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Free Sourcing Tool

RFQ Comparison Tool for Food Brands

Evaluate multiple ingredient or packaging supplier quotes side-by-side to understand the actual cost of goods delivered to your production facility. This ensures you select the most cost-effective option beyond just the unit price.

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How This Calculator Works

The tool calculates the total landed cost per unit by adding the ex-works price, freight charges, customs duties, and any applicable tariffs. It also adjusts for payment terms, converting them to a standardized cash basis to allow for direct comparison across different supplier offers.

When to Use This Tool

A CPG brand is sourcing a new specialty ingredient for an upcoming product launch and has received quotes from three international suppliers.
The tool reveals that Supplier B, despite having a slightly higher ex-works price, offers the lowest adjusted landed cost due to more favorable freight rates and longer payment terms, making it the most cost-effective choice.
An existing CPG product needs new packaging materials, and the operations team is comparing a domestic supplier with an overseas option.
The tool highlights that the overseas supplier's lower unit price is offset by significant customs duties and higher freight costs, making the domestic supplier the better financial option once all factors are considered.

Common Questions

Why do I need to include payment terms in the comparison?
Payment terms impact your working capital. Longer payment terms can offer a cash flow advantage, while shorter terms might incur an implicit cost if you need to finance inventory sooner. This tool quantifies that difference to provide a true cost.
What if I don't know the exact freight cost per unit?
You can estimate it by dividing the total freight quote by the number of units in the shipment. For more accuracy, request a DDP (Delivered Duty Paid) quote from your supplier or a separate freight forwarder quote for your specific volume.
Does this tool account for quality differences between suppliers?
No, this tool focuses purely on financial cost comparison. Quality, reliability, lead times, and other non-financial factors should be assessed separately as part of your overall supplier selection process.

Related Tools

Ingredient Cost Calculator Co Packer Cost Analyzer Inventory Turnover Calculator

Related Articles

Unit Economics for Food Brands → The 12 KPIs Every Food Brand Should Track → Food Brand Product Launch Checklist →

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