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SAP MM Quotation (RFQ) for Procurement Flowchart

SAP MM Quotation (RFQ) for Procurement Flowchart
SAP MM Quotation (RFQ) for Procurement Flowchart
This flowchart illustrates the Request for Quotation (RFQ) process, which is a key step in the procurement cycle within the SAP Materials Management (MM) module.

This flowchart illustrates the Request for Quotation (RFQ) process, which is a key step in the procurement cycle within the SAP Materials Management (MM) module. The process involves the following steps:

  • Need for Procurement:
    • The process begins when there is a requirement for materials or goods.
    • This need triggers the procurement process.
  • Request Quotations from Vendors:
    • The buyer initiates the RFQ process by requesting quotations from potential vendors.
    • The goal is to gather competitive quotes for the required materials.
  • Print RFQs:
    • The system generates and prints the Request for Quotation (RFQ) documents.
    • These documents contain details about the materials needed and are sent to the vendors.
  • Quotations from Vendors:
    • Vendors respond by submitting their quotations in response to the RFQ.
    • Each vendor provides pricing, delivery terms, and other relevant information.
  • Buyer’s Evaluation:
    • The buyer receives and evaluates the quotations.
    • Factors considered include price, quality, delivery time, and vendor reputation.
  • Compare Quotations:
    • The buyer compares the different quotations received.
    • The goal is to select the most suitable vendor based on the evaluation criteria.
  • Decision Point: Accept or Reject:
    • If a vendor’s quotation meets the requirements and is acceptable, the buyer proceeds to the next steps.
    • If a quotation is not suitable (e.g., too expensive or inadequate), it is rejected.
  • Accept Quote:
    • If the quotation is accepted, the buyer confirms the selection.
    • The chosen vendor’s quotation becomes the basis for further processing.
  • Maintain Source List:
    • The system updates the source list, ensuring that the chosen vendor is recognized for future procurement.
  • Create PO Quotation (Purchase Order):
    • Based on the accepted quotation, the system generates a Purchase Order (PO).
    • The PO specifies the materials, quantities, and terms agreed upon.
  • Procurement:
    • The materials are procured from the selected vendor.
    • The entire process ensures efficient and cost-effective material acquisition.

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