New RFQ Process in SAP S/4HANA

27.07.2023

Request for Quotation (RFQ) Process: How the New RFQ Process Works in S/4HANA

The recently introduced end-to-end RFQ process in SAP S/4HANA significantly simplifies the process flow for managing numerous quotations from different suppliers.

What Is an RFQ?

A request for quotation (RFQ) is an invitation sent to suppliers requesting them to submit a quotation indicating their price and terms and conditions. An RFQ therefore contains important detailed information about goods and services.

Handling RFQ Processes in SAP

Strategic and operational purchasing benefit greatly from standardized handling of the RFQ process in the ERP system. Existing item numbers can be integrated directly into the RFQ and important information such as delivery times, prices and lot sizes can be fed directly into the database.

Why Handle RFQ Processes in SAP S/4HANA?

Thanks to the recently introduced RFQ process in SAP S/4HANA, the entire process flow from creating a request for quotation and supplier quotation through to comparing and awarding quotations can now be visualized in Fiori apps. Given the ever-increasing number of potential suppliers coupled with increasingly volatile competition, a standardized end-to-end RFQ process can help you to obtain competitive quotations from relevant suppliers, check supplier capability, identify potential issues prior to signing a contract, and protect against inflated supplier prices.

RFQ Process Flow in SAP S/4HANA

End-to-End RFQ Process at a Glance: What Does the RFQ Process Look Like in SAP S/4HANA?

The first step in the RFQ process is to create a request for quotation in the system. This is done using the Fiori app "Manage RFQs", which allows two main types of RFQs to be created:

1) External procurement RFQ (RSI): This is used to send RFQ data to the SAP Ariba system.
2) Internal procurement RFQ: This is used when all RFQ data is managed and processed within SAP S/4HANA.

RFQ details such as the terms of delivery and payment, list of items, supplier information plus descriptions and notes can be specified here.

Once the RFQ has been successfully created and checked, the next step is to send it for approval. Since RFQs are automatically approved by default, the RFQ is automatically approved after it has been published. The supplier quotation is then created by selecting the relevant supplier and creating a new quotation under "Supplier". Once the supplier quotation has been submitted, it is located in the quotation area. The next step is to use the Fiori app "Compare Supplier Quotations" to compare the quotations in the system and award the best quotation. The Fiori app "Manage Supplier Quotations" can then be used to display all supplier quotations created on the basis of the RFQ as well as details about the status, award and quotations themselves. It is also possible to subsequently upload documents or notes and create a purchase order in reference to the quotation.

Where Is the New RFQ Process Available?

• S/4HANA 2022
• S/4HANA Cloud 2202
• S/4HANA Cloud 2208
• SAP Ariba Sourcing via SAP Ariba Cloud Integration Gateway (extension)

What Are the Benefits of Using the New RFQ Process in SAP S/4HANA?

• Sending RFQs to multiple suppliers
• Side-by-side price comparison
• Promoting competitive pricing
• Time savings thanks to a standardized, transparent evaluation of quotations from qualified bidders with qualified answers
• Analytics apps for simple monitoring of RFQs and comparison of supplier quotations (centralized)
• Compressed business process for all necessary activities in the core of SAP S/4HANA

Thanks to the above Fiori apps, these benefits are immediately evident in SAP S/4HANA. Therefore, it is not necessary for another system to handle the entire RFQ process flow in a standardized, transparent environment.

This process provides great potential for improvement in companies. Our experts at XEPTUM can help you to identify and capitalize on the potential for improvement in your company.

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