Applied AI
How to compare supplier quotes with AI without mixing up terms
By Julián Medina · Director of SourcingUp and creator of CommerceUp
Ask for a comparison of equivalent products, quantities, currencies, taxes, delivery and scope. Keep every value linked to its source and every missing detail visible. A neatly formatted table does not establish that the offers are comparable.
Normalize before sorting by price
One quote may include installation while another covers materials only. The ordering unit or tax treatment may differ too. Before asking which offer is best, define a common comparison and keep non-equivalent terms visible. If you convert currencies, state the rate, date and method instead of hiding them inside a total.
Keep every figure traceable to its source
Ask for each row to identify the supplier, source document and page or section reference where available. Missing terms should be flagged. For example, two delivery schedules must not both be assigned the more favorable deadline. AI prepares the comparison; the person making the purchase checks the scope before deciding.
Turn differences into questions
Finish the comparison with a short list of missing information for each supplier. That makes it useful for follow-up and negotiation. When a revised quote arrives, keep the previous version and identify what changed. Replacing a file without a record can leave the team discussing terms that no longer apply.
Put it into practice
- Separate price, taxes, delivery and installation.
- Verify technical equivalence and quantities.
- Mark missing data without completing it by inference.
- Check the original quotes before awarding the work.
The thinking behind this guide
A guide by Julián Medina. The scenarios are illustrative, not measured customer outcomes. My work at SourcingUp.