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Price inquiry: definition & important aspects for buyers
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Price inquiry in a nutshell:
A request for quotation is a formal request to potential suppliers to submit a binding offer for specific products or services. It enables the purchasing department to make a structured price comparison and forms the basis for negotiations and the final supplier selection.
Example: An automotive supplier sends a detailed request for quotation for 10,000 metal housings to three qualified suppliers with a response deadline of 14 days, whereby technical specifications, delivery conditions and desired pricing are precisely defined for a contract term of 24 months.
Contents
What is a price inquiry?
A price inquiry is a formal process in purchasing controlling in which potential suppliers are asked to submit price offers for specific products or services. It is used to determine current market prices, make cost calculations and create a basis for further negotiation techniques. Price inquiries are essential in order to establish comparability between suppliers and make economic decisions.
Core elements of a price inquiry
Importance of the price inquiry in purchasing
In the procurement process, the price inquiry is a key tool for obtaining transparency about market prices and supplier performance. It enables buyers to compare different offers in terms of price, quality and service. As a result, costs can be optimized, supplier relationships established and risks minimized.
Price inquiry: From manual processes to e-procurement
The price inquiry plays a decisive role in purchasing in order to determine market prices and negotiate optimal conditions. Building on the theoretical basis of the price inquiry, it is essential in practice to make this process efficient and error-free. Traditional methods reach their limits here, especially in view of the increased demands on procurement in modern procurement. A transformation to digital solutions is therefore essential in order to remain competitive and make optimum use of resources.
Old: Manual price inquiry process
Traditional approach: In the traditional RFQ process, supplier selections were contacted individually by phone, fax or email to obtain quotes for products or services required. This manual approach was time-consuming and error-prone, as each quote had to be requested and processed separately. Communication was often unsynchronized, which led to delays. In addition, offers were submitted in different formats, which made it difficult to compare them and prolonged the evaluation process. The lack of standardization and automation led to inefficiencies and increased operating costs. Challenges such as a lack of transparency, limited scope in supplier selection and the risk of human error characterized this approach.
New: E-Procurement
E-procurement: The modern implementation of the price enquiry process takes place via e-procurement systems that enable electronic processing. By using such digital platforms, price inquiries can be sent simultaneously to several suppliers and responses can be recorded centrally. Key innovations such as automated offer comparisons, standard formats and integrated communication modules significantly optimize the process. The benefits are significant time savings, increased data quality and improved transparency. Real-time data enables faster decision-making and integration with ERP systems ensures seamless processes. The use of e-procurement also makes it easier to adhere to compliance guidelines and increases the scalability of the purchasing process. In practical terms, this leads to cost savings, more efficient workflows and a stronger competitive position in the market.
Practical example: Introduction of e-procurement in the automotive industry
A leading car manufacturer implemented an e-procurement system to optimize the price inquiry process. Before digitalization, the purchasing department purchasing department needed an average of seven days to manually process price requests and obtain quotes from five suppliers. After the changeover, the processing time was reduced to two days and the number of suppliers requested was increased to twenty. This led to cost savings of 12% thanks to better purchasing conditions. In addition, errors in data processing were reduced by 85% and transparency in the process improved significantly. The real-time evaluation of offers made it possible to make strategic decisions more quickly and shorten the time-to-market for new products.
Conclusion on the price inquiry
Price inquiries are an indispensable tool in modern purchasing. They not only enable the systematic determination of market prices, but also form the basis for well-founded procurement decisions. The success of a price inquiry depends largely on precise specifications, careful supplier selection and professional time management. With increasing digitalization, price inquiries are developing into automated, data-driven processes that will further increase efficiency and transparency in the procurement process.
