Compare quotes only after putting them on the same basis. Every supplier should be quoting the same drawing revision, material grade, finish, tests, packing and delivery terms. Then compare total landed cost, lead time, tooling and quality evidence, not just the unit price.
The lowest quote is often the one that left something out. Your job is to find what that is before you order.
Build a comparison sheet
Use one table with a column for each supplier and a row for each item below. Fill it from the quotes, and ask suppliers to fill any gaps in writing.
- The drawing revision and specification each supplier has quoted against.
- The material grade, and whether a mill or material test certificate is included.
- Heat treatment, plating, painting and any other finish.
- The tests and inspection documents included in the price.
- Tooling cost, tooling ownership and expected tool life.
- The minimum order quantity and the price at different volumes.
- Packing type and whether it is export-grade.
- The Incoterm and named place, such as FOB Mundra.
- Payment terms and quote validity.
- Lead time for samples and for production.
Convert to landed cost
A factory price is not what the part costs you. Add inland freight, sea freight, insurance, duty, port charges and delivery to your site. A quote on ex-works terms may look cheaper than one on FOB terms until you add the cost of getting goods to the port. The guide to FOB, CIF or DAP explains these terms.
Add your own costs too. Inspection, travel, testing and the cost of rejects all belong in the total.
Weigh quality and risk
Price is only one part of the decision. A factory with proper measuring equipment, material traceability and a clean audit is less likely to send you a bad batch. Give each supplier a simple score for capability, documents and communication, and set it beside the cost.
Be wary of a quote far below the others. Ask how it was built. Common reasons are a cheaper material grade, a missing process, thinner packing or a plan to subcontract. Some are acceptable. Others will cost you later, as described in common quality problems with Indian engineering goods.
Ask for a breakdown
For larger orders, ask each supplier to split the price into material, machining, outside processes, packing and overheads. You do not need perfect figures. You need enough detail to see where quotes differ and to negotiate on facts.
A breakdown also shows you how each supplier plans to make the part. If one supplier shows a large machining cost and another shows almost none, they may be planning different processes, such as machining from bar against casting near to shape. Ask both to explain. The difference may affect quality as well as price.
Next step
We send one complete enquiry to shortlisted suppliers and give you quotes on a like-for-like basis. Book a free sourcing review.