How to Compare Supplier Quotations

Compare quotations on consistent specifications and commercial terms.

Make the specifications consistent

Use the same product description, material, dimensions, packaging, quantity and quality expectations for each request. Ask suppliers to identify assumptions or exclusions.

Compare the full offer

Review unit price and currency, minimum quantity, tooling or setup charges, packaging, sample costs, payment terms and production lead time. Check the validity period and what happens if quantities change.

Clarify delivery terms

Confirm the named Incoterms rule, place and responsibilities with each supplier. Freight, duties, taxes and inspection may be additional; obtain separate estimates from suitable providers.

Record open questions

Use a comparison table and ask for written clarification before deciding. A lower unit price is not necessarily the lowest total landed cost.

Requirements vary by product and destination. Verify applicable import, safety, labelling and other requirements for your circumstances with qualified parties.