Bid comparison is the process of normalizing supplier quotations so prices, units, specifications, lead times, freight, taxes, payment terms, and exceptions can be evaluated on the same basis. The goal is to expose meaningful differences rather than compare totals that include different assumptions.
How does Bid comparison work in practice?
A bid comparison places supplier responses on a common commercial and technical basis. The buyer normalizes quantities, units, currencies, freight, taxes, exclusions and assumptions before comparing totals. Qualifications and deviations should remain visible. A clean comparison separates arithmetic from judgment so reviewers can see which differences come from price and which come from scope.
Quick reference for Bid comparison
| Check | What it means for the transaction |
|---|---|
| Category | Procurement and sourcing |
| Record to keep | Keep the requirement, requester, supplier response, evaluator and approval together when they apply. |
| Do not infer | Do not treat a sourcing record as a purchase order, invoice or proof of delivery unless that later document has actually been issued. |
