1 Topic by doitashimashite (edited by doitashimashite 02/24/2013 09:55:03 am)

  • From: Netherlands, Amsterdam
  • Registered: 01/09/2013
  • Posts: 16

Topic: When purchasing an item, how to choose the cheapest supplier?

Let's take item nr. 1001 as an example. I can purchase this item from 5 different suppliers:

Supplier A: $ 0.90 / piece
Supplier B: $ 9.90 / dozen
Supplier C: $ 5.28 / box of six
Supplier D: $ 86 / per 100
Supplier E: € 650 / per 1.000

It would be nice if the Purchase Order Entry would offer an option like this:

First enter the item code.
Then show me a list of suppliers for this item, price according to "Purchasing Pricing", and price per piece (to our UOM and currency).
Then let me change the order of the list to (f.e.) cheapest supplier (per our UOM) on top.
Then let me place a Purchase Order for this supplier.

In this case, the list would look like this:

Item: 1001         (1001 - Paint can)

Supplier          Price            Currency             Supplier's Unit             Supplier's Description          Price (our UOM/our currency)
B                    9.90            USD                    per dozen                    Paint can (12)                     0.825
E                 650.00            EUR                    1.000                         Paint can 1.000 pc               0.858
D                  86.00            USD                    100                            Paint can /100 pcs               0.860
C                    5.28            USD                    box of 6                      Paint can, 6 in box               0.880
A                    0.90            USD                    a piece                        Paint can                            0.900

As far as I can see, FA doesn't support this workflow. Or does it?

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,160

Re: When purchasing an item, how to choose the cheapest supplier?

It would be nicer to view all prices in same units of qty and currency for comparison and listed sorted in ascending prices!

apmuthu's Website

  • elax
  • Senior Member
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  • From: UK
  • Registered: 05/17/2011
  • Posts: 326

Re: When purchasing an item, how to choose the cheapest supplier?

The thing is when you enter a PO, you already have chosen the supplier, so it doesn't really make sense to chose the supplier afterward. However you can check the supplier prices with Items/supplier prices, make up your mind and then place the appropriate orders to each supplier.

/Elax

4 Reply by apmuthu (edited by apmuthu 03/07/2013 04:18:20 pm)

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,160

Re: When purchasing an item, how to choose the cheapest supplier?

Probably what he means is that when ordering, we may not know which supplier has the cheapest price (or whatever criterion).

A page where an item can be selected and a list of suppliers with their prices can popup and one can be chosen. Many such line item pairs with respective quantities can be entered and then all the purchase orders can be generated in one stroke!

Item1   Supplier1(with Price)   Qty1
Item2   Supplier1(with Price)   Qty2
Item3   Supplier3(with Price)   Qty3
Item4   Suppier1(With Price)   Qty4
etc.,
Generate All PO.

apmuthu's Website

  • From: Netherlands, Amsterdam
  • Registered: 01/09/2013
  • Posts: 16

Re: When purchasing an item, how to choose the cheapest supplier?

apmuthu, that is exactly what I mean.

  • From: Netherlands, Amsterdam
  • Registered: 01/09/2013
  • Posts: 16

Re: When purchasing an item, how to choose the cheapest supplier?

In the current version of FA, is the above sketched workflow possible?

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,160

Re: When purchasing an item, how to choose the cheapest supplier?

To start with, we can make a report that lists the supplier in descending order of price for a specific item. If the last purchased price is very long ago, it will distort the order's inference. Hence a last purchased date too will need to form part of the report.

apmuthu's Website

  • From: Netherlands, Amsterdam
  • Registered: 01/09/2013
  • Posts: 16

Re: When purchasing an item, how to choose the cheapest supplier?

I would prefer FA to show me the current purchasing price, instead of the historical price based on past PO's.

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,160

Re: When purchasing an item, how to choose the cheapest supplier?

Then, FA would need some automatic means of assimilating the current purchasing price whenever it changes from the vendor end. Something like the daily Exchange rates!

apmuthu's Website

10 Reply by doitashimashite (edited by doitashimashite 06/30/2019 05:32:27 pm)

  • From: Netherlands, Amsterdam
  • Registered: 01/09/2013
  • Posts: 16

Re: When purchasing an item, how to choose the cheapest supplier?

I agree. Provided that something like that would be implemented in FA, I think this could greatly benefit the handling of PO's. It would at least save time that you would otherwise need to spend finding the cheapest supplier for the article(s) you're going to order. (That is, in case you work with multiple suppliers for a certain article.)