Report Guide
This guide explains what the report contains, how the numbers were calculated, and what to do with the findings.
Procurement Cost Analysis
Procurement Cost Analysis Guide
How to read your historical invoice analysis and priority actions report.
On this page
You submitted quotes from multiple suppliers for a specific raw material. This report normalizes those quotes: it converts them all to the same basis so you can compare them directly.
Quotes from different suppliers often use different freight terms, pack sizes, and payment structures. A quote of $1.74/lb that doesn't include freight isn't actually cheaper than a $1.82/lb quote that does. Once you add freight in, the picture changes. The report does that math for you.
How the columns and rows are organized
The comparison table has one column for your current supplier and one column for each quote you submitted (Q1, Q2, Q3...). Rows are grouped into four categories: Pricing, Logistics, Specifications, and Certifications.
| Field | Current | Q1 | Q2 | Q3 |
|---|---|---|---|---|
| Price / lb | $1.82 | $1.74 ↓ | $1.91 | $1.79 |
| Freight | Incl. | $0.06/lb | Incl. | $0.04/lb |
| Delivered / lb | $1.82 | $1.80 ↓ | $1.91 | $1.83 |
| Payment terms | Net 30 | Net 30 | Net 15 | Net 30 |
| Lead time | 2 wks | 3 wks | 1 wk | 2 wks |
| Fat content | 10/12% | 10/12% | 22/24% | 10/12% |
| Organic cert. | - | ✓ | - | - |
Example (not real data). ↓ marks the lowest delivered cost per pound.
Delivered cost per pound
This is the most important row: it adds the base price and any separate freight cost together so every quote is on the same footing.
Freight
Some quotes include freight in the price (“Incl.”); others quote it separately (e.g. “$0.06/lb”). When it's separate, it's added to the base price to get the delivered cost. If freight terms weren't stated on the quote, that will appear as a flag.
Hiding columns
Use the column toggle at the top of the table to hide quotes you want to set aside. This makes it easier to compare a shortlist side by side.
Appears when historical invoice data is available for this material
When your account has prior invoice history for the same material, the report shows a horizontal price band above the comparison table. The blue bar is your historical purchase price range: the low and high end of what you actually paid per pound over the past 12 months. Colored dots mark where each quote lands relative to that range.
What the positions mean
A dot inside the blue band means that quote is priced within your normal range. A dot to the left is below your historical low: worth verifying it's a real contract price. A dot to the right is above your historical high.
When it doesn't appear
The band only shows if a Procurement Cost Analysis has been run for this material. First-time engagements and materials with no prior history will not show the band.
The AI-generated analysis below the comparison table
Below the comparison table, the report includes a structured summary generated by the analysis pipeline. It has four parts:
Executive brief
A short paragraph and bullet points summarizing the key findings: which quotes are competitive, any notable spec gaps, and the overall picture. Factual only; no supplier recommendation.
Pricing vs. current
A compact table showing each quote's price and how it compares to your current supplier's price (e.g. “−4.2%”). Freight is factored in where stated. If a quote's price couldn't be directly compared (different specs, missing freight): that's noted in the Notes column.
Certification coverage
A matrix showing which certifications (Non-GMO, Kosher, Organic, etc.) each quote confirms, is missing, or didn't address. Required certifications are flagged in red; preferred in amber.
Blockers and info gaps
Per-quote cards listing blockers (things that prevent a fair comparison) and info gaps (missing data worth following up). This is the most actionable part of the summary: a blocker on a quote means the comparison may be unreliable until it's resolved.
Why specs matter before you compare prices
Price per pound only tells part of the story. If two suppliers are quoting different grades, fat contents, or moisture tolerances, you're not comparing the same product. The Specifications section of the table shows the key technical attributes from each supplier's documents.
If a spec cell shows “-”, it means the value wasn't found in the supplier's documents. That doesn't necessarily mean the supplier can't meet the spec: it may just not have been stated on the quote. It's worth confirming directly.
Observations that may affect your decision
Flags are observations generated during analysis: things that stand out or could affect the reliability of the comparison. They are not recommendations. They surface information; you decide what to do with it.
Examples
Spec mismatch
Two quotes aren't quoting to the same spec. The price comparison may be misleading: confirm the spec with the supplier before drawing conclusions.
Missing data
A quote is incomplete: typically missing freight terms, payment terms, or lead time. The analysis proceeds, but the gap is noted. Ask the supplier to clarify.
Pricing anomaly
One price is dramatically different from the others. This may indicate a data error, a spot price instead of a contract price, or a promotional rate that won't hold. Verify with the supplier.
Questions worth resolving before deciding
Open items are specific questions or gaps that came up during analysis. They appear as a checklist at the bottom of your report. The report is complete even when open items exist: they're there to flag things worth following up on, not to hold up delivery.
Examples
In most cases, open items are questions to take back to the supplier directly. A quick email or call is usually all it takes to resolve them.
Use the report as your starting point. A few things worth doing before making any supplier decision: