Question

Define what is proposal and describe the purpose of a proposal

Answer 1

A proposal in business is a written document or offer from the seller of product or service to the prospective buyer. The proposals are an integral part of the sales and sourcing process of a business. A seller firm makes an offer with the requisite information to the buyer firm and hence seeks a business deal between the two.

The purpose of the proposal is as under:

1. A proposal (or Request for proposal) is used by buyer firms to call for different offers from prospective sellers in the market. This helps the buyer firm to have multiple solutions for a given problem.

2. The proposal helps the buyer ease the complex sales process of corporate procurement

3. The proposal document shows all the information pertaining to the product, delivery, prices and other terms of the sourcing. It is a complete sourcing document which helps the buyer firm in assessing the seller firm's offer.