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When the line is down, the lowest quote is rarely the cheapest

On a stopped line, the price of the part is the smallest number in play. Why we compare urgent quotes on time to fitted part first, and price second.
Author
Sparehawk
Reading time
3 min read
Published
  • RFQs
  • Lead time
  • Incoterms

When a machine is stopped, compare quotes on the time until the part is fitted, not on price alone. Stock on the shelf, dispatch date, delivery terms, condition and warranty decide when the line runs again. Choose the fastest quote whose condition and warranty you would accept anyway, then buy the next spare on price once the line is running.

When a machine stops and several quotes come back for the part that stopped it, the instinct is to sort them by price. We think that is the wrong first column. On a stopped line the price of the part is usually the smallest number in play, and the time until the machine runs again is the largest.

Count the hours, not only the euros

A quote is a price, a lead time, a condition, a warranty and a delivery term. Two quotes that differ by a day on paper can differ by a week in practice, once transport, customs and a missing certificate are counted. Before comparing prices, write down what an hour of standstill costs on that line. Then every day of difference in lead time has a price of its own, and the comparison becomes honest.

What the cheap quote often leaves out

  • Delivery terms. A quote ex works leaves transport, export clearance and the risk in transit to you. A DAP quote includes delivery to your door, but not import duties. The guide to Incoterms shows what each term moves to whom.
  • Condition. Used, refurbished and new surplus are different products at different prices. Compare like with like.
  • Warranty. Its length, and whether it starts on dispatch or on installation.
  • Lead time. Working days or calendar days, counted from your order or from payment.
  • Stock or order. “Available” can mean on the shelf or orderable from the manufacturer. The guide to lead time and stock explains how to tell them apart.

Our rule for a stopped line

Take the quote that gets a working part into the machine soonest, among those whose condition and warranty you would accept anyway. Then, once the line runs, buy the second spare on price, with time to compare. The emergency purchase and the purchase for the shelf are two decisions, and only the second should be won by the lowest price.

Ask what the quote does not say

Before accepting, ask the supplier two things in writing: is the part on the shelf today, and when will it leave? A specific answer is worth more than a lower figure. On Sparehawk, quotes come back into one comparison with the price per line, lead time, condition, warranty and terms, so the same questions apply to every quote. When you accept one, your contact details go to that supplier only.

Prepare before the next stop

The decision is quicker when the work is done in advance: a list of the parts that stop each line, with what an hour of standstill costs there. The guide to a spare parts list shows how to build one, and the list goes into one request for quotes for a whole bill of materials when you restock.

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Frequently asked questions

1.1

How do I compare quotes for an urgent spare part?

Put the time until the part is fitted first: confirmed stock, dispatch date, delivery terms and customs. Then compare condition, warranty and price among the quotes that meet your deadline.
1.2

What does an ex works quote leave to the buyer?

Everything after the supplier’s door: transport, export clearance, insurance and the risk in transit, plus import duties. Check the Incoterm on each quote before you compare prices.
1.3

Is a lower price worth a longer lead time?

On a stopped line, rarely. Multiply the extra days by what the standstill costs per day and compare that with the saving.
1.4

Should I buy the cheapest spare once the line is running?

For a spare that goes on the shelf, price matters more, because there is time to compare condition, warranty and history properly.
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