In today’s competitive landscape, cost-efficiency, speed, and transparency in procurement have become non-negotiable. Whether you're a manufacturer sourcing raw materials, a logistics company booking freight quotes, or a retailer evaluating packaging suppliers—Request for Quotation (RFQ) software can be a game-changer.
Manual RFQ processes are prone to delays, communication errors, and missed cost-saving opportunities. RFQ software addresses these pain points by streamlining the entire vendor quotation and comparison workflow.
However, modern ERP systems also offering built-in procurement functionalities so many businesses ask:
❓ “If our ERP can manage RFQs, do we still need separate RFQ software?”
This article explores that question, starting from the industries that benefit from RFQ tools to what ERPs offer and where standalone RFQ systems still add value.
Industries That Benefit Most from RFQ Software
RFQ software is crucial in industries with frequent supplier interactions, cost sensitivity, or complex sourcing needs. These tools simplify vendor communication, speed up response collection, and enable better pricing decisions.
|
Industry |
Use Case |
|
Construction |
Sourcing materials, subcontractor bids |
|
Manufacturing |
Procuring components, machinery, packaging |
|
Pharmaceuticals |
Sourcing lab equipment, chemicals |
|
Retail & E-commerce |
Comparing quotes for bulk orders, packaging, logistics |
|
Healthcare |
Procuring medical equipment and services |
|
Government |
Ensuring audit-compliant procurement via public RFQs |
|
Logistics & Freight |
Sourcing transport and warehousing vendors |
|
IT Services |
Evaluating tech vendors, SaaS tools, outsourced development |
Features
of an Ideal RFQ Software
Not all RFQ systems are created equal. A good RFQ tool must do more than just collect prices, it should improve vendor communication, automate workflows, and support compliance and reporting.
|
Category |
Key Features |
|
RFQ Management |
Ready-to-use templates, itemized product/service listings, customizable fields |
|
Supplier Communication |
Automated invitations, in-app messaging, supplier portals with login access |
|
Quote Comparison |
Side-by-side comparison of prices, terms, delivery times, and scores |
|
Workflow Automation |
Custom approval flows, reminder alerts, and conversion of quotes into POs |
|
Reporting |
Real-time dashboards for cost analysis, supplier response rate, and RFQ cycle time |
|
Integration |
Seamless sync with ERP, inventory, CRM, or accounting systems |
|
Localization |
Support for multi-language and multi-currency sourcing processes |
|
Security & Access |
Role-based permissions, secure document handling, and audit trail tracking |
What Modern ERPs Already Offer for RFQ?
Modern ERP platforms like SAP, Oracle, and Microsoft Dynamics have built-in procurement and RFQ capabilities. These allow teams to generate RFQs, send them to vendors, and track responses within the same system used for inventory, accounting, and operations.
|
ERP |
RFQ Capabilities |
|
SAP S/4HANA |
Centralized procurement with vendor quote tracking |
|
Oracle NetSuite |
RFQ generation, vendor records, quote-to-PO flow |
|
Odoo |
Purchase module with automated RFQ based on stock rules |
|
Microsoft Dynamics 365 |
Procurement workflows with RFQ approval chains |
|
Zoho One |
Procurement app suite with email-based RFQ flows |
Why Do Businesses Still Use Dedicated RFQ Software?
Despite ERP advancements, many businesses still choose to add standalone RFQ tools. Here’s why:
1. Enhanced Supplier Collaboration
ERPs may not provide a rich vendor experience—like real-time chats, feedback loops, or portal-based submissions. RFQ tools enable smoother communication and faster turnaround.
2. Robust Quote Evaluation
Dedicated platforms allow for advanced quote scoring, weighted criteria (e.g., 60% price, 40% delivery time), and side-by-side comparisons that many ERP modules lack.
3. Support for Auctions & Multi-Round Bidding
Reverse auctions and multiple bidding rounds are often missing in ERP procurement modules but are powerful cost-saving tools in standalone RFQ platforms.
4. Ease of Use & Flexibility
RFQ platforms are often more intuitive, easier to set up, and require less training than complex ERP procurement modules—especially useful for mid-size companies or distributed teams.
5. Integrates with Your ERP
Most RFQ tools today offer APIs or native integrations with popular ERPs, letting you push winning quotes directly into the ERP to generate POs and track spending.
Think of RFQ software as a layer of intelligence and flexibility on top of your ERP, especially if you’re doing strategic sourcing or high-volume vendor interactions.
When to Use ERP vs. Standalone RFQ Software?
Here’s a decision guide to help you assess your needs:
|
Business Scenario |
Suggested Tool |
|
Simple procurement with few vendors |
Use ERP’s built-in RFQ module |
|
Frequent multi-vendor comparisons |
Add an RFQ platform with scoring and quote analysis |
|
Complex sourcing with reverse auctions |
Use standalone RFQ software with ERP integration |
|
Need for compliance, audits, or supplier scorecards |
Prefer a dedicated RFQ solution with reporting features |
Popular RFQ Software Options
There are numerous RFQ solutions in the market, each catering to different business sizes, industries, and sourcing complexity. Here are some best RFQ tools:
|
Software |
Best For |
Approximate Cost |
|
SAP Ariba |
Large enterprises with global supply chains |
$495–$7,495/month + transaction fees |
|
Coupa |
Strategic procurement with advanced spend analytics |
$35–$100/user/month |
|
ProcurePort |
SMBs needing RFQs and e-auctions |
$225–$685/user/month |
|
Jaggaer |
Education, pharma, and public procurement |
From $3,000/month |
|
Vendorful |
Agile procurement teams and startups |
Free to $499/month |
|
Odoo Purchase |
Growing businesses seeking integrated ERP & RFQ |
₹750–₹2,500/user/month |
|
AuraVMS |
Lightweight RFQ needs (e.g., freight quotes) |
Starts at $5/month |
|
eSupplier.com |
Mid-sized logistics and manufacturing firms |
Around $100/month |
Conclusion
ERP systems have come a long way and now support many core procurement tasks. But for companies where vendor evaluation, quote comparison, and sourcing flexibility are critical, RFQ software is still highly relevant.
By combining the operational backbone of an ERP with the specialized capabilities of RFQ software, companies can:
- Achieve faster procurement cycles
- Improve cost savings through better vendor negotiations
- Maintain transparency and compliance
- Gain better control over strategic sourcing
👉 Want to discuss more, our team of Odoo Accountants and Bookkeeping experts can help you plan the right modules, workflows, and rollout strategy.
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