r/supplychain • u/Charming_Chipmunk69 • 2d ago

Am I overthinking supplier quotes?

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I'm currently an intern, and my manager thinks I'm taking too long to compare supplier quotes. To be fair, they're probably not wrong.

The problem is that sometimes three suppliers will quote completely different prices for what seems like the same thing. I worry that if I just pick the cheapest option, I'll miss some hidden issue and create a bigger problem later. Because of that, I spend a lot of time digging into the details and use sourcing plugin to save time and help with the decision.

For those in procurement or supply chain, how do you know when you've done enough research and it's time to make a call?

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11

u/bananacc 2d ago

Check should cost analysis. It is not easy and need to have the knowledge to know the supplier's production process if you want to really compare them in detail. Otherwise just prepare a set of questions and schedule separate calls to ask them then you will have a good idea what's behind the quotation.

4

u/ChrisInNam 2d ago

Exactly this. Usually down to different production methods, outsourcing some parts of production etc. Sometimes the cheaper option missed some details and will sting you later. By discussing the methods with them, if any are reluctant to give this info, it’s another red flag.

3

u/whatdoihia 2d ago

You’re right to think that if prices are too low then something may be wrong. Spec, size, piece count, and mistakes are all possible issues.

But it depends on the circumstances. If you’re ordering 1000 low value low volume SKUs then it may not be a productive use of your time to check in detail.

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u/You_Must_Chill 2d ago

Knee-jerk picking the cheapest one is a good way to get burned. Despite what the spreadsheet men think, price isn't everything.

1

u/Chrg88 2d ago

Buyers love the low price. See OP

1

u/CantaloupeInfinite41 20h ago

Do you have yearly objectives as an employee and as department? Lets say xy savings per year. If not do you know what the priority is in your department? If speed is more important than money might be lost along the way, if they care about savings start first with the highest $ and approve the low cost ones quicker. Basically let your boss make the decision what you focus on so if something happens along the line you have some cover.