How to Compare International Supplier Quotations
How do you compare offers that are not written on the same basis?
Offers become comparable only after normalisation: the same Incoterm and named place, the same currency at one stated rate and date, the same payment terms, the same packing scope, the same validity and the same technical compliance basis. Only then can price be read. The lowest headline figure frequently becomes the highest landed cost once freight, packing, lead time and non-compliance are added.
Published 2026-09-19 · Reviewed by the REPONS procurement desk · Next review 2027-03-19 · 9 min read
Normalise before you compare
Build one table where every offer is restated on the same basis. Convert each to the same Incoterm by adding the missing cost elements, convert currency at one rate with the rate date recorded, and restate payment terms as a financing cost where they differ materially.
| Element | Why it distorts comparison |
|---|---|
| Incoterm | EXW against CIF hides the whole freight leg |
| Currency | Different rates and rate dates change the ranking |
| Payment terms | Advance payment is a real financing cost |
| Packing | Export packing is sometimes excluded and later invoiced |
| Lead time | A late delivery may cost more than the price gap |
| Validity | A short validity may expire before award |
| Certificates | Missing documentation can stop a shipment |
Score technical compliance separately from price
Classify each offered item as compliant, compliant with deviation, alternative, clarification required or non-compliant. Keep this classification visible next to the price rather than folding it into a single score, so the decision-maker can see exactly what is being traded away.
Read landed cost, not unit price
The commercially meaningful number is the delivered cost of a compliant item at the required date. Assemble it from supplier price, inland transport, export packing, inspection, certification, freight, insurance and destination charges — and state clearly which of those the buyer carries under the chosen Incoterm.
Comparison checklist
- All offers restated to one Incoterm and named place
- One exchange rate, one rate date, recorded
- Payment terms expressed as a cost, not a footnote
- Packing scope confirmed per offer
- Technical compliance classified per line
- Deviations listed openly, not buried
- Lead times compared against the required date
- Validity checked against the expected award date