About Quotation (definition, function, and the type of Quotation) in manufacturing industry

post scm 0005 Quotation is a term often used in manufacturing. Usually, it will be widely used by people purchasing and sales people. Therefore, it is a mandatory requirement, the obligatory ' ain for those manufacturers to understand the term quotation in the global order. Because if up doesn't know, can-can be beaten by a boss later, hehe. For that reason, this article will discuss on quotation (definition, function, and the type of quotation) in manufacturing.

Definition Of Quotation

Own quotation comes from the United Kingdom. This means that the search itself was Yes in English-United Kingdom. In principle, the quotation is the contract price agreement between buyer and seller. Its functions could be well-thumbed according the position of the company. So, when we refer to a quote, then in it there will be the kind of stuff that will be traded along with the price. Well, the prices here are becoming important points in a quotation. Because of the price stated in the quotation is essentially the price that applies to the transaction will be done. But don't just get there. Usually a quote in addition to showing the price, will also include payment method (term of payment) to be done. Term of payment itself can be manifold, can cash on delivery (payment is made simultaneously with the goods come directly or paid time), cash before delivery (payment is made before the goods are delivered), TOP 15, 30, 60 days (even payments are made when due, depending on how many days maturity), and much more. In addition to the prices and terms of payment, quotation can also include the period of introduction of the quotation. Why should there be? So obviously, until when the buyer can take account of their spending with that price until the specified period. Also so that sellers are protected, if at any time should raise prices due to various factors, such as rising raw materials, shipping becomes more difficult, and so on. In addition to price, terms of payment, and the period of validity period, quotation can also include a minimum order. Minimum order is urgently needed, in order that the needs of the seller can be fulfilled. In addition, the minimum order will be usually implies the fall in unit price, which of course benefit the buyer.

The Function Of Quotation

As is clear from the definition of the quotation above, the function of the quotation was not very far from there. Quotation in the manufacturing industry serves to protect the agreement between both parties, so that the purchase contract becomes more obvious and can be used as a guide to keep the cashflow.

The Type Of Quotation

According to their respective role in the transaction, the type of quotation is divided into two types: Vendor's and Quote Customer's Quote.

Vendor's Quotation

Vendor's quotation means the list price of the deal (the contract) is there for our manufacturing company against the vendor. So, when we buy things, we got was Vendor's Quotation.

Customer's Quotation

Customer's Quotation means the list price of the deal (the contract) is there for our manufacturing company against the customer. So, when we sell, we spend is a customer's quotation. That's the last little thing about the quotation, may be useful. If anyone is still confused, can be asked in the comment box. 🙂

Facebook Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.