Unlocking Savings, Efficiency, and Compliance in RfQ Management Using Procurement Software

May 7, 2022 | Procurement tools and solutions

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May 7, 20222 min read

Implementing procurement software for RFQ management can significantly improve efficiency, reduce cost of goods sold, and improve supplier compliance. Improve your RFQ process with procurement software for better supplier relationships and data-driven decision making.

Procurement software can provide significant benefits for managing Request for Quotation (RFQ) processes. According to a study by the Aberdeen Group, companies using procurement software for RFQ management saw a 45% reduction in the cost of goods sold and a 30% increase in supplier compliance

(Client request to keep the names confidential)

One example of a company that has successfully implemented procurement software for RFQ management is Sunrise Corporation. Prior to using the software, Sunrise struggled with manual, paper-based RFQ processes which were time-consuming and error-prone. After implementing the software, Sunrise reported a 50% increase in efficiency and a 25% reduction in supplier non-compliance. Additionally, the company experienced a 15% reduction in the cost of goods sold. 

Another example is Epsilon Inc, which implemented procurement software for RFQ management and saw a 40% increase in supplier response rates, a 35% reduction in RFQ cycle time, and a 20% reduction in the cost of goods sold. 

In both of these cases, the implementation of procurement software for RFQ management led to cost savings, increased efficiency, and improved supplier compliance. These benefits can be attributed to the automation of manual processes, the ability to easily track and manage RFQs, and the ability to quickly analyze and make data-driven decisions. With FactWise, procurement teams can create best-in-class RFQs in less than a minute, communicate with multiple vendors at the same time via chat and other in-built features, thereby eradicating the need for dependence on emails and phone calls. Real-time, dynamic, robust analytics are available for supplier performance and RFQ management, so teams are free from the need to conduct tedious Excel-based analyses and manually update spreadsheets. 

Procurement software can also help to improve supplier relationships by providing an efficient and streamlined communication channel for RFQs and other procurement-related activities. This can lead to increased supplier loyalty and better negotiation power. 

In conclusion, procurement software for RFQ management can provide a wide range of benefits for companies, including cost savings, increased efficiency, improved supplier compliance and better supplier relationships. Companies like Sunrise Corporation and Epsilon Inc have already experienced these benefits and have reported significant improvements in their RFQ processes. If you're looking to improve your RFQ management process, consider implementing a procurement software solution.  

About the Author

Stawan is the founder and CEO of FactWise. Before founding FactWise, Stawan was the NA TMT-Procurement Leader at McKinsey. Passionate about procurement, Stawan has 15 years’ experience in enabling clients of all sizes to achieve business impact via procurement.


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