Comparing the quotations – easy or not?
Once the tendering process has reached the point where the participating suppliers have submitted their proposals, it is time for the job that requires a lot of precision and contains a lot of work: the buyer must create a summary of all the quotes for comparison and analysis. All the line items from different suppliers should be compared side by side and at the same time, the buyer must ensure that the suppliers have quoted on the requested products or services.
Simple comparison on unit prices does not really help in comparing the total costs. Also the volumes need to be taken into account in the calculations. And before the final comparison, all the formulas need to be double-checked – important purchasing decisions need to be made based on real facts.
”Wouldn’t it be nice if all the quotes could be automatically compared in the requested order after the RFx closing time?”
eRFx enables collecting all the quotes as requested and all the line-items in the right order. When the eRFx tool is used for collecting the quotes, the comparison and summaries are automatic. There are ready-made analysis options available – no need to create the calculations manually.
In the price analysis tool there are a lot of features. Analysis enables comparing the coverage of the quote, which shows automatically whether the suppliers can be directly compared or have they placed inadequate quotes. The price deviation highlights the line-items, where there is a great difference in quotes. This enables spotting the pricing errors, such as using wrong currency or quoting on a wrong purchasing unit.
Analysis enables also various comparative perspectives. Comparison can be for example based on the total volume or focusing only on the line-items where most of the spend is allocated.
Quite often also other elements need to be taken into account, such as freight, cost of choosing a new supplier or simply discount percentages on the quoted prices. The analysis tool enables taking all the other elements into account, which ensures that the comparison is based on the total costs.
There are different analysis versions available for different needs: the simplest analysis can be used as a starting point and the more versatile versions offer a lot of data to support the decision-making.
Noventia’s team is happy to organize a demo on the analysis features. Save time and start today!