RFQ comparison sheet: what to compare besides the lowest price

Quotes differ in more than price. One supplier quotes ex-works and leaves freight to you, another delivers to your gate, and a third sets a minimum order that forces three months of stock on you.

The approver must defend the pick to a finance head or an auditor, sometimes a year after the purchase order closed. A bare list of prices cannot do that. A comparison sheet can.

Make the cost visible early. Ask each supplier to quote on the same delivery term, such as delivered to your gate, so the base is common before you compare anything.

Start with item, specification and quantity, written once and sent word for word to every supplier on the same day. If the specification varies, you are comparing different goods. Add the quote number, quote date and validity date so that an expired offer is never picked by mistake, and record who at the supplier sent it.

Then add the cost lines. Fold them into one landed cost per unit at your receiving point, so that an ex-works quote and a delivered quote can be read on the same footing.

Payment terms move cash. A supplier offering sixty days of credit may cost less in practice than a cheaper one demanding advance payment, because your cash stays in the bank for that period. Record the credit days, the trigger date, such as invoice date or goods receipt date, and any early payment discount.

Tolerance on quantity matters for bulk goods. A supplier who delivers within five units of the order is easier to plan around than one who may over-ship by a pallet. Note the rejection policy and the warranty too.

Lead time is the promise. Delivery record is the proof. Pull the last five purchase orders for each known supplier and note the promised date, the received date and the quantity short. A supplier who promises nine days and delivers in fourteen is a fourteen day supplier, whatever the quote says, and the sheet should price that delay into the comparison.

New suppliers have no record. Ask for two references or place a small trial order, and mark the cell as unproven rather than leaving it blank so the approver sees the gap.

Weigh the record honestly. A low price with a poor record is a gamble, because a missed delivery stops a production line or empties a shelf.

Leave a line at the bottom for the chosen supplier, the approver’s name and a short reason in plain words, written so that a stranger could follow it. Where the cheapest quote lost, say why. Lead time and delivery record are the usual reasons.

Attach the sheet to the purchase order. Next quarter, reuse the sheet for the repeat purchase and update only the columns that changed, so the second round takes minutes rather than an afternoon. Build version one this week. Use your next open RFQ as the test.