When creating scenarios, using the Type of Advanced Criteria allows you to customize a two-way split, or create a single source quota allocation by taking into account reference quota and price savings.
Example of setting an advanced criteria scenario:
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The new quota allocation will favor keeping allocation the same as the reference quota. Enter the minimum savings amount in the default currency in order to allow the new quota to be applied to a different supplier.
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To enable a quota split among two supplier sources, the Spend needs to be over the minimum amount set here (default currency) to allow for a quota split. If the minimum spend is not reached OR field C is not met, the quota will be applied to a single supplier.
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To enable splitting a quota a minimum quantity must be allocated. Enter a minimum quantity to enable splitting the quota between two suppliers.
If Either B or C is met, the quota can be split. If B or C is not met, the quota will be awarded to a single source.
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Enter the primary quota allocation percent (two numbers must add to 100) for awarding to the lowest unit cost, and then the second-lowest unit cost
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Enter the highest threshold percent increase needed between the lowest bid cost and second-lowest bid cost before allowing the secondary split to be implemented. Any percentage difference below E or equal to E will result in a split allocation of D
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Enter the secondary allowed quota allocation (two numbers must add to 100) for awarding to the lowest unit cost, then the second-lowest unit cost when the cost savings between the two lowest costs is bigger than E and less or equal to G values.
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When the percentage price difference between the first best unit cost bid and the second best unit cost bid is above G the quota allocation will be allocated 100% to the lowest unit cost item.
For the example in the screenshot above, in order to allocate away from the reference quota, a minimum savings of 5 must be found (A). Then the minimum spend must be at least 10 (B), OR the line must have at least 5 quantity units (C).
When these conditions are met, the new quota will be split 80/20 among the lowest and second-lowest unit cost (D) UNTIL a percentage difference of 5-10% is achieved between the lowest and second-lowest unit cost (E,G) - where a quota allocation of (F) will be applied. Once the percentage difference goes above 10% between the lowest and second-lowest unit cost, the new quota will be applied solely to the lowest cost.
Note: Percent increase between the best unit cost and the next best unit cost is:
Percent Increase = (secondBidUnitCost - bestBidUnitCost) / bestBidUnitCost * 100
Once a scenario is created, it can be either visualized (user’s view when selecting to be within the scenario) or applied (this saves the quota in the Quota column so it is viewable for all, outside a scenario visualization).