Efficient HVAC Invoice Example for Procurement

Hvac invoice example for Procurement

hello and welcome to BMG lounge calm in this video we are looking at some nifty terms used in the procurement management knowledge area RFI RFP RFQ IFB LOI and p.o if these sound Greek to you you can stick around and get to know more about them as always if you are interested into reading articles rather than watching videos first link in the description is going to take you to a relevant article on this topic over it over official website BMG lounge comm also second link is the most important link it is a playlist a YouTube playlist of every single video that we have done on procurement management knowledge area so two important links check them out let's get started so in addition to the procurement management plan something which we have already discussed in addition today this there are some other procurement documents also which are the outputs of the procurement management process and one of these are procurement a related documents and some of these documents that we just spoke of named them in the first slide some of these may not necessarily be output of this process but it would make total sense for you to study them since we are discussing all these terms in this video itself so stick around let's get started and understand all these terms our fi8 stands for request for information this is a document that the buyer issues to the seller so that the seller can showcase the capabilities that they have so the buyer seeks to understand the capabilities of the seller as part of issuing this document requests for information the information will be provided by the seller next comes RFP once again this is a document that is issued by the buyer and the buyer is requesting for a proposal here from the seller so this is where the buyer seeks to understand how seller will accomplish the job so this is where the seller already knows what they have to deliver how they are going to do it or what is the possible solution that they have to offer to the buyer that is exactly what proposal includes it can also include sellers company profile experience portfolio key resources and even the price so this is what a proposal comprises of both of these documents like I mentioned earlier are issued by the buyer to the seller next is RFQ request for code again this is a document that the buyer issues to the seller and this is where the buyer seeks the price per quote price quote per item our knitter or any other unit coach should ideally focus only on the price so request for code should ideally give a price value on per unit there is another term called is Q which is invitation for quote and it is actually more or less same as request for code again this is a document that the buyer basically issues to the seller so that the buyer can understand the price the seller is going to quote next is IFB in a petition for bid now how this is different from a code this is where buyer seeks price code or build from several sellers so this is something which the buyer may issue to several sellers and based on the bids received the buyer may decide upon which seller to award the contract so this is a difference between a bid and a court bidding is again an event and a program that is organized by the buyer where bidders can come in and the price may even fluctuate there so that is something which you can have deeper knowledge of not required from PMP point of view this definition of IFB and RFQ is good enough for you when it comes to the PMP exam a quick reminder for the free introductory session on project management known as PM 101 you can head over to PM salon.com slash PM 101 one and a half hour free session check it out next is LOI a letter of intent this is where the buyer expresses interest in hiring the seller note that it is only a letter of intent this is not a contract it is a good enough indication from the buyer so that the seller can start the preparatory work to fulfill the contract so if you receive an LOI from the buyer there are good chances that you are the one who has been selected by the buyer for the contract to be awarded and you can start the preparatory work to fulfill the contractual obligations next is purchase order or p.o this is where the buyer Awards the contract it is also known as purchase order to the seller again a document just like letter of intent which is issued by the buyer to the seller awarding a purchase order is basically awarding a contract we have already discussed contracts and its types the second link in the description which is a playlist contains a video on that as well so check that out very very important video finally question for this video can you arrange these documents in chronological order which document will be issued first by the buyer to the seller and what documents will come in later can you arrange them in chronological order looking forward to your answers let me know in the comments so that's all that we had in this video I hope it was worth your time and you found it helpful smash that like button it helps us stay motivated and create more free content for you subscribe to the channel and hit the bell I can to stay notified whenever we upload new videos and don't forget to check out the website BMC lounge calm your number one free PMP resource thank you and have a nice day