EDI 840: Request for Quotation
EDI 840 Definition
The EDI 840 Request for Quotation (RFQ) document is a fundamental tool in electronic data interchange (EDI) transactions, utilized by buyers to formally request pricing and delivery information from suppliers for goods or services. This document initiates the procurement process, allowing buyers to compare offers from multiple suppliers to secure the best terms for their needs.
What is EDI 840 Used for?
Buyers use the EDI 840 to communicate their needs to potential suppliers, specifying the goods or services they are interested in purchasing along with any particular requirements or conditions. Suppliers respond with an EDI 843 Response to Request for Quotation, providing the requested information. This exchange facilitates competitive bidding, helping buyers to make informed purchasing decisions.
Key Elements of EDI 840
An EDI 840 document typically includes key elements to convey the request for quotation clearly and effectively:
- Transaction Set Header and Trailer: Marks the beginning and end of the EDI 840 document, encapsulating the RFQ details.
- Requester Information: Details about the entity making the request, including company name, address, and contact information.
- Vendor Information: Information on the potential supplier(s) from whom the quotation is requested, if specified.
- Item Identification: Details about the products or services for which quotes are being requested, including descriptions, quantities, and any specific requirements.
- Terms and Conditions: Any terms under which the quotation is requested, including delivery requirements, payment terms, and other conditions.
Benefits of EDI 840
Utilizing the EDI 840 document offers several advantages:
- Efficiency: Streamlines the quotation request process, reducing the time and effort required to gather pricing information.
- Accuracy: Ensures that suppliers receive clear, detailed information about what is being requested, minimizing misunderstandings.
- Comparability: Allows buyers to easily compare offers from multiple suppliers, ensuring the best terms are secured.
- Cost Savings: Helps in obtaining competitive quotes, potentially leading to cost savings in procurement.
EDI 840 Document Example
Here’s a simplified example of what an EDI 840 might look like in raw data format:
ST*840*0001
BQR*00*RFQ12345*20241130*20241215
N1*BT*Buyer Company*1*92*12345
N1*VN*Vendor Company*2*92*67890
LIN*1**PN*Widget A*PD*Description of Widget A
QTY*21*1000
DTM*002*20241231
SE*7*0001
Guide to EDI 840 Terms and Elements:
- ST (Transaction Set Header): Initiates the EDI 840 document, identified by a unique control number.
- BQR (Beginning Segment for Request for Quotation): Indicates the start of the RFQ, including the RFQ number and relevant dates.
- N1 (Name): Identifies the requester (BT for Bill-To Party) and potential vendor (VN for Vendor), including identification numbers.
- LIN (Item Identification): Identifies the items for which quotes are being requested, including part numbers and descriptions.
- QTY (Quantity): Specifies the quantity of each item being requested.
- DTM (Date/Time Reference): Provides relevant dates, such as the required delivery date.
- SE (Transaction Set Trailer): Concludes the EDI 840 document, ensuring completeness and accuracy.
This example is designed to give a basic understanding of how an EDI 840 document might look, including the types of information it conveys. Remember, the actual implementation might vary based on specific business needs and partnerships.
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