What are procurement forms and when to use them? The term procurement is the act of buying or purchasing something. In most of our businesses we procure both goods and services. The Buyer issues a Purchase Order to procure 500 widgets or if it is a service it might relate to a labor need. To procure is the act of buying or purchasing. This is where the term Buyer or Purchasing Agent evolved from.
In your position as a Buyer or Purchasing person you will use many types of procurement forms and they will vary from short simple three page documents right up to hundred page contract, tender or boilerplate type agreements. Knowing how and when to use these agreements will make your life easier. Here are some tips and basic definitions to many of the popular acronyms used in the purchasing occupation.
EOI - Is an Expression of Interest. The Buyer would use this to solicit vendors to determine both qualification and availability of a supplier for a specific project.
RFQ - Request for Quote or Quotation. This is used to solicit quotations from three or more vendors. The Buyer knows the need, product specification, quality expectation and is now looking for price and delivery. Also known as ITB - Invitation to Bid.
RFP - Request for Proposals. Often a Buyer has a scope of work or the deliverables and now they are looking for proposals from suppliers. Vendors with related work experience would recommend or propose a solution and with that tie in their expected costs. There is more grey in a RFP ask.
RFI - Request for Information. Pretty basic, you are vetting suppliers to determine whether they will qualify for an upcoming need. It is the act of gathering or sourcing information which can then be applied to a matrix to determine a list of potential candidates that will bid your job.
LOI - Letter of Intent. As a Buyer you provide the Supplier with a formal letter likely as a result from a recent tender. This letter informs the supplier of your intent. Often this letter will have some key facts listed and some conditions which will need to be met before it is formalized.
LOU - Letter of Understanding.
MOU - Memorandum of Understanding
These are most of the common standard procurement related forms. The RFQ, RFP, EOI, RFI are used at the beginning of the acquisition process. The LOI, LOU, MOU forms or letters are used to formalize the purchase.
Generating these often lengthy forms from scratch is full time work! RFQPro provides procurement professionals with an alternative. Let our edit friendly templates help you expedite the procurement process.
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With close to 30 years in the Procurement field, Mark has gained experience in all areas of purchasing and materials management. Let RFQPro help you with all your procurement needs. Visit today for your free package of forms.
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