A quotation comparison template puts each supplier's quote on one row and gives it a score out of 100 for price, lead time, quality, payment terms and warranty, then ranks the suppliers and highlights the leader. The page also has an item-by-item price comparison and a purchase recommendation memo written from the result.
Score = sum of (criterion score × weight) ÷ sum of weights. In the sample, the second quote leads with 94.7 out of 100 even though its total of SAR 15,780.00 is SAR 120.00 above the cheapest, because it delivers in 7 days with a 24-month warranty.
How to use the quotation comparison template
- For each supplier, enter the name, the quote total before VAT, the lead time in days, payment terms and warranty in months.
- Rate quality from 1 to 5 after checking samples or from past dealings.
- Check the weights shown under each column, and change them under Advanced if your priorities differ.
- Download the sheet in Excel with its formulas, then open the purchase recommendation memo to send the result for approval.
What a quotation comparison is
A quotation comparison sits between the request for quotation and the purchase order: it puts the suppliers' replies to the same request into one table and picks the most suitable supplier, not only the cheapest. The cheapest quote may arrive two weeks late, ask for payment up front or carry a shorter warranty, and none of those costs shows in the price.
How to compare supplier quotes with weighted criteria
Each criterion scores out of 100: price = lowest total ÷ this quote's total × 100, lead time = shortest lead time ÷ this lead time × 100, quality = rating ÷ 5 × 100, warranty = this warranty ÷ longest warranty × 100, and payment on a fixed scale (net 90 scores 100, net 60 90, net 30 80, cash on delivery 60, partial advance 40, full advance 20). Each score is then multiplied by its weight.
With weights of 40%, 20%, 20%, 10% and 10%, the cheapest quote (SAR 15,660.00) takes 14 days and scores 79, the second scores 94.7, the fourth 77.6, and the third, with the best quality, 77.3 because it is cash-only and takes 21 days. In the "price, lead time, quality only" example with weights of 50%, 20% and 30%, a cheaper supplier with a price score of 100, lead time 80 and quality 60 gets 50 + 16 + 18 = 84, and a dearer supplier beats it with 87.5.
Supplier selection criteria beyond price
Beyond price: lead time, quality, warranty, payment terms, the supplier's reputation and its record of meeting dates. The first five are columns in the sheet; reputation and reliability feed into the quality rating. Agree the weights before opening the quotes so they are not tailored to one supplier, and set a weight to zero to drop a criterion. If two scores tie, the status shows "Tied for first": settle it on price or by negotiating.
From quotation comparison to purchase order
The choice is documented in the purchase recommendation memo: number of quotes, criteria, the leading quote with its score and total (SAR 18,147.00 including VAT in the sample), the ranked table and the justification. Once approved, the purchase order goes to the winning supplier, which has its own tool, and the quotes and sheet are filed with the memo for audit. The item-by-item tab shows the cheapest quote per item if your request allows a split award.
Common comparison mistakes
- Comparing a VAT-inclusive price with a price before VAT.
- Changing the weights after seeing the prices.
Tax and accounting notes
The sheet uses a VAT rate of 15% under the Saudi VAT Law (to be verified), editable in the settings. Ask for the VAT registration number of any supplier that adds VAT, because its invoice must carry that number for the VAT to count as input tax.
When every purchase needs a comparison
Microtec accounting software brings sales, purchasing, inventory, finance and HR into one place for businesses in Saudi Arabia.
Frequently asked questions
How many suppliers should a quotation comparison include?
At least three, which many purchasing policies require, and the sheet takes up to six. If your company's purchasing policy sets another number, follow it.
Are the criteria weights fixed?
No. The default weights are a suggestion; change them under Advanced or on the Settings sheet of the Excel file and the scores and ranking update at once.
Is the template an Excel file?
Yes. Every score and rank is a real formula in the file, the weights and VAT rate sit on their own sheet, and there is a button for a blank copy.
Does the cheapest quote always win?
No. In the sample the cheapest scores 79, and a quote SAR 120.00 dearer leads because it delivers in half the time with double the warranty and longer credit. Raise the price weight if cost is your only priority.
Is the quotation comparison template free?
Yes. The sheet and files are free with no account; a short contact form appears once before the first download.