Buying better
Comparing supplier quotations: look beyond the unit price
Two quotations can look similar while describing different offers. Compare scope, quantities, lead times and exclusions before choosing your next step.
The lowest number in a quotation is not always the simplest offer to evaluate. One supplier may quote the requested quantity, another may use a minimum order, and a third may exclude a service or delivery item included elsewhere.
A useful comparison starts by checking that the quotations address the same requirement. Qotiva can help keep supplier responses connected to an enquiry, but the buyer still needs to resolve differences in scope and commercial assumptions.
Confirm what each supplier is offering
Begin with the item description, part reference and condition. Check whether the supplier is quoting the exact requested product, an alternative or only part of the requirement. If an offer depends on later technical approval, keep that dependency visible.
For multi-item enquiries, review the coverage line by line. A supplier who can provide some items may still be useful, but a partial offer should not appear complete simply because it includes an attractive total. Record which items are missing or still awaiting confirmation.
Align the quantity basis and currency
Check whether a price is per item, pack, length, weight or another unit. Confirm the number of units covered by the offer and whether minimum quantities apply. A unit-price comparison is only meaningful when you understand the unit and quantity basis.
Keep currencies explicit. Do not add amounts in different currencies together or present them as directly interchangeable. If your organization converts currencies for an internal comparison, record the conversion method and date rather than silently replacing the supplier's quoted currency.
Understand timing and delivery assumptions
Read the lead time alongside its starting condition. Availability today, production lead time after an order, and dispatch after drawing approval are different commitments. Ask for clarification when the start point or the delivery expectation is unclear.
Compare freight and delivery assumptions as well. A quotation may exclude transport, specify collection, or cover delivery only to a particular point. Note these differences so that an omitted service does not look like a price saving.
Read the commercial conditions
Payment terms, quote validity, exclusions and other conditions can affect whether an offer fits your requirements. List unanswered questions rather than treating an empty field as agreement. A supplier's silence does not confirm a term you have not discussed.
Where a response is revised, keep the earlier version and identify which changes the supplier made. Confirm that the comparison uses the current offer, not a price copied from an earlier message with different conditions.
Make the next question specific
Instead of asking a supplier to improve the quote without context, ask about the exact difference that matters: the quantity basis, delivery assumption, alternative product or missing item. A specific question is easier to answer and leaves a clearer record.
A shortlist is a way to focus your review. It is not a substitute for due diligence or an agreement to purchase. Resolve the remaining questions and follow your organization's approval process before committing to an order.
Read the RFQ preparation checklist if the differences between offers suggest that the original request needs a clearer scope.