Two numbers for the same product are almost never two numbers for the same offer. Before comparing them, bring both onto a single basis.
The normalisation checklist
- Delivery term and named place. An ex works number and a delivered duty paid number differ by the whole transport and formality envelope. Build the bridge cost explicitly.
- Specification. Grade, calibre, defect tolerance, moisture, microbiological limits and shelf life. A looser specification is a lower cost of production, not a better supplier.
- Packaging. Bag structure, case format, pallet pattern and whether the pallet is included, exchanged or charged.
- Quantity basis. Net or gross, and the tolerance the supplier will ship against.
- Payment terms. Days of credit carry a cost of money that belongs in the comparison.
- Validity and currency. A quotation valid for a week in one currency and a month in another are different instruments.
- Certification and testing. Which scheme, which tests, and who pays for them.
- Documents. Which certificates are included and which are charged.
Then look at what is left
When two normalised numbers land within the uncertainty of your own freight and handling assumptions, they are the same number, and the decision moves to reliability, capacity, audit history and how the supplier behaved during the last crop failure.
Record the assumptions next to the comparison. Six months later nobody remembers whether the destination terminal charge was included, and the comparison becomes unusable.
How a quoted number is built in the first place is covered in the pricing models guide. Vorezan is an information platform and does not quote, broker or negotiate.
