Why Email Is Still the Default RFQ Channel

Why Email Is Still the Default RFQ Channel

In today’s fast-paced business environment, procurement teams are continuously under pressure to drive efficiencies while also reducing costs. As technology evolves and new platforms emerge, many leaders wonder whether traditional methods are still effective. One common question that arises is: why is email still the go-to channel for Request for Quotation (RFQ) processes? The answer lies in its reliability, simplicity, and proven track record in addressing the unique challenges of procurement.

Familiarity Builds Confidence

At its core, email is a familiar tool for nearly every business professional. While new software solutions promise streamlined processes and enhanced tracking capabilities, the comfort and confidence of email cannot be overstated. Most procurement and operations leaders have used email extensively throughout their careers, which allows teams to communicate efficiently without the learning curve associated with new tools. For instance, a global manufacturing firm reported that despite experimenting with RFQ software, they eventually returned to email for their supplier communications. Why? They found that their suppliers responded more quickly and effectively via email, where teams could manage multiple requests, attach product specifications, and communicate back-and-forth in real time without navigating cumbersome interfaces.

Efficiency Through Simplicity

In many cases, the simplest solutions are the most effective. Email allows for straightforward communication with suppliers and clear documentation of interactions that can be referenced easily. Procurement leaders often have to juggle multiple RFQ requests concurrently, and using a platform that feels less direct can complicate matters. For example, consider how a midsize technology company employs email to manage RFQ processes. They send out an RFQ to a diverse group of suppliers through a well-structured template. This approach ensures both consistency and professionalism, with suppliers responding with their quotes, clarifications, and additional questions on the same thread. The ability to track every piece of information in one thread streamlines the communication and reduces administrative overhead. Moreover, keep in mind that RFQ processes are not only about cost but also about fostering relationships with suppliers. Email communicates a personal touch, allowing procurement officers to engage with vendors directly and build rapport over time.

Integration Capabilities

Another compelling reason email continues to be the default RFQ channel is its adaptability to existing systems and workflows. Businesses often utilize various tools for project management, contract management, and communication; however, email integrates seamlessly with nearly all of them. For example, an energy company adopted a cloud solution for project management but found that documentation and correspondence were overwhelmingly fragmented across multiple platforms. They optimized their processes by integrating their email communication into the cloud platform, ensuring efficient tracking, while still relying on email to handle urgent RFQs. This balance allows procurement leaders to maintain the control and tracking they value while leveraging the convenience of modern tools.

Cost-Effectiveness

Cost is always a crucial consideration for procurement and operations leaders, and email excels in this area. Implementing new RFQ management software can lead to significant expenses, from licensing fees to training costs. A recent analysis by a procurement consultancy revealed that companies often underestimate the total cost of ownership associated with introducing new technologies. In one case, an international logistics firm opted for a new RFQ solution, only to find that the annual expenses exceeded their original budget by nearly 40% within the first year. Instead of switching to new software for RFQ processes, they pivoted back to email, which allowed them to funnel those savings into other critical areas of their operations.

Staying Ahead with Vendor Preferences

Another factor that bolsters email’s position as the default RFQ channel is that many suppliers still prefer it. When operating in diverse markets, providers may not have access to advanced RFQ platforms. Many suppliers, particularly small to medium-sized enterprises (SMEs), often feel overwhelmed by new technology and prefer established methods of communication. For instance, a clothing retailer focused on sustainability sourced its materials from various small suppliers. They found that transitioning to a digital RFQ platform created barriers to entry for these vendors, limiting the retailer's ability to source new materials effectively. After receiving feedback from suppliers, they reestablished email as their primary communication method for RFQs, enabling broader participation and creative solutions from potential partners.

Bridging the Old with the New

As procurement and operations leaders navigate a landscape of evolving technologies, it is essential to strike a balance between innovation and durability. While tools and platforms that enhance supplier relationship management and data analytics are becoming indispensable, email continues to play a vital role. By using email as a foundation while incorporating new technology where appropriate, organizations can achieve stronger relationships with suppliers. For instance, opting to use email in tandem with a cloud storage solution allows teams to maintain an organized digital archive while ensuring that they still benefit from the immediacy and familiarity that email offers.

The Path Toward Measurable Outcomes

The continued reliance on email for RFQs may seem old-fashioned, yet the truth is that it delivers measurable business outcomes when used thoughtfully. By improving supplier engagement, tightening communication loops, and reducing costs, email becomes not just another tool but a cornerstone of procurement strategy. As leaders in procurement, supply chain, and operations, it is critical to recognize the strengths of email while remaining open to integrating new technologies that align with your goals. The return on investment from using email for RFQs translates to better supplier relationships, enhanced responsiveness, and ultimately more competitive pricing—all of which can significantly impact your bottom line. Moving forward, consider using email to build your RFQ process while test-driving new solutions on the side. With a pragmatic and adaptable approach, you might find that traditional methods still hold their ground against the latest innovations. Embracing this balance could keep your procurement process both efficient and effective, enabling your business to navigate the complexities of modern supply chains with confidence.