The purpose of Ref Pricing ("Reference") is to match lines with prices agreed to in advance with your suppliers through your previously uploaded Contract Pricing or Purchase Orders, as well as your Quote History. Therefore, when new prices are received, the different "Spend and Savings KPIs" can show you a comparison to previous negotiation cycles. The Ref Pricing functionality is only possible if you are an admin or have the “Create RFQ” permission checked.
Ref Pricing on Assignments
On the Assignments page, the “Ref. Price Source” column will identify where the “Contract Price” / "Purchase History Price" / "Quote History" for a line item in the RFQ had originated from. The “Ref. Price Source” column will be populated automatically when clicking on Populate Pricing to trigger the Ref. Pricing.
Clicking on Ref Pricing during RFQ: Assignments will populate the following columns (as available) from one or more of the Contract Pricing (CP), Purchase Order (PO) or Quote History (QH) file(s) as selected:
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Ref. Quota: "Quota" column from Contract Price / Purchase Order/ Quote History - used as one of allocation criteria for new quota to calculate savings. The "Quota" column when using Quote History from RFQ requires to be from a quote where a scenario has been applied.
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Ref. Unit Cost: "Unit Cost" from Contract Price / Purchase Order / Quote History (RFQ) - used to calculate spend.
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Ref. Unit Price Currency: "Unit Price Currency" from Contract Price / Purchase Order / Quote History (RFQ)- used to convert to a unit cost per the default currency setting for Spend & Savings calculations.
- Ref Actual Spend: "Unit Cost * (Ref. Quota/100) * Qty.
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Ref. Markup: "Markup" from Contract Price / Purchase Order / Quote History (RFQ).
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Markup: "Markup" from Contract Price / Purchase Order / Quote History (RFQ).
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When no price is found for a line and if Supplier = Vendor then, populate "Markup" with 1.
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If Supplier is not the same as the Vendor, then it'll leave it blank.
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Ref. Vendor: Vendor from Contract Price / Purchase Order / Quote History (RFQ).
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Vendor: Vendor from Contract Price / Purchase Order / Quote History (RFQ). When no price is found for a line, Vendor is populated the same as Supplier, ensuring each line will have a Vendor.
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Ref. Supplier: Supplier from Contract Price / Purchase Order / Quote History (RFQ).
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Ref. Qty: "Qty" from Contract Price / Purchase Order / Quote History (RFQ).
Reference Pricing Information
After you click on Reference Pricing within Assignments you'll need to choose which files that you'll be referencing. Click on the radio button to select the Pricing Type of either Contract Pricing, Purchase Orders or Quote History (RFQs) as your source files(s).
You can then select the specific files that you want to reference or you can use the Select All to easily check all files listed. A maximum of 10 RFQs can be selected from within the list. If you have
selected more, then you will be provided an error message.
Then select if it should Apply to: Only Items without Ref. Price, Only Selected Items, or All Items.
Based on the “Match By” selection below (to one or multiple), a line item will populate with the identified reference information (Contract Price/Purchase Order) when it matches across all selected attributes.
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IPN/CPN
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MPN
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Manufacturer
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Supplier
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Plant
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Subcontractor
- Qty
As a note, when QTY is selected and multiple matches are found, the system looks for a QTY match first and then selects by the most recent purchase date. If the QTY is not selected and multiple matches are found, the price with the most recent purchase date will be selected.
When using "Purchase Orders" for your Reference Pricing, then it will use the file's Quota for the RFQ. However, if PO Data is missing the Quota, there is an option to automatically assign quotas. This way any lines with savings calculations dependent on the Ref. Quota can be computed. Check the box in order to Apply 100% Ref. Quota to group.
Then Supplyframe will assign 100% Ref. Quota to lines that have a Ref. Price, but are missing a Ref. Quota. This will be done at the group level, which consists of its IPN, Plant and Subcontractor. Each unique group will have one line in the group assigned 100% Ref. Quota. If multiple Ref. Price exists for multiple lines in a group of IPN, Plant and Subcontractor, then the 100% Ref. Quota will be applied to the lowest price. When all have the same price, then any of them will be selected. However, if the Ref. Quota exists on a line, it will not be overwritten for the group.
Contract Pricing Logic
If two matches are found when it’s applying the Ref Pricing, then the Contract Price file with the most recent “Start Date” will be selected for a line item. In Contract Pricing, the most recent “Contract Price ID” is used. The “Expire Date” is not taken into consideration.
Purchase Order Logic
If two matches are found when it’s applying the Ref Pricing, then the Purchase Order file with the most recent “Purchase Date” will be selected for a line item. In Purchase Orders Pricing, the most recent “Purchase Order Date” is used. The “Expire Date” is not taken into consideration.
Ref Pricing on Responses
When working on your RFQ's Responses page, if the Ref. Pricing information is used on the Assignments page, then clicking Ref Pricing on the Responses page will reflect this information here as well. This will pull the data to reflect the information from the Assignments tab onto Responses tab.
Refreshing is recommended whenever Ref Pricing has been updated on Assignments in order to see these changes reflected on Responses.
Ref Pricing Visibility
In order for "Ref Pricing" to be used in an RFQ, at least one part in that RFQ must be associated with a Template, and that Template must have at least one of the system Ref. columns configured as Internal Rule in RFQ | Viewable = 'YES'. This is configurable by your admins. More information for admins on templates can be found within the Administrative section of the knowledge base.
Ref Pricing Icon Disabled
If the Ref Pricing icon is disabled, you will need to check and configure the selected Part Category and Demand Templates included in the Ref. fields, which are viewable in Internal Rule in RFQ.
The Ref Pricing Icon also requires an IPN/CPN column.