Selecting the Suitable Vendor Price

| 3 minutes

Purchasing Dept. may provide quotations for a product from more than 1 Vendor. In this case, Salesperson must analyze and determine the PO price to be selected when creating a Sales Quotation. It is important that different aspects are considered before sending the quotation to the Customer as it may cause inconveniences in the future if a wrong quotation has been sent to the Customer.

Following are the points to consider to select the suitable vendor price:

• PRICE

Prices may vary slightly or even drastically depending on each Vendor. By simple logic, selecting vendors with lowest prices will make the most sense when quoting. However, other points such as quality and registration requirements must also be considered. Check the other points below for further details.

Additionally, sometimes it happens that the Vendor has misquoted this particular PO. Salesperson can check this by comparing a Vendor’s price to other Vendors’ or getting further confirmation from the Purchase person. BD Salesperson may also check all history of a product’s quoted prices on the Purchasing Dept. database here: Purchasing Module: Quotes .

The fastest way to find a specific product is to copy paste the Product Code in the search bar and to sort by Packaging on the table. If BD Salesperson comes across a different Vendor that historically has lower pricing and may comply with the RFQ requirements but not quoted by Purchasing Dept. BD Salesperson can personally inquire further to the Purchasing Person.

• VENDOR BACKGROUND & HISTORY OF QUALITY COMPLAINT

To see whether a Vendor is experienced in a particular product range/market, BD Salesperson can check the background and history of past projects that have been completed with the Vendor. Open the Contacts module and search for the Vendor Contact Card. The most important points to check before deciding a Vendor includes checking the:

a. Site documents: lists all documents that may be crucial for a registration
b. Export to: lists all countries that the Vendor has exported to, with or without registration
c. Vendor Tickets: lists all product quality complaints that we have experienced with a Vendor

Other information may also be found such as the number of Quotations, Orders, or Registrations that we have ongoing/completed with this particular Vendor.

It is important that BD Salesperson weighs the priority between Vendors with least quality complaints and more export experiences compared to just the lowest price point.

• REGISTRATION COMPATIBILITY

Purchasing person will confirm via task the documents/requirements that may or may not be fulfilled by a Vendor. The following is some of the basic scenarios:

a. For registration in more regulated countries, it is important that BD Salesperson prioritizes registration compatibility over pricing.
b. For registration that either requires SRA certification or Inspection, cross analyze the benefits of registering each Vendor as well as Customer preference. Oftentimes, a Customer may demand some sort of refund for Inspection cost. In this case, consider whether the increase in profit makes sense, or whether the Vendor may also offer a refund.
c. Other than vendor site documents mentioned in the previous point, BD Salesperson must also consider the quality of product documents that a Vendor can provide (such as CTD dossier, COA, etc.) for registrations. BD Salesperson can deduce this information by checking at the registration history of a Vendor, whether we have prior registration experience with a Vendor for which countries. All this information can be found here: Registration Module: Product Registration

• NO VENDOR NAME REQUIREMENTS

For No Registration RFQs that do not require Vendor site documents such as GMP, ML, etc., it is preferred that the final packaging of the product does not contain Vendor information. Confirm with Purchasing Dept. which quoted Vendors can accept this requirement. Sometimes, Purchasing Dept. may quote a lower price from a Vendor that requires Vendor name on the packaging. BD Salesperson must consider the price differences and determine whether a lower price point will benefit the risk of providing vendor details to a Customer.

After all the above has been considered, BD Salesperson can make a better informed decision in selecting the Vendors to quote from.

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