E-sourcing

Request for information (RFI), usually precedes a RFP.  Danfoss uses RFIs to collect non-competitive data to be able to qualify participants for a follow-up event (RFP and potentially also auction).

An RFI is often sent to a broad base of suppliers to help Danfoss develop strategies, build databases and where necessary secure a documented directive or clarification.

Request for proposal (RFP), provides Danfoss with detailed information on business needs. The core part of the RFPs is made through a bidding process and shows the price indication.

The proposals are used to evaluate the potential suppliers and plan for the next step in the supplier selection process. The RFP will ensure that the suppliers to Danfoss respond factually to the identified requirements.

E-auction is a competitive negotiation event of prices for products or services. Prior to an auction Danfoss will always conduct an RFP. Qualified suppliers compete online for a clearly defined business. We carefully evaluate suppliers before they are invited to join an auction to ensure that they are qualified for the business they are bidding for.

We use auctions whenever possible to secure the best offer for Danfoss. Auctions can include both price and non-price parameters to ensure the best total value for our business.

To ensure that all participating suppliers have acquired the knowledge and basic skills needed for participating in an auction, we offer the invited suppliers to join a training auction prior to the real auction.