TABLE OF CONTENTS
- Introduction
- What is a Quote Analysis
- What is an Item Coverage
- What is a Volume Coverage
- Explanation
- Flowchart
Introduction
This article is about the logic update in the scenario comparison module.
Before diving into details let's understand a few concepts, to better understand this update.
What is a Quote Analysis
Quote analysis is a process where the quotes from the suppliers are compared to settle for the best deal.
What is an Item Coverage
Item coverage is the measure of the number of items quoted by the suppliers to the number of items sent in RFQ.
Item coverage is considered 100% when the supplier submits a quotation for all the requested items. E.g., Pen and Pencil are items requested in RFQ. If the supplier submits a quotation for both items then item coverage is 100%.
What is a Volume Coverage
Volume coverage is the measure of quantity quoted by the supplier to the number of quantities requested in RFQ.
Volume coverage is considered 100% when the supplier submits a quotation for all the quantities. For example, 10 Pens and 20 Pencils are requested, and if the supplier quotes for a Pen of 10 Qty and Pencils for 20 Qty then Volume coverage is 100%.
Explanation
Before this update, during the quote analysis, the best supplier is calculated based on the lowest subtotal value.
In this release, we have updated the logic of the 'Best Supplier'.
The quote from the supplier will be considered only if the
- Item coverage is 100%.
- Volume coverage is 100%.
If no suppliers meet this baseline, no suppliers are considered as the candidates for the best supplier. Only those who meet the above baseline condition are considered for the best quote.
The quote from the suppliers with 100% item coverage and 100% volume coverage will be considered, and from these suppliers, the supplier with the least subtotal value will be selected as the best supplier.
Flowchart
Please feel free to reach out to support@aerchain.io should you have any questions or feedback.