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Analyzing Bids to Find the Best Supplier For an RFQ

To determine the winning supplier for an RFQ, you can analyze the supplier’s bids based on the total cost of each bid, or based on the supplier with the most “number 1” rankings.

Best Total Cost

With the total cost analysis, the total cost of each supplier’s bid is calculated by multiplying the required quantity by the supplier’s price to determine the total resource cost. Discounts, loaded taxes, and loaded extra charges are all included when calculating the total resource cost. The cost of the all of the resources is summed to give the supplier’s total bid cost. The suppliers are ranked from first (lowest bid) to last (highest bid) based on the total cost of their bid. For example:
Supplier
Rank
Total Cost of Bid
C
1
$10,000.00
B
2
$11,000.00
A
3
$12,000.00
D
4
$13,000.00
If a supplier has declined to bid on one or more individual resources, a total cost analysis will not be relevant for that supplier.

Most Number 1 Rankings

With the most “number 1” rankings method, the system analyzes each resource and determines the highest ranked supplier for the resource. This can be the supplier with the lowest cost or with the shortest lead time (depending on the ranking method selected for each resource). Then, suppliers are ranked based on the number of resources for which they are the leading supplier, as shown in the following table.
Supplier
Rank
Number of Resources Selected as Leading
Supplier
Total Cost of Bid
B
1
90
$11,000.00
C
2
80
$10,000.00
A
3
20
$12,000.00
D
4
10
$13,000.00
As you can see, supplier C is ranked second, despite having the lowest total bid cost.
This topic explains how to analyze a bid to find a winning supplier for an RFQ. To analyze the bids for each resource on an RFQ, see Analyzing Bids to Find the Best Supplier For Each Resource.

To Analyze Bids on an RFQ

1.
Open the RFQ.
2.
Make sure that editing is enabled.
3.
Select the Analysis view and then the Supplier Ranking tab. This tab displays a list of the suppliers that bid on the RFQ in the top table. When you select a supplier in the top table, the bottom table displays that supplier’s bids for each resource.
4.
To have the system rank the bids for each supplier, click the RFQ list, Rank Suppliers, and then either By Number 1 Rankings or By Total Cost.
The system calculates a rank for each supplier, which is shown in the Rank column of the top table. The number of resources for which each supplier is the leading bidder is shown in the Leading column.
5.
You can now perform any of the following actions:
•
Excluding a Supplier From an RFQ Analysis
•
Manually Setting Supplier Rankings
•
Analyzing Bids to Find the Best Supplier For Each Resource
•
Awarding RFQs
•
Accepting RFQ Bids as Valid Prices