Inquiry and Quotation Processing 

Purpose

The aim of inquiry and quotation processing is to quickly hand over a binding quotation that is attractive for the customer and justifiable from a business point of view. An initial specification of the product is created in line with the customer’s requirements in the process.

On receipt, the inquiry is checked for completeness, and any queries are raised to the customer. The inquiry is then checked for its commercial and technical feasibility, and the importance of the customer for the company is evaluated. Taking order probability into consideration and on the basis of the information gained from the checks and evaluations, the company decides whether to create a quotation.

The next step is to process a technical solution. If required, the product can be configured with the help of existing variants and/or projects that have already been implemented. The technical solution is used in costing any manufacturer costs that might arise. Production and replenishment times are used to determine the delivery date. The quotation is completed by fixing the quotation price, which is determined on the basis of the price the company expects the customer will accept, or on estimated competitor prices. Legal terms and conditions are also part of the completed quotation. On completion of the quotation phase the quotation itself is created and sent to the customer. Quotation processing ends with either order placement or rejection of the quotation by the customer.

The scenario used here begins with a planning quotation. The quoted technical solution is based on estimated activity and function values, approximate measurements and weights, drawings, and brief descriptions of the main assemblies. The commercial contractual agreements indicate approximate delivery dates and general delivery terms. The quotation is created using a suggested retail price for the overall object, as well as assembly costs, and any services that might arise.

Process Flow

  1. The process begins when you receive an inquiry for a turbine. Customer documents specifying the customer’s requirements in more detail may accompany this inquiry. You manage all of these documents together.
  2. You expect costs to arise prior to quotation creation because of the complexity of the product and the special customer requirements. Therefore, you create an inquiry project, so that you can account assign the costs for inquiry processing.
  3. You perform initial planning of dates and costs on project basis.
  4. On the basis of the planned costs, you determine the sales price and transfer it to the quotation. Finally, you print the quotation and send it to the customer.

The flow of inquiry and quotation processing as explained in this example is shown in the following graphic:

Result

On completion of inquiry and quotation processing, the customer receives a quotation that may have been revised several times over. In reality, the quotation process (quotation – rejection – recosting – new quotation) is repeated several times over until both the customer and the tenderer reach a satisfactory compromise. This cyclical process is not illustrated in this example for reasons of simplicity.