Imagine if your RFQ process took 50% less time, eliminating stacks of paper, manila file folders, and clunky filing cabinets. Imagine that you’re able to handle the typically arduous and detailed processes of procurement automatically and with less staff. This isn’t a dream.
According to The Hackett Group, world-class procurement organizations successfully handle the RFQ process with smaller teams, boasting 29% fewer staff, 21% lower labor costs and 111% higher employee retention. One of the ways these procurement organizations are able to achieve such successful stats is by using RFQ software. Unfortunately, a shocking 72% of businesses were reported to still be using an obsolete, manual RFx process (Changepoint). This outdated practice leads to 8 out of 10 employees feeling overworked, burnt-out or emotional distress over long work hours and demanding schedules. Taxing work schedules leads to human error, longer timelines, and feelings of frustration from customers and suppliers alike.
Using RFQ Software to Become a World-class Procurement Organization
Online RFQ platforms can automate your business process, streamlining and simplifying your ability to tell suppliers what you want, what you expect, and aid your timeline for choosing a supplier. Instead of trying to recreate and manage the RFQ process manually and internally, RFQ software is already prepared and out there for your use.
RFQ software can reduce the time spent preparing for bids by 50%.
Before an RFQ is sent, the details for contract management need to be established. Within the 2017 Association of Proposal Management Professionals (APMP) Journal, it was reported that hundreds of companies experience a 50% reduction in time spent on each RFP when they use software. Instead of wasting time with paper record-keeping, RFQ software allows for secure digital storage, free from accidental loss, with the ability to archive and access older files. Online RFQ organization is easier to navigate, track, edit and it enables you to globalize your RFx process; with most contract management becoming automatic and transparent. RFQ software also gives you the ability to aggregate the amount of data amassed and manage compliance when working on a global scale.
Managing RFQs can take up to 80% of your time when performed manually.
The Harvard Business Review reported that companies spend 80% of their time in meetings, on the phone, and responding to emails, during global and cross-functional collaboration. RFQ software simplifies the process of business to supplier communication by making it easy for suppliers to upload quotes and provide comprehensive information through easy to create questionnaires. Once all information is gathered you can measure company products against each other and compare supplier quotes efficiently. After choosing the best bid RFQ software electronically sends out purchase orders, shortening the supplier’s wait time for a response and conclusively letting you award the contract faster. All supplier profiles, terms of payment, and transaction records are then securely stored in RFx software. The backlog of information makes it easier for you to negotiate, leverage criteria and avoid binding contracts when going into the bidding process with new and previously awarded suppliers.
RFQ software generates annual cost savings.
A smooth and straightforward RFQ process changes the bidding negotiations. Suppliers want to work with buyers that have fast and easy approval systems and will compete for your business, ultimately leading you to get better products, better services at better prices. Essentially the buyer-seller interaction is enhanced through your ability to produce automatic contract awards, provide suppliers electronic acceptance sign-offs and up-loadable addendums using an online RFQ process. Additionally, by automating the routine tasks in the procurement process you can hire fewer staff, lower your labor costs and significantly increase your ROI, getting you closer to world-class procurement.
If you’re ready to automate your RFQ process, request a demo of ProcurePort’s cloud-hosted e-procurement software today.