Supplier quotations are hard to compare
Compare price, lead time, quality, payment terms and reliability consistently.
01 · What is usually happening?
Three suppliers quote in three formats. One includes freight, one does not, one quotes per kilogram and another per piece, and the payment terms differ.
The cheapest number turns out to be the most expensive supplier once everything is added up.
The question people usually ask“Which supplier is cheapest?”
The more useful question“Which is best once price, freight, terms, quality and reliability are counted?”
02 · Common causes
- 01Quotes arrive in different formats and units
- 02Freight, tax and terms are not brought to the same basis
- 03Past delivery and quality record is not part of the comparison
- 04Comparison is done in someone's head
- 05Only the first two quotes are properly compared
- 06The decision is not recorded, so it is made again next time
03 · What to check now0 of 6 checked
04 · What good looks like
- 01Every quote is entered on one sheet with the same columns.
- 02Landed cost is compared, not the headline rate.
- 03Delivery and quality history sit beside the price.
- 04The reason for the choice is written down.
- 05Repeat items are re-quoted on a schedule.
05 · Where this connects
This rarely stays in one department
What it can lead to: The business pays more than it needed to and cannot say why.
Start from a problem
Work flows left to right, top to bottomKEYMost important for manufacturing
These support every part of the business
Problem
Supplier quotations are hard to compare
Usually connected to
How it spreads
- Purchasing & Suppliers
What it can lead to: The business pays more than it needed to and cannot say why.
lamplamp could read supplier quotes from WhatsApp and email into one sheet.
06 · Related processesPurchase requirement to material received
08 · lamp
lamp could keep this moving
lamp is not available yet. These are things it is being built to do.
- lamp could read supplier quotes from WhatsApp and email into one sheet.
- lamp could work out landed cost for each.
- lamp could add each supplier's delivery and rejection record.
- lamp could show the recommendation with the reason.
Does your business handle this differently?Tell us what we have missed: a cause, a check, or a better way of handling it.
Suggest an addition