Supplier RFQ Quote Comparison Worksheet
Comparing quotes on unit price alone often picks the wrong supplier. This worksheet puts price, freight, duty, MOQ, lead time and payment terms side by side and calculates landed cost per unit, so the comparison reflects what you will actually pay.
| Supplier | Unit price | Freight per unit | Duty % | Landed cost per unit | Order quantity | Extended landed cost | MOQ | Lead time (days) | Payment terms | |
|---|---|---|---|---|---|---|---|---|---|---|
$15 | $75,750 | |||||||||
$15 | $72,750 | |||||||||
$13 | $65,950 | |||||||||
$16 | $78,000 |
Landed cost here is unit price plus freight per unit plus duty on unit price. Add rows or columns in Excel for tooling, packaging, inspection or inventory carrying cost of long lead times. Price is not the only factor: weigh quality, delivery and risk before awarding.
Pull RFQ and price history from your ERP
Optional: we can outline how quote comparisons and historical purchase prices can be assembled from ERP data.
Optional. The tool and every export work without this. No spam.
How to use the worksheet
Replace the example rows with one row per quoted supplier. Enter unit price, freight per unit and duty percent. The sheet calculates landed cost per unit and extended cost at your order quantity. Compare MOQ and lead time against your need, and note payment terms because longer terms have a cash value. Export to Excel to add notes, attach quotes or share the comparison with approvers.
The formula and what it leaves out
Landed cost per unit equals unit price plus freight per unit plus duty on the unit price. Extended cost multiplies by quantity. The spread between the highest and lowest landed cost shows how much choosing the cheapest option saves. The model deliberately omits items that vary by case, so add them when relevant.
- Tooling, setup and NRE amortized over volume
- Inspection, testing and packaging costs
- Inventory carrying cost for long lead times and large MOQs
- Currency risk and payment terms value
- Quality cost: expected rejects, rework and expediting
Common mistakes
The classic error is comparing an ex-works price with a delivered price. Convert everything to the same Incoterms basis first. Another is ignoring MOQ: a low unit price with a very high MOQ may force excess inventory. Watch for quotes with different specifications or revisions, which makes the comparison meaningless, and do not select solely on price when the cheaper supplier has a weak delivery record.
From comparison to award
Use the worksheet to shortlist, then run a weighted decision including quality, delivery, financial stability and risk. Record the winning quote and the rationale with the purchase requisition so the decision is auditable. In your ERP, update the vendor price or purchase info record only after the award, and keep the comparison with the sourcing file.
Frequently Asked Questions
What is landed cost?
Landed cost is the total per-unit cost of getting an item to your door, including unit price, freight, insurance, duty and other charges. It gives a fairer comparison than unit price when suppliers quote on different shipping and duty bases.
How many quotes should I get?
Many companies require three quotes above a spend threshold, with fewer for sole-source or customer-directed items. Your procurement policy sets the rule. The aim is real competition on comparable specifications.
Should I always choose the lowest landed cost?
Not necessarily. Total cost also includes quality, delivery reliability, risk and payment terms. A slightly higher landed cost with strong performance and short lead time can cost less overall once rejects, expediting and inventory are counted.
How do I compare quotes in different currencies?
Convert all quotes to one currency using the same rate and date, and consider exposure if the contract runs long. Note the rate used in the worksheet so approvers can reproduce the numbers.
If you want RFQ comparisons and price history pulled from your ERP automatically, Netray can help build that view on your own data.
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