Factory sourcing
How to compare factory quotations beyond the unit price
Build a quotation comparison around matching specifications, included costs, order constraints and delivery terms, so price differences can be explained.
Check that each supplier has priced the same product
Start the comparison with the product version, order quantities, materials, finish, accessories, packaging and acceptance requirements. A lower price may refer to a different construction or omit something in the original brief. Keep supplier alternatives, but compare them separately from the requested specification. Mark unresolved details as questions; do not assume that every factory has interpreted an incomplete brief in the same way.
Points to check
- Check the drawing or sample version cited in the quotation.
- List specification differences and omitted items.
- Give alternative proposals their own comparison rows.
Break out included and excluded charges
Ask what the unit price covers, including accessories, labels, inner packaging and outer cartons. Record sample charges, tooling, printing setup, testing, inspection and special packaging where they apply. An unlisted charge is not necessarily included. For one-off expenditure, clarify its purpose, ownership or usage arrangements, and whether it will recur on a repeat order before allocating it across the purchase.
Points to check
- Separate product cost, one-off charges and other services.
- Record currency, tax treatment and quotation validity.
- Get a specific explanation of items described as included.
Put delivery and payment terms beside the price
Prices with different delivery locations or service responsibilities do not become comparable simply by converting them into one currency. Record the agreed handover point and who arranges each transport, handling and document task. Include payment amounts and the conditions that trigger each payment. Where the meaning of a trade term is unclear, resolve it with the parties involved before using it to estimate the remaining costs.
Points to check
- State the actual delivery location and included services.
- Link payment milestones to agreed conditions.
- Flag gaps in responsibility before comparing totals.
Compare minimum quantities and production conditions
A lower unit price can require a larger commitment per model or colour. Ask how minimum quantities, mixed orders, repeat orders and split deliveries are handled. Align the starting conditions behind production estimates and distinguish sampling, material preparation and manufacturing. If demand is uncertain, assess the order against your stock and cash requirements as well as the quoted quantity discount.
Points to check
- Check the unit used to calculate the minimum order.
- Identify approvals or materials needed before production starts.
- Record restrictions on replenishment and quantity changes.
Investigate large differences before negotiating
An unusually low or high quotation deserves clarification, but price alone does not establish reliability. Ask specific questions about materials, processes, quality checks, packaging and delivery scope. Request corrected quotations where the supplier has missed a requirement. Samples, documents or an agreed site check may help resolve remaining questions. Keep unsupported explanations separate from verified information rather than turning an assumption into a conclusion.
Points to check
- Ask what accounts for the difference, not only for a discount.
- Record the evidence needed to resolve each question.
- Assign an owner and a response date to open items.
Keep a comparison that supports the purchasing decision
The final table should bring together price, additional charges, specification exceptions, payment terms, timing, quality arrangements and outstanding questions. Set the priorities for this order before choosing a supplier. XUANHEYI can help collect quotations, clarify differences and document the responses. The decision should rest on the confirmed information for the order, with the final choice remaining yours.
Points to check
- Record the source, date and version of each quotation.
- Keep confirmed facts distinct from conditional offers.
- Recheck validity and unresolved items before placing the order.
These guides provide general practical information for purchasing decisions. Confirm the requirements and commercial terms for your own project.
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