage RFQs app:
- You can send your created RFQs to SAP Ariba Sourcing, where the bidders and suppliers can place their bids. After you have decided which bidder or supplier should receive the award, you send the awarded quotation back to SAP S/4HANA. A purchase order or a contract is created automatically in the background. You can display it within the Manage Purchase Orders app or within the Manage Purchase Contracts app.
- To request only price and quantity information or shipping costs, you send these RFQs later to SAP Business Network, where the suppliers can create their bids. These bids are sent back to SAP S/4HANA, where you can award one of them.
- You can also create price requests in SAP S/4HANA and send them directly to your supplier via e-mail or as a printed version by mail. You receive the quotations from your suppliers and then create the quotations in SAP S/4HANA manually.
- You can add bidders manually by typing the supplier names directly into the supplier field, or by selecting the supplier from the generic search help.
You can use the Get Bidder Proposals functionality to check whether there are any suppliers for the selected materials and the selected purchasing organization. The system proposes a list of suppliers that have delivered the required materials or services for the selected purchasing organization in the past. Suppliers that are used by other purchasers are also included, if applicable.
You can select one or several suppliers from the suggested list. If you have added multiple materials to your RFQ, the Number of Covered Items in the Bidder Proposals pop-up list shows you the number of materials from the current RFQ that the supplier has delivered in the past.
Flexible Workflow for Requests for Quotation
Additionally you can use the flexible workflow function for processing RFQs.
For example, an RFQ that hasn't yet received a status needs to be approved or rejected to ensure the workflow process. The flexible workflow for requests for quotation provides several options for determining the approver, such as the manager of the workflow initiator, and assigning specific users. If a workflow with one or more steps is activated and the configured start conditions are fulfilled, the approval process is initiated.
Situation Handling for Requests for Quotation
You can use the Situation Handling functionality as well. Be aware that there are currently two apps available for situation handling:
- Manage Situation Types
- Manage Situation Types Extended
Currently, in the Manage Situation Types app, there is one template available that could be used in conjunction with the processing of requests for quotation:
Technical Name: PROC_RFQLOWNUMBEROFQTN
You can use this standard template for the following situation:
You want your purchasers to be automatically informed when an RFQ is close to the quotation deadline but only a small number of supplier quotations have been received.
Usually, purchasers can see the number of received quotations as well as the quotation deadline only if they open an RFQ and check this information. This standard template enables you to inform your purchasers about the approaching quotation deadline of an RFQ with a low number of received supplier quotations, so that the purchasers can keep an eye on such RFQs and contact the invited suppliers without submitted quotations if needed.