What makes an RFQ comparison fair?
A fair RFQ comparison checks whether every supplier has priced the same requirement, delivery point, tax basis, payment term, warranty condition and documentation scope. The lowest quoted price is not automatically the best commercial option because one supplier may exclude freight, customs clearance, installation, testing, certificates, spares or training. Procurement teams should first normalize each offer into a true comparable cost, then review technical compliance and supplier risk. This prevents award decisions from being driven by incomplete prices. A good comparison should show the headline quote, each adjustment, the final true cost, the lowest adjusted supplier, and any commercial risks that still need approval before purchase order release.
Step 1: confirm equal scope
Start with the RFQ requirement, not the supplier spreadsheet. Check whether each offer includes the requested quantity, brand or specification, drawings, data sheets, inspection requirements, test certificates, manuals, warranty, delivery location and packaging. If one supplier excludes an item that another supplier includes, either price that missing item or mark the offer as commercially incomplete. This is the most important step because a calculator cannot fix a bad scope comparison. If the technical team has issued a compliance matrix, keep that matrix beside the commercial comparison so the award note does not recommend a cheaper but non-compliant offer.
Step 2: add tax, freight and duty
Once scope is aligned, add the charges that move a supplier price from quote value to true cost. Common adjustments include VAT or sales tax, import duty, customs clearance, freight, insurance, local delivery, unloading and site handling. For imports, also check whether the supplier quoted EXW, FCA, FOB, CIF, DAP or DDP terms because the buying company may carry different logistics responsibilities under each term. For local purchases, confirm whether the price includes delivery to the final site or only collection from the supplier warehouse.
Step 3: compare payment and delivery risk
Payment terms can change the real cost of a supplier award. A supplier requesting a high advance payment may look cheaper but create cash-flow risk, bank guarantee cost or exposure if delivery is delayed. A supplier offering credit terms may justify a slightly higher headline price if the delivery and warranty terms are stronger. Lead time also matters. If the project needs material in 30 days, a cheaper 90-day supplier can create delay costs that exceed the saving. Add known payment charges and note lead-time risk separately if the value cannot be priced reliably.
Example RFQ comparison
| Supplier | Quote | Adjustments | True cost | Decision note |
|---|
| A | 95,000 | Delivery, testing, documents: 14,000 | 109,000 | Lowest quote, not lowest true cost. |
| B | 102,000 | None | 102,000 | Best commercial option if technically compliant. |
| C | 99,500 | Freight and duty: 8,200 | 107,700 | Review import exposure. |
Common RFQ comparison mistakes
The most common mistake is ranking suppliers before checking exclusions. A buyer may see three prices and assume they are comparable because they came from the same RFQ. In practice, suppliers often answer the same request differently. One supplier may quote supply only, another may include delivery, and another may include installation support but exclude testing. The second mistake is hiding uncertainty. If freight, tax, duty or missing scope is unknown, record it as a risk instead of ignoring it. The third mistake is mixing technical and commercial decisions. A supplier can be commercially lowest and still fail technical review. The award note should keep both points visible.
Documents to keep with the comparison
- The original RFQ or enquiry document.
- All supplier quotations and revised offers.
- Technical compliance sheet or engineer comments.
- Commercial clarification emails.
- Delivery, warranty and payment term confirmations.
- The final true-cost comparison table and recommendation note.
Keeping these documents together protects the award decision. If an approver asks why the cheapest quote was not selected, the comparison should show the exact adjustment or exclusion that changed the result.
When to request a revised quote
Request a revised quote when a supplier has left important items unclear. Do not guess the cost of major exclusions such as installation, commissioning, warranty, freight or customs unless there is a reliable benchmark. Ask the supplier to confirm whether the item is included, excluded, optional or not applicable. If the supplier changes the scope during clarification, save the revised quote and use that version in the final comparison. This avoids disputes after award and gives finance or management a clearer audit trail.
Use the calculator
Use QuoteCostCalc to enter the supplier prices, hidden costs and payment adjustments. Then attach the copied procurement note to the RFQ file together with the original supplier quotations and technical evaluation.
