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Effective RFQ Management for Job Shops: Enhancing Quotation Process


The Challenges of RFQ Management  

Managing numerous RFQs can be time-consuming and complex for job shops. Each RFQ requires carefully reviewing technical specifications, production requirements, and quality expectations. It’s critical to correctly interpret the customer’s requirements to provide an accurate quote and proposal. However, customers don’t always provide enough detail, making it difficult to fully understand their needs. 

The bid qualification process itself can also be highly subjective. Customers may not have clear criteria for evaluating proposals, making it hard to know what will win the bid. Competition is often fierce, with multiple job shops vying for the same projects. Even if a shop can meet all the requirements, the customer may simply choose the lowest bidder.

With so many complex RFQs to manage and intense competition, it’s challenging for job shops to reach and maintain a high win rate. Too often, the effort spent bidding ties up resources without leading to new business.

Strategies to Improve RFQ Win Rate  

Winning business through RFQs and RFPs takes strategic planning and execution. One of the most critical factors is speed of response. According to a study by the Aberdeen Group, best-in-class companies respond to RFQs 36% faster than average. Buyers value receiving prompt, accurate quotes to keep their own projects on track.

Here are some additional key strategies job shops can use to improve their RFQ win rate:

Build relationships with buyers

  • Take time to understand the buyer’s business, challenges, and objectives. Ask questions and listen during any meetings or site visits.  
  • Maintain regular contact with key buyer personnel through emails, phone calls, and face-to-face meetings. Don’t just reach out when you want business.
  • Attend industry events and join organizations where you can network with potential buyers. Get to know them long before an RFQ is issued.
  • Provide helpful information and resources to buyers proactively that address their challenges. Position your company as a partner, not just a vendor.

Understand decision criteria and quality requirements 

  • Ask the buyer how they evaluate and award business. What are their most important criteria?
  • Pay attention to any vendor scorecards and KPIs they track. Make sure you can deliver on the metrics that matter most to them.
  • Research past RFQ winners and try to determine why they were selected to better understand the buyer’s preferences.
  • Clarify all quality expectations upfront, including required quality certifications (ISO, AS9100, IATF 16949, AWS, etc.), first article inspection and PPAP requirements, acceptable defect rates or parts per million (PPM) targets, any specific testing, inspection, or documentation needs.
  • Make sure you can fully meet all quality requirements before bidding. Failing to do so can lead to disqualification or costly issues if you win the business.
  • If any quality requirements are unclear, ask the buyer for more details. Don’t make assumptions that could jeopardize your ability to deliver.

Submit high quality bids

  • Read the RFQ carefully and provide responses that align with their exact requirements. Don’t just submit a generic proposal.
  • Put time and effort into presenting a professional, accurate, and compelling proposal. Enlist subject matter experts to assist.
  • Back up your capabilities with relevant credentials, case studies, testimonials, and quality certifications.  

Streamlining the Quotation Process

An effective quotation process is essential for job shops to improve win rates. 

Data management plays a crucial role

Having organized, accessible data on past projects, pricing, materials, and more enables faster, more accurate quoting. It’s also important to have this data centralized vs. siloed with individual team members.

Here are some additional ways to streamline the quotation process:  

  • Centralized system to track RFQs – Have a centralized database to log all incoming RFQs. This enables visibility across the organization into open RFQs and deadlines. Assign RFQs to specific teams to manage responses.
  • Standard response templates – Develop standard templates for RFQ responses rather than starting from scratch each time. Include sections for capabilities, experience, pricing, and other key areas. Tailor templates for different customers or industries. 
  • Quotation automation software – Look into dedicated quotation software to automate and streamline the entire quoting process. This can help centralize RFQs, use response templates, assign tasks, and track deadlines. It can cut response times significantly.

Increasing the number of people who can handle RFQs

Very often, quoting falls on a small group like executives and senior engineer/sales leaders. However, by cross-training other team members and documenting processes, job shops can respond to more RFQs without overburdening a few individuals. Capturing the knowledge of experienced staff and sharing it broadly builds the capacity to efficiently handle more bids.

Writing Compelling Proposals

When responding to an RFQ, it’s critical that your proposal stands out from the competition. Here are some tips for writing compelling proposals that win business:

  • Highlight relevant capabilities and experience – Don’t just include your general company overview. Carefully read the RFQ and highlight specific projects and qualifications that meet the client’s stated needs. Provide concrete examples that showcase your expertise in the client’s industry and required services.
  • Customize content for each RFQ – Avoid recycling the same proposal templates. Tailor the content, case studies, and info specifically for each opportunity. Demonstrate your understanding of the client’s unique requirements. 
  • Include robust supporting data – Back up your claims with stats, facts, and results from similar projects. Hard data builds credibility and shows you can deliver on your promises.
  • Communicate unique value – Explain why you are the best fit over competitors. Focus on your differentiators like proprietary methods, customer service, or innovative solutions. Quantify the tangible outcomes and ROI you can provide.

Following Up After Bidding

Following up after submitting a bid is a critical step that is often overlooked. However, doing so can significantly increase your chances of winning future business. Here are some tips for effective follow up:

Build rapport with buyers

  • Thank the buyer for considering your company’s bid. Express your appreciation for their time and interest. 
  • Work to build a relationship, so you become a trusted partner vs. just another vendor.

Request feedback on the bid  

  • Inquire about how your bid compared to the winning bidder. What made their proposal stand out? 
  • Ask what areas your bid was weaker in and how it could be improved for the future. Specific feedback is invaluable.

Discuss ways to improve future bids

  • Offer to provide references or case studies that showcase your experience with similar projects.
  • Suggest a site visit or product demo to give the buyer more insight into your capabilities.
  • Ask if there are any certifications or qualifications you could obtain that would make your bids more competitive.

Stay engaged for new opportunities

  • Periodically check in with the buyer to ask about any new projects coming down the pipeline. 
  • Make sure they keep you in mind by sending helpful articles, tips or other useful information.
  • See if you can get on their bidder’s list or otherwise stay informed about future RFQs.

Strategically decline some RFQs

While it may seem counterintuitive, it’s also important to decline responding to specific RFQs from customers where your historical win rate is very low. If a customer rarely awards you business and seems to just include you for competitive bidding, it may not be worth the time and effort to keep bidding. 

Executives and sales leaders should proactively discuss building more win-win relationships with these low-efficiency customers. See if the customer would be open to limiting bids to projects that best fit your capabilities. If not, consider reducing or eliminating bids. Focus your efforts on customers with a higher likelihood of awarding you business.

Leveraging AI-Powered Software to Streamline RFQ Processes

As job shops look to optimize their RFQ win rates and efficiency, AI-powered software solutions like CADDi Drawer can be a game-changer. This innovative platform helps streamline the entire quoting process by capitalizing on past drawings and quotations.

CADDi Drawer automatically scans and extracts data from PDF drawings, including dimensions, text, and shapes. It can even convert handwritten drawings into a searchable format. This means your entire library of drawings becomes instantly accessible and comparable.

The software also allows you to easily connect quotations, cost data, supplier information and more to each drawing by uploading CSV files. You can integrate CADDi Drawer with your ERP, CAM, CAD and other systems to have all relevant data at your fingertips.

With powerful search capabilities, your team can quickly find similar past drawings and associated data using keywords or even by shape. CADDi’s patented visual search technology can identify similar parts across decades worth of drawings.

Having instant access to past drawings and quotes empowers your sales team to respond faster to RFQs. They no longer have to start from scratch on cost estimates or rely on engineers to locate relevant past projects. CADDi Drawer helps quickly determine if a part can be made in-house or needs to be outsourced.

The platform also provides insights to optimize your quotation-to-order ratio. By comparing data on won and lost bids for similar parts, you can determine the optimal pricing strategies for each customer. 

Ultimately, AI-driven solutions like CADDi Drawer enable job shops to bid smarter and faster. Leveraging your existing intellectual property across drawings and quotes empowers your team to make more competitive bids in less time. In today’s fast-paced manufacturing world, that’s a critical advantage.

Ready to see CADDi Drawer in action? Get a personalized demo.

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