Transformed Pricing helps in comparing dis-similar suppliers image

Transformed Pricing is Key While Comparing Prices of Different Suppliers

Why do we need to transform prices received from suppliers? Procurement teams often face a scenario where they have to compare bids from suppliers that aren’t exactly similar. What do we mean by that? Here are some scenarios where bids received from suppliers aren’t comparable. Shipping costs are incurred by the buyer and are different for each supplier i.e. supplier provides goods ex-works and the buyer is responsible for transportation of goods. Payment terms are different Quality and service levels are different Switching costs are incurred with a new supplier Preference given to incumbent suppliers plus others If we need