BUYER TOOLKIT 04 / COMMERCIAL COMPARISON
PRICE · SPECIFICATION · LOGISTICS · TOTAL PROPOSITION
Compare like
with like.
A practical method for comparing supplier offers without allowing a single unit price to conceal material differences in the underlying proposition.
THE COMPARISON RULE
Equivalent price
requires an equivalent offer.
Two quotations may appear comparable while differing in product format, specification, packaging, delivery basis or support requirements.
Commercial evaluation should therefore begin by normalising the proposition before comparing cost.
COMPARISON CHECKLIST
Six things to
normalise first.
01Product
Confirm the same physical ingredient is being compared.
02Specification
Check critical limits and acceptance basis.
03Packaging
Account for pack architecture and handling implications.
04Trade Terms
Compare quotations on the same commercial basis.
05Logistics
Understand destination and delivery responsibilities.
06Continuity
Evaluate the economics of repeat supply, not one shipment.