Configure Price/Cost Scoring

  • Updated

This article provides steps on how to configure Price/Cost Scoring within the evaluation criteria to ensure consistency and control over how supplier costs are evaluated. Use this feature when setting up the evaluation criteria for a sourcing project.

Prerequisites

  • Audience: Any user with permissions to set up an evaluation record.

  • Roles: User must have the necessary permissions to edit the Evaluation Criteria section of the relevant module.

  • Data: An evaluation must be in progress and the Evaluation Criteria step must be accessible.

Steps

Follow these steps to configure the Price/Cost scoring:

  1. Navigate to the Criteria step of your evaluation. Cost is always the first criterion listed.

  2. Review the options to configure the cost criterion. You can configure Weighting, Hide cost, and Scoring method.

    • Weighting: Enter the weight you want to assign to cost. The lowest cost will automatically receive the highest score based on the calculation. If cost should not be weighted, set this to 0. Note: If your organisation uses Cost Effective Ratio, you cannot assign a weighting.

    • Hide cost: Tick this box to hide the supplier's submitted cost from your evaluators.

    • Scoring method: Tick this to set up your own criterion for cost, rather than having it calculated automatically by the default formula.

  3. To use a custom, manual scoring method:

    • Tick the Scoring method box.

    • Leave Hide pricing unticked.

    • Define a custom selection of questions with custom weighting for your evaluators to score the price manually.

Results / Validation

You can confirm the configuration worked by checking the following:

  • The Evaluation Criteria section now displays the configured weighting for cost (unless using Cost Effective Ratio).

  • If you enabled a custom scoring method, you will see the additional criteria/questions that the evaluators will use to score cost.

  • If Hide cost was selected, the cost submitted by the suppliers is no longer visible to your evaluators.

What's Next / Related

  • Refer to the Evaluation Criteria article to learn more about setting up all other criteria questions.

Limits & Notes

  • Formula: If the custom scoring method is not ticked, the default formula to calculate cost is ([Lowest offer price] * 100 / [This offer price]).

  • Cost Effective Ratio: If this is enabled for your organisation, you will not be able to assign a weighting to cost.

  • If you opt to apply your own scoring method, Hide pricing should be left unticked.