Scenarios help you to evaluate responses based on different scenarios of cost impact. You can create an awarding visual to help evaluate your RFQ responses based on different criteria.
Creating a Scenario
You can create a scenario via the Scenarios tab, which is found on your Responses page. Click on +Create Scenario to get started. You’ll type in the Name of your scenario and can include an optional Description.
There are three Scenario Types that you can create:
- Best Price & LT
- Ref. Quota
- Advanced Criteria
There’s optional filters available to help you avoid awarding quota to non-preferred parts:
-
Exclude NC/NR: When checked, items that are Non-Cancelable Non-Returnable will NOT be given allocation.
-
Exclude Obsoletes: When checked, then the parts flagged as Obsolete will NOT be given allocation.
-
Lead time of __ week(s) or less: When checked and populated, then parts with lead times greater than the indicated amount will NOT be given allocation.
Scenario: Best Price & LT
The Best Price & LT Scenario Type will grant 100% of the quota for a part to the lowest supplier offer, and will break any ties by the lowest lead time. You can define what “Best Price” is based on by selecting the appropriate column from the "Based On" drop-down. Savings and spend are calculated with the Unit Cost though, regardless of the criteria selected for the Best Price.
Columns can be added to the "Based On" drop-down by identifying them as "Available in Scenarios" when creating custom user-defined columns in System Template or setting rules for a specific system standard column. This is available to you as an admin or with appropriate permissions.
You can define that a column is “Available in Scenarios” for:
- Quote Price (Price 1)
- Lead Time (WKS)
- User defined columns
IPNs in an RFQ have to be matched to a Part Category/Demand Template in order to have these options available in Scenarios as the “Available in Scenario” identifier is defined in that template. Checking "Available in Scenario" also allows a column to be used as a selection for the Spend and Savings "Set Criteria" functionality.
Scenario: Ref. Quota
Using the Scenario Type option of Ref. Quota will allocate a quota identical to the reference quota, regardless of the current unit cost.
The "Ref. Quota" can only be sourced from Contract Pricing or manually inputted. The "Ref. Quota" is populated by Contract Pricing through the "Ref. Pricing" button in the RFQ. Therefore, the "Ref. Quota" Scenario does NOT automatically populate the "Ref Quota" from Contract Pricing into an RFQ.
Scenario: Advanced Criteria
Using the Scenario Type of Advanced Criteria allows you to customize a scenario with a two-way split, or create a single source quota allocation by taking into account the referenced quota and the price savings. This helps you set parameters with a more customized focus, which includes elements of Ref Pricing.
Examples of setting Advanced Criteria scenarios:
- 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.
- 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.
- To enable splitting a quota a minimum quantity must be allocated. Enter a minimum quantity to enable splitting the quota between two suppliers.
You can check the box if you want it to "Accept quota split among the same supplier".
Scenario: Visualizing
Once a scenario is created, it can be either Visualized (your 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 of a scenario visualization).
Visualizing a scenario is possible by clicking on visualize icon to the right side of the scenario's name. It will open the window asking you to confirm that you want to run it by clicking on Visualize Scenario. This will take you back to the Responses tab to see what the quotas would look like with this scenario.
When a scenario is visualized, then a filter is applied to your Responses based on that scenario’s criteria.
Now you see a view of quotas displayed in the "Quota" column per the scenario’s specifications. When a "Quota" is edited inside a visualization, this will be recorded for the particular visualization. However, once selecting to “refresh” a visualization, then it will run the scenario again and thus overwriting any manual edits.
During a a scenario visualization, the errors are displayed based on the applied quotas.
Scenario: Apply
Applying a scenario is possible through the apply icon button to the far right. You can select to notify the people identified on a line as the “Buyers” and “Assignees” via email.
After a scenario has been applied, then the fixed scenario’s Quota is now visible to all without the need to visualize within a specific scenario.