How does the system select competitive suppliers?
When a BAFO round triggers in automatic mode, the system ranks suppliers using a four-level algorithm. Here's how it works with an example.
Example RFQ: Office Supplies
| Line Item | Qty | Alpha Co | Bravo Ltd | Charlie Inc | Delta Corp | Echo Supply |
|---|---|---|---|---|---|---|
| A4 Paper (ream) | 100 | $4.50 | $4.80 | $5.00 | $5.00 | — |
| Ballpoint Pens (box) | 50 | $8.00 | $7.20 | $7.50 | $7.50 | — |
| Staplers | 20 | $11.00 | $11.50 | $12.00 | — | $12.00 |
| Notebooks (pack) | 30 | $6.50 | $6.00 | $6.20 | $6.00 | $6.00 |
Underlined = lowest price for that line item. "—" = no quote submitted.
Count competitive wins
A supplier "wins" a line item when they have the lowest price. Ties count for both.
| Supplier | Wins |
|---|---|
| Alpha Co | 2 (Paper, Staplers) |
| Bravo Ltd | 2 (Pens, Notebooks) |
| Delta Corp | 1 (Notebooks, tied) |
| Echo Supply | 1 (Notebooks, tied) |
| Charlie Inc | 0 |
Alpha and Bravo are tied with 2 wins. Delta and Echo are tied with 1 win.
Compare value of winning items
Calculate the total value of each supplier's winning line items.
Alpha vs Bravo (2 wins each):
| Supplier | Calculation | Total |
|---|---|---|
| Alpha Co | (100 × $4.50) + (20 × $11.00) | $670 |
| Bravo Ltd | (50 × $7.20) + (30 × $6.00) | $540 |
Alpha wins on higher-value items, so Alpha Co ranks #1, Bravo Ltd ranks #2.
Delta vs Echo (1 win each):
| Supplier | Calculation | Total |
|---|---|---|
| Delta Corp | 30 × $6.00 | $180 |
| Echo Supply | 30 × $6.00 | $180 |
Both won the same item at the same price. Still tied! Move to the next level.
Check breadth of participation
If still tied, suppliers who quoted on more line items rank higher.
| Supplier | Items Quoted |
|---|---|
| Delta Corp | 3 (Paper, Pens, Notebooks) |
| Echo Supply | 2 (Staplers, Notebooks) |
Delta quoted on more items, so Delta Corp ranks #3, Echo Supply ranks #4.
Compare total quoted cost
As a final tiebreaker, lower total cost wins.
Charlie Inc has 0 wins but still quoted. They rank last (#5).
Final Ranking
| Rank | Supplier | Why |
|---|---|---|
| 1 | Alpha Co | Most wins (2), highest competitive value ($670) |
| 2 | Bravo Ltd | Most wins (2), lower competitive value ($540) |
| 3 | Delta Corp | 1 win, tied value, but quoted more items (3) |
| 4 | Echo Supply | 1 win, tied value, fewer items quoted (2) |
| 5 | Charlie Inc | No competitive wins |
If your template invites the top 3 suppliers, Alpha Co, Bravo Ltd, and Delta Corp receive BAFO invitations.