Article 36 - Quotation Comparison

Article 36 - Quotation Comparison


Article 36: How do I compare quotations and select the best vendor?

How does quotation comparison work?

After vendors respond to your RFQ, SAP allows you to compare all quotations side-by-side using the collective number to pull related responses into a single comparison screen[3].

What is the comparison process?

Step 1: Collect All Quotations

  • Vendors submit responses via email, mail, or electronic means
  • Enter quotation details into SAP system
  • Reference the original RFQ number for each response
  • Maintain quotation data with accurate pricing and terms

Step 2: Access Comparison Screen

  • Use the collective number to group related quotations
  • System displays all responses in comparison format
  • View side-by-side pricing and terms
  • Analyze key differences between vendors

Step 3: Apply Minimum Value Analysis

  • Lowest bid becomes 100% baseline
  • Other bids shown as percentage variance from lowest price
  • Easy identification of cost differences
  • Quick comparison of relative pricing

What should I compare beyond price?

Factor

Why Important

How to Evaluate

Delivery Terms

Timeline impact

Compare promised delivery dates

Payment Terms

Cash flow effect

Evaluate payment schedules offered

Quality Standards

Product reliability

Review certifications and standards

Service Level

Ongoing support

Assess warranty and service offerings

Vendor Reputation

Risk assessment

Check references and past performance


How to make the final selection?

Quantitative Analysis:

  • Total cost comparison including freight, taxes, discounts
  • Delivery schedule alignment with your requirements
  • Volume discounts and pricing breaks
  • Currency and exchange rate considerations

Qualitative Assessment:

  • Vendor financial stability and business continuity
  • Technical capability to meet specifications
  • Geographic proximity for logistics efficiency
  • Relationship potential for future business

Documentation Requirements:

  • Record selection rationale for audit purposes
  • Document any exceptions to lowest price selection
  • Maintain comparison reports for future reference
  • Communicate decisions to all participating vendors



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