Definition
A quote comparison is a side-by-side review of supplier quotations for the same requirement, used to choose who to buy from and record why.
What is a quote comparison used for?
The cheapest unit price isn’t always the best offer. Buyers compare price, currency, lead time, validity, payment terms and specification, then award each line to a supplier. Many companies require a minimum number of quotes above a spend level and a written reason when the lowest offer isn’t chosen, which gives auditors a clear trail.
Three offers for the same item
Example- Supplier A
- EUR 410 · 21 days
- Supplier B
- EUR 395 · 21 days
- Supplier C
- EUR 402 · 5 days
Awarded
Supplier C
Comparisons get harder when quotes arrive in different currencies. The awarded offers become purchase orders.