In projects, the sequence of procurement activities are as follows’
- Identify sellers
- Request for Information (RFI) about the proposed solution or item
- Raise Request for Proposal (RFP) or Request for Quotation (RFQ) based on the nature of procurements. For complex items / solutions one raise RFP. For off the shelf items the preferred document is RFQ.
- Good request for proposals will have the evaluation criteria also, so that vendors can propose according to the evaluation criteria. Cost alone need not be the primary deciding factor. One may give importance for other aspects like quality, after sales support, cost of ownership, cost of maintenance, availability of spares, past history, certifications etc of the supplier organization.
- Once the proposals are received, they are evaluated against the evaluation criteria, and the top ones will be shortlisted.