Industrial Procurement · Procurement problem

Quotations that cannot be compared

Different scopes, different Incoterms, different exclusions — same spreadsheet.

Buyer-side guidance·Supplier-neutral·Free for buyers
Quick Answer
Quotations become comparable when the buyer fixes three things in the RFQ: the scope boundary, the Incoterm and delivery destination, and a mandatory exclusions list. Everything else — payment terms, lead time, warranty, spare parts — should be answered in a fixed response format so that a like-for-like table can be built without chasing clarifications.

The three variables that destroy comparability

  • Scope boundary: supply only versus supply and installation versus turnkey, including or excluding civil works, utilities connection and commissioning.
  • Commercial terms: EXW, FOB, CIF and DAP move freight, insurance, customs and inland transport between the two parties.
  • Silent exclusions: control panels, integration with existing lines, foundations, training, spare-parts packages and performance testing are the items most often left out.

Normalise before you evaluate

Rebuild every offer to the same delivery point and the same scope. Add missing items at your own estimate and mark them as adjustments so the correction is visible during the internal review.

Then extend the comparison beyond price: energy consumption per unit of output, consumables, expected maintenance, spare-parts pricing, warranty duration and the realistic response time for service in your country.

Fix the response format in the RFQ

The single most effective change is requiring suppliers to answer in your structure rather than their template — a priced line-item breakdown, an explicit exclusions section, a delivery schedule and a completed technical compliance table with deviations stated.

Frequently asked

Should the budget be shared with suppliers?+

Sharing a broad range often improves the quality of the response, because suppliers can propose the right configuration class instead of guessing. Sharing an exact figure tends to compress the offers toward that number.

Is the lowest quotation usually the cheapest project?+

Not reliably. Once freight, installation, energy, spares and downtime are included, the ranking frequently changes. A lifecycle view over the expected operating years is the comparison that matters.

Continue with our commercial resources

Hand-picked next steps for this topic — special purpose machinery and industrial project financing.

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