This article details the information displayed on the Quote Price Analysis dashboard, and a guide on using this functionality in order to help the user understand the impact of Products purchased at a price different to that of the Lowest Quote Available in Fourth Analytics for Purchasing & Inventory.
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-hand side of the page.
It is pre-set 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
The dashboard shown in Fig.2 is displayed on the top right-hand side of the page.
This graphic indicates how much less was paid (in green) against the lowest available quote, and how much more paid (red) against the lowest available quote.
The Net Total (orange box) is displayed for the chosen time period.
In the example in Fig.2 , a larger amount was paid less, compared to the amount where more was paid, resulting in a net overall benefit for the month of £37,847, where volumes of Products were purchased for less 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 Nov 2017, 17,759 was saved. From the Paid MORE graph, £354,213 was paid more in Nov 2017.
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 the 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 lowest available quote 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