How to manage complex industrial requests for quotation

Indice

• What is an industrial RFQ?
• How do you manage an industrial RFQ?
• How do you analyse technical specifications and the relevant annexes?
• When is it necessary to seek clarification from the client?
• What must a technical quotation contain?
• How do you manage timelines, deadlines and revisions?
• What are the most common mistakes made when handling RFQs?
• What happens after the quotation has been submitted?
• How can SI Company support the management of industrial RFQs?

What is an industrial RFQ?

RFQ stands for Request for Quotation, i.e. request for a quotation. It is the document through which a client invites one or more suppliers to submit a proposal for a specific supply.

In the industrial sector, however, the request rarely concerns just a product and its price. It may relate to the construction of a plant, an energy contract or a project managed by an EPC contractor on behalf of an end client.

An industrial RFQ may therefore include technical specifications, quantities, applicable standards, drawings, delivery terms, documents to be submitted and requirements set by the end customer.

For this reason, receiving a request for quotation does not simply mean preparing a quotation. It means assessing whether the company is genuinely in a position to respond and to meet the commitments set out in the proposal.

How do you handle an industrial request for quotation?

The first step is to understand the context in which the request arises.

It is important to know:

• Which project it is linked to.
• Who is managing the procurement.
• What role the EPC contractor plays.
• Who will be the end customer for the supply.

This information enables you to better interpret the requirements received and to understand what level of detail will be required.

Next, the technical scope must be verified. The company must determine whether the requested product or service falls within its range, whether it can meet the specifications, whether it holds the necessary certifications, and whether it is able to meet the quantities and deadlines for delivery.

Only after this verification is it possible to involve the various internal departments and begin preparing the tender.

The process must follow a precise sequence:

• analysis of the documentation;
• technical verification;
• collection of clarifications;
• definition of the proposal;
• final review.

How do you analyse technical specifications and their annexes?

Technical specifications should not be read as a stand-alone document.

In industrial RFQs, information may be spread across general specifications, datasheets, drawings, bills of materials, commercial terms and end-customer documents.

A seemingly minor requirement may affect the configuration of the product, the price or the delivery times.

It is therefore necessary to check that all files are present and that you are working on the correct versions. Subsequently, each requirement must be compared with the features of the solution that the company intends to propose.

The aim is not merely to understand whether the product or the service can work in the required application. It is also necessary to establish whether it complies with the specified standards, what tests will need to be carried out, what documents will need to be delivered and which tasks will remain the responsibility of the supplier.

When the documentation is particularly complex, it can be useful to draw up an internal table that links each requirement to the corresponding response. This does not necessarily need to be sent to the client, but it allows you to check that no point is overlooked.

When is it necessary to seek clarification from the client?

A request for clarification becomes necessary when missing, ambiguous or contradictory information prevents the quotation from being drawn up correctly.

It may happen, for example, that a drawing shows a configuration different from that specified in the specification, that it is unclear which standard to apply, or that details regarding tests or final documentation are missing.

In such cases, it is not advisable to make an assumption on your own and base the quotation on that. An unconfirmed assumption may result in a price that cannot be compared with that of other suppliers or lead to problems if an order is placed.

The clarification must be specific. It is not enough simply to state that a point is unclear: you must specify the document, the relevant requirement and the information required to proceed.

The timing is also important. Waiting until the last few days before the deadline reduces the time available to receive a response, update the proposal and obtain the necessary internal approvals.

What must a technical proposal contain?

A technical proposal must enable the client to understand exactly what is being proposed and to what extent the solution meets the request received.

First and foremost, it should include the references for the RFQ, the project and the relevant revision. It is then necessary to describe the scope of the supply and compliance with the technical requirements.

The documents, certifications, tests and any services included must also be specified. If certain activities are not covered by the proposal, it is preferable to state this clearly.

Particular attention must be paid to differences from the specifications. Where a requirement cannot be met in full, the deviation must be stated and explained. The same applies to any alternative solutions, which may be proposed as an option without implicitly replacing what was requested.

The technical proposal and the commercial proposal must also be consistent. Quantities, configurations, accessories and timelines must not vary from one document to another.

How are timelines, deadlines and revisions managed?

A complex industrial RFQ often involves several people and cannot be managed by concentrating all activities in the final few days.

The deadline communicated by the client must be translated into an internal schedule. It is necessary to define by when the technical analysis must be completed, requests for clarification must be submitted, costs must be received, production times must be verified and the final version must be approved.

A contact person must also be identified to monitor the progress of the quotation and ensure that the various company departments remain aligned.

This task becomes even more important when the manufacturer is based abroad and the enquiry comes from an Italian or European client. Language differences, time zones and internal procedures can slow down the exchange of information.

During the process, new documents or revisions to the RFQ may also be received. Every update must be recorded and communicated to the people involved, to prevent the technical department from working on one version whilst the sales department works on another.

What are the most common mistakes in managing requests for quotation?

One of the main mistakes is starting to calculate the price straight away without having fully understood the project.

This approach can lead to underestimating tests, certifications, documentation or activities that affect the actual cost of the supply.

Other common mistakes include:

• failing to check the revision of the documents;
• failing to clarify ambiguous requirements;
• setting delivery times that are not confirmed by production;
• leaving exclusions and deviations implied;
• presenting different data in the technical and commercial proposals;
• sending incomplete or unrequested attachments;
• failing to check the procedures set out for submission;
• stopping follow-up after the proposal has been sent.

In many cases, the problem is not the quality of the product or service, but the client’s difficulty in understanding and comparing the proposal received. An unclear proposal can penalise even a technically qualified supplier.

What happens after the proposal is submitted?

Submission does not mark the end of the process.

The client may request clarifications, technical details, financial updates or a review of delivery times. They may also ask for certain aspects of the proposal to be amended to bring it into line with changes to the project.

At this stage, it is important to keep a record of all communications and to ensure that each new version of the quotation incorporates the agreed changes. A technical amendment may affect the price, whilst a commercial request may have implications for delivery times or payment terms.

Negotiation therefore requires constant dialogue between the client and the supplier. The aim is not to accept every request simply to secure the order, but to arrive at terms that are sustainable and consistent with the company’s actual capacity.

When the order is placed, it must be checked against the latest approved quotation. Products, quantities, accepted deviations, delivery terms, commercial conditions and payments must correspond to what was agreed.

How can SI Company support your company’s management of industrial RFQs?

For a foreign company, receiving a request for quotation from an Italian or European customer can be complex, even when it has a technically sound product. It is not always easy to understand the context of the project, interpret the customer’s expectations or coordinate communications between the sales department, the technical department and the buyer.

SI Company acts as local technical and sales support in the electromechanical and energy sectors. It reviews clients’ ongoing projects, tracks opportunities that align with the supplier’s objectives and capabilities, and supports the management of quotation requests received.

Its role may include gathering information on the project, coordinating clarifications, supporting communication with buyers and technical contacts, and assisting during negotiations.

SI Company does not replace the manufacturer’s technical department and does not independently draw up the solution to be offered. However, it helps the company to better understand the request, maintain contact with the client and manage the various stages between receiving the RFQ and the potential award of the order in a more organised manner.

Have you received a request for a quotation from an Italian or European client?

Contact the SI Company team to assess the project and understand how to manage the various stages of the negotiation process.