Request for Quotation

What is the Purpose of The EDI 840 - Request for Quotation?

The EDI 840 facilitates communication between buyers and sellers by enabling requests for pricing information, delivery timelines, and other essential details about products and services.

What are the important elements of The EDI 840 - Request for Quotation?

The EDI 840 (Request for Quotation) is a standardized electronic document used to request pricing and availability information for products or services. Here are the key elements: 1. Header Information: - RFQ Number - RFQ Date/Time - Transaction Type Code - Quote Due Date - Currency Code - Response Type Required - Solicitation Type 2. Trading Partner Information: - Buyer Information (name, ID, address) - Supplier Information - Ship-to Location - Bill-to Location - Additional Trading Partner IDs 3. Item Details: - Line Item Numbers - Product/Service Identifiers - Item Descriptions - Quantities Requested - Unit of Measure - Delivery Requirements - Technical Specifications - Quality Requirements 4. Request Requirements: - Price Request Type - Quantity Breaks - Alternative Items - Substitution Options - Required Response Data - Bid Bond Requirements - Sample Requirements 5. Delivery Information: - Required Delivery Date - Shipping Method - Delivery Location - Transportation Terms - Special Handling Requirements - FOB Terms - Shipping Instructions 6. Terms and Conditions: - Payment Terms - Warranty Requirements - Service Level Requirements - Contract Terms - Performance Requirements - Compliance Requirements 7. Reference Numbers: - Project Numbers - Contract Numbers - Drawing Numbers - Specification References - Bidding References - Customer References 8. Additional Elements: - Special Instructions - Testing Requirements - Certification Requirements - Insurance Requirements - Quality Standards - Documentation Requirements 9. Control Segments: - Transaction Set Control Numbers - Segment Counts - Line Item Counts - Control Totals The EDI 840 is essential for initiating the procurement process and obtaining standardized quotes from multiple suppliers.

What are the potential issues with The EDI 840 - Request for Quotation?

Here are the potential issues that can occur with EDI 840 (Request for Quotation) transmissions: 1. Request Information Problems: - Missing RFQ numbers - Invalid request types - Wrong quote due dates - Incorrect solicitation types - Missing response requirements - Wrong priority codes - Invalid currency codes 2. Product Specification Issues: - Incorrect item descriptions - Missing technical specifications - Wrong quantity requirements - Invalid quality standards - Incorrect engineering drawings - Missing material requirements - Wrong dimensional data 3. Pricing Requirements Problems: - Invalid price break points - Wrong quantity break levels - Missing alternative pricing - Incorrect price type requests - Invalid cost breakdown requirements - Wrong pricing scenario requests - Missing pricing option requirements 4. Delivery Information Issues: - Invalid delivery dates - Wrong shipping requirements - Missing transportation terms - Incorrect FOB terms - Wrong delivery locations - Invalid shipping methods - Missing routing requirements 5. Terms and Conditions Problems: - Missing payment terms - Invalid warranty requirements - Wrong service level requirements - Incorrect contract terms - Missing compliance requirements - Wrong performance standards - Invalid insurance requirements 6. Reference Number Issues: - Missing project numbers - Invalid contract references - Wrong drawing numbers - Incorrect specification references - Missing authorization numbers - Wrong bidding references - Invalid customer references 7. Format and Structure Issues: - Missing mandatory segments - Invalid segment sequence - Wrong element usage - Incorrect qualifiers - Version/release mismatches - Character set problems - Wrong hierarchical structure 8. System Integration Challenges: - ERP system incompatibilities - Translation errors - Interface failures - Database synchronization - Data transformation errors - Mapping discrepancies - Version control problems 9. Business Rule Violations: - Invalid quote parameters - Wrong approval requirements - Missing certification requirements - Incorrect submission rules - Wrong evaluation criteria - Invalid bid bond requirements - Missing compliance standards These issues can impact the RFQ process and supplier response quality, requiring careful validation and error handling procedures.