Fourth Analytics Adaco: Quote Price Analysis

Overview

This article details the information displayed on the Quote Price Analysis dashboard. It also provides a guide on using this functionality to help users understand the impact of Products purchased at a price different to that of the Lowest Quote Available in Fourth Analytics for Purchasing & Inventory (Adaco).

The Quote Price Analysis tab compares the receiving price of Products purchased, to the Lowest Quote Available (LQA) for that Product from any Vendor for the relevant time period.

Quote Price Analysis Graphs and Dashboard

Trend Paid +/- Lowest Quote Available (LQA) Transaction Price 

This graph is displayed on the top-left corner of the page. 

It is preset with monthly data from the beginning of the last financial year. It shows the net (overall) difference for each month in terms of Product prices paid against the lowest quoted price.

Small variations to 0 indicate little difference to the lowest quoted price, figures above zero indicate that more was paid, and figures below zero indicate that less was paid. 

Fig.1 – Trend Paid +/- LQA Transaction Price Graph

Dashboard

The dashboard shown in Fig.2 is displayed on the top-right corner of the page.

This graphic indicates how much less was paid (in black) against the lowest available quote, and how much more was paid (red) against the lowest available quote. 

The Net Total is displayed for the chosen time period. 

In the example in Fig.2, a larger amount was paid more, compared to the amount where less was paid, resulting in a net overall cost for the month, where volumes of Products were purchased for more than the Lowest Quote Available for the period.  

Fig.2 – Paid More / Less Graphic

Trend Paid LESS/MORE 

These graphs display the breakdown of the net result in the Lowest Quote Available (LQA) between the amount paid less (left) and the amount paid more (right). 

 
Fig.3 – Trend – Paid LESS / MORE – LQA Transaction Price

In this example, the Paid LESS trend graph shows that in Sep 2022, $48,030 was saved. From the Paid MORE graph, £11,786 was paid more in Sep 2022. 

Top 10 LQA Savings / Overspend by Property & Buyer 

This graph shows the 10 greatest variations to LQA by Property (left) or Buyer (right) for the chosen time period.
 

Fig.4 – Top 10 LQA Savings/Overspend by Property & Buyer

LQA Savings/Overspend by Category/Vendor

This graph breaks down the saving/overspend by Vendor and Category, displaying the Total Received and Price Variance to the LQA.

Fig.5 – LQA Savings/Overspend by Vendor Category and Vendor

Lowest Quote Available Vendor Price Comparison 

This breaks down the price differences to LQA to show purchases with differences and comparable information on the LQA. 

Fig.6 – Lowest Quote Available Vendor Price Comparison

Lowest Quote Available Price Comparison by Purchase Order

This table shows individual Purchase Orders where the prices differ from the LQA. 

Fig.7 – Lowest Quote Available Price Comparison by PO

Using the Reports and Dashboards

In the example below, the process of looking at an opportunity where fruit and vegetable Products are being purchased from a source other than the LQA for the last month (using the dashboards and graphs detailed above) is detailed.

• Select the required Time Period using the Date Dimension (Business day) filter under Property Details
• Within the Product Details filters, set the Category filter as required
• The Trend Paid +/- LQA Transaction Price graphic (top right) will show if there is a significant difference in pricing being made, and the trend graph will indicate if this has also been the case historically
  • Small values in each of these graphics indicate there is little opportunity either due to minor price fluctuations or low volume of purchases, while high values indicate greater opportunity
• The Trend Paid LESS and Trend Paid MORE graphs will indicate if net movements have been made up of both underpayment and overpayment, or if there is consistency in one direction
• The Top 10 LQA Savings / Overspend by Property & Buyer will show which Property has the greatest opportunity cost/benefit, and which buyer(s) raised the Purchase Orders
• The LQA Savings/Overspend by Category/Vendor will show which category has the greatest opportunity cost/benefit, and with which Vendors
• Refer to the Lowest Quote Available vendor price comparison to determine which Products have made the biggest impact (sort by less / more columns highest to lowest as required)
  • If the Vendor is the same as the LQA Vendor, this indicates the Vendor is not always charging their LQA (the quote may have changed or invoices are not at quoted price)
  • If the Vendor is different to the LQA Vendor, this indicates that purchases have been made from a Vendor other than those with the LQA
  • As a result, the user may wish to change or restrict the choice of Vendors to increase savings or limit overspend

Purchasing & Inventory - Fourth Analytics