How to Compare Supplier Quotes: A Practical Supplier Evaluation Guide
Two quotes for the same product can differ in far more than price. This supplier evaluation guide puts quotes on the same footing: total cost, terms, lead time and risk.
5 min lesing
Two quotes for the same product can differ in far more than price. One includes freight and the other does not, or one is valid for 60 days and the other for 10. Good supplier evaluation means putting every quote on the same footing before you decide, so the cheapest-looking offer does not win by accident.
This guide gives you a checklist to compare supplier quotes for packaging, print, signage and promotional products, and a simple scoring table you can reuse.
What supplier evaluation covers
Supplier evaluation, also called supplier appraisal, is an assessment of whether a supplier can deliver what you need. The procurement body CIPS describes it as an assessment of a potential supplier's capability of controlling quality, delivery, quantity and price, and notes that it can happen before or after a contract is signed.
For a single order you rarely need a full audit. You need to answer four questions from the quotes in front of you: what will it really cost, when will it arrive, how confident are you in the quality, and what risk are you taking on? The sections below go through each question in turn, then bring the answers together in one score.
It also helps to decide your criteria before the quotes arrive. If you set the weights after seeing the prices, it is tempting to adjust them until your favourite supplier wins.
How to compare supplier quotes on total cost
Unit price is only one line, so build the total cost for each quote before you rank them.
- Product price for your exact quantity. If you asked for price breaks, compare each break separately.
- One-off costs: printing plates, cutting dies, tooling, proofs and setup. Ask whether tooling is reusable for repeat orders.
- Freight to your address, and whether unloading is included.
- Packing: pallets, cartons and any charge for returnable pallets.
- VAT treatment: for goods sent to a business in another EU country, the EU's guidance is that the seller does not charge VAT if the customer has a valid VAT number. Compare all quotes excluding VAT so the figures line up.
Align the delivery terms
Check the Incoterm on every quote: with EXW you collect the goods yourself; with DAP the seller pays carriage to the named place and, as the ICC explains, the buyer unloads, while under DPU the seller unloads. A quote on EXW terms needs freight and handling added before you can compare it with a DAP quote. Our guide to Incoterms 2020 explains the common terms.
Watch for specification changes
Suppliers sometimes quote a cheaper alternative: thinner board, fewer colours, another fabric. That can be a good idea, but evaluate it separately. Ask every supplier for a price on your original specification first, then look at the alternatives as options.
Lead time, validity and payment terms
Count backwards from the date you need the goods: proof approval, production, transport and a buffer for corrections. A quote that only works if everything goes right first time is weaker than it looks.
Check how long each quote is valid, since a short validity can force you to decide before the other answers are in. If that happens, ask for an extension rather than rushing.
Payment terms and cash flow
Prepayment, 30 days net or a deposit change your cash flow and your risk. Under the EU Late Payment Directive, payment periods agreed between businesses should not exceed 60 calendar days unless expressly agreed otherwise and not grossly unfair to the creditor. For a first order with a new supplier, a deposit or a smaller trial order is common and reasonable on both sides.
Supplier evaluation beyond the price
Price differences are easy to see, but differences in reliability are not, so look for evidence.
- Company checks: a valid VAT number in VIES and a registered company that matches the name on the quote.
- Certificates: if the quote mentions ISO 9001, ISO 14001 or FSC, check the certificate code. ISO itself recommends using IAF CertSearch or the certification body to confirm an accredited certificate.
- Capacity: can the supplier handle repeat orders or a larger volume if you grow?
- Communication: did the supplier ask relevant questions, answer on time and point out a problem in your files?
The way a supplier handles the quote is often the best preview you will get of how the order will be handled.
Questions to send back before you decide
If two quotes are close, a short round of questions often settles it. Send the same questions to each supplier so the answers stay comparable:
- Is freight to our address included, and is unloading included?
- Which costs are one-off, and which repeat on the next order?
- From which date does the lead time start: order, file approval or proof approval?
- Can you send a sample or a photo of a similar job?
- What happens if the delivery is late or the print does not match the approved proof?
A simple scoring table to evaluate suppliers
When quotes are close, a weighted score makes the decision easier to explain to colleagues. Choose weights that match the order, then score each supplier from 1 to 5.
| Criterion | Example weight | What to look at |
|---|---|---|
| Total cost | 35% | Price, one-off costs, freight, packing |
| Lead time and delivery | 25% | Fits your deadline, realistic buffer, Incoterm |
| Quality and capability | 20% | Samples, certificates, equipment, references |
| Terms and risk | 10% | Payment terms, validity, company checks |
| Communication | 10% | Speed, precision, useful questions |
Score each supplier on each line, multiply by the weight and add up. Write one sentence next to each score explaining it. That note is what makes the result useful later, when someone asks why the second-cheapest quote won.
The weights are a starting point, not a rule. For a trade fair with a fixed opening day, lead time may matter more than price; for a large repeat order, total cost and capacity may dominate.
Compare supplier quotes side by side on Flobid
On Flobid, the quotes for a request come back in one table with price, lead time and terms, on a DAP basis by default, so the first round of comparison is done for you. If you want a checklist to use outside the platform, download our free Quote Checklist. For the step before this one, see what an RFQ should contain.
Sources
- Supplier Appraisal, CIPS Knowledge Works (2013)
- VAT for companies factsheet, Your Europe, European Union
- Incoterms 2020: DPU or DAP?, ICC Academy
- Directive 2011/7/EU on combating late payment in commercial transactions (recast), legislation.gov.uk (2011)
- Check a VAT number (VIES), Your Europe, European Union
- How to verify an accredited certification, ISO
Ofte stilte spørsmål
Should I always choose the cheapest quote?
Not necessarily, and you should compare the total cost including freight and one-off costs, the lead time, the payment terms and how well the supplier understood the request.
What are the main supplier evaluation criteria?
Total cost, delivery terms and lead time, quality and capability, payment terms and financial risk, and how the supplier communicates. Weight them according to what matters most for the order.
How do I compare quotes with different Incoterms?
Convert them to the same basis by adding freight, insurance and unloading costs to EXW or FCA quotes so you can compare them with delivered prices such as DAP.