In brief
A bid comparison sets several quotations for the same enquiry against each other in terms of price, scope and terms in order to select the most economical one.
Contents
What is Bid comparison?
The bid comparison follows a request for quotation (RFQ) sent to several suppliers and forms the basis for the award decision. It makes quotations comparable, which are often structured differently, and documents why a supplier was selected. In many companies, it is an internal requirement above certain order values. At the same time, it supports traceability during internal audits.
A distinction is made between the quantitative price comparison and the qualitative comparison. In the price comparison, all costs are brought to a common basis: unit price, quantity scales, discounts, surcharges, minimum quantities, delivery terms and payment terms. The qualitative comparison assesses criteria such as lead time, warranty, certificates, supplier evaluation results and technical conformity, often in a weighted scoring analysis.
For spare parts, the technical check is particularly important. Quotations may relate to the original part, an alternative part or a different version without this being apparent at first glance. A price advantage loses its value if the part does not fit, arrives much later or is delivered without the required documents.
In practice: maintenance and procurement
For a fair comparison, the enquiry itself should be worded consistently: manufacturer part number, quantity, required delivery date, delivery terms and documents needed. In the comparison, it should be noted for each quotation whether the original or an alternative was offered and which lead time applies.
Synonyms and abbreviations: quotation comparison · bid tabulation · quote comparison · bid evaluation · price comparison sheet
Frequently asked questions
How do you prepare a bid comparison?
First, all quotations are transferred to a uniform table, with line items, quantities, unit prices, surcharges, lead time, delivery terms and payment terms. Then the total costs per quotation are calculated and qualitative criteria assessed, such as technical conformity and supplier reliability. Finally, the decision is justified and documented.
What is a price comparison sheet?
A price comparison sheet is a tabular comparison of the prices in several quotations, usually line by line. It is the quantitative core of a bid comparison. A price comparison sheet alone is rarely sufficient, however, because lead time, quality, terms and technical deviations often change the answer to the question of which quotation is the most economical.
Which criteria belong in a bid comparison?
Besides price, the criteria include volume discounts, minimum order quantities, incidental costs, lead time, delivery terms, payment terms, warranty, accompanying documents such as certificates or declarations of conformity, and past experience with the supplier. For technical parts, it is crucial whether exactly the requested part or an alternative is being offered.