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Scoring price and quality

Scoring price and quality

Sourcing

This article only applies to Sourcing

NOTE!: Automatic calculation of the comparison is only possible if "Lowest or highest price, scoring" is selected as the selection criterion in the Evaluation criteria definition section.

 

In Mercell Sourcing, maximum price and/or quality points can be set for the total price or by sub-area. In addition, scoring weight values ​​can be set for the objects to be purchased (related to setting price points) and criteria-specific points (see instructions for scoring criteria).

The price points are automatically formed based on the bidder's total price in relation to the other received answers (price comparison uses the ratio to the lowest/highest or a linear calculation method). The maximum quality points are assigned to the bidder who has received the largest number of criterion-specific points (the maximum quality points are compared using the formula for the larger ratio).

 

Price scoring

 

When "Overall economic affordability, scoring (lowest price)" is selected as the selection criterion, points can be defined for the total price of the group or the price of the sub-area, which are distributed according to the selected formula (ratio to the smallest or ratio to the smallest, linear). If "Overall economic affordability, scoring (highest price)" is selected as the selection criterion, points can be defined for the total price of the group or the price of the sub-area, which are distributed according to the selected formula (ratio to the largest or ratio to the largest, linear). 

 

Price points calculation method 

 

a) Selection criterion "Cheapest price, scoring":

There are two ways to choose how the system distributes the price points on the comparison table 

  1. Ratio to the smallest 

    • Formula: (minimum given/offered value) x maximum points

  2. The relationship is linear to the smallest 

    • Formula: (1- I(offered value - lowest given value)I / I(highest given value - lowest given value)I) * maximum points

 

The difference in calculation methods can best be seen in the comparison table:

FIGURE: Ratio to the lowest and ratio to the lowest end, linear difference in the way price points are calculated on the comparison table

 

b) Selection criterion "Highest price, scoring":

There are two ways to choose how the system distributes the price points on the comparison table 

  1. Ratio to the largest

    • Formula: (offered value/highest given) x maximum points

  2. The relationship to the largest is linear 

    • Formula: ((offered value - lowest given value) / (highest given value - lowest given value)) * maximum points

 

Maximum price points

The definition of price points differs slightly if the price is set for the total price or the purchase is divided into parts.  See also qualification criteria.

 

Definition of price points if the sourcing is not divided into parts

The entire purchase (all defined groups) is given one common total price maximum points by entering the points in the "Maximum points of total price" field. 

  • In the comparison table, the system calculates the price points based on the selected price calculation formula, adding up the total prices of all items in the groups (unit price x quantity to be purchased) 

    • The bidder who offered the lowest total price gets the maximum points for the total price    

    • The points of other bidders are distributed according to the points calculation formula for the selected price. 

 

FIGURE: The definition of price points for a procurement that is not divided into parts takes place at the top of the procurement object criteria section. The example shows a procurement with two groups. The maximum points for the total price of the groups is defined as 80 points. 

 

Definition of price points if the purchase is divided into parts (old selection criteria by target group)

  • Each sub-area is given its own maximum price points by entering the points in the section "Maximum score for price" inside the sub-area

  • In the comparison table, the system calculates the price points of each sub-area based on the individually selected price calculation formula, adding up all the total prices of the items in the sub-area (unit price * quantity to be purchased)

    • The bidder who offered the lowest price for the sub-area receives the maximum points for the price of the sub-area

    • The points of other bidders are distributed according to the points calculation formula for the selected price  

FIGURE: The determination of price points for procurement, which is divided into parts, takes place within each part. In the example, the maximum points for the price of the tractors sub-area is defined as 80.

 

The object's weight value can be determined from the maximum points of the price

  • If it is desired that the price point weighting of one procurement item is greater than another, the weighting can be defined for the items. A percentage weight of the maximum points of the price can be set for the item. 

  • Select "Yes" under "Weight of the item in the maximum price score can be determined”

    • Write a percentage weight for each item

    • NOTE! The total sum of the weight values ​​must be 100%

IMAGE: Weight of the object from the maximum points of the price. In the example, the weight of the van's maximum price points is higher (60%) than the car's (40%)

 

 

Quality scoring

In Mercell Sourcing, the comparison can be made not only by the price and the points obtained based on it, but also by means of qualitative criteria and the quality points given to them. Qualitative criteria and their scoring are defined in the system on the "Sourcing items and criteria" tab. 

  • Qualitative criterion refers to a criterion to which a certain weight has been assigned, which affects the comparison in addition to the price

    • The criterion is formed into a qualitative criterion that affects the comparison by setting a point weight value for it in the "max. points of quality" row

  • The supplier-specific scoring of the criterion can be set to be calculated automatically by the system, or the evaluation of the criterion can be left to the procurement unit during the comparison phase of the answers

    • If the automatic point calculation method is used, the calculation logic is set for the criterion under the "point calculation method" column

    • The calculation logics used depend on the type of criteria used

    • If the point evaluation of the criterion is to be carried out by the procurement unit in the comparison phase of the answers, the point calculation method for the criterion is left as "manual point input"

 

Determining how to calculate total points for qualitative criteria

 

The provider-specific Total Points of the qualitative criteria can be set to be calculated in two ways:

  1. Criterion-specific quality points

    • Sum of criterion-specific quality points

    • If The "Maximum quality points" field is left empty, bidders receive their quality points in absolute terms, as they are specified for the criteria rows.

    • The total quality points received by the bidders are not compared to the total quality points of other bidders. The provider's total quality points are determined according to the set criteria-specific calculation methods

  2. Maximum points for quality

    • If points are specified in the "Maximum quality points" field, the system performs a scaling of the quality points, whereby the bidder with the most criterion-specific quality points receives the maximum points assigned to the quality.

      • When using the scaling of quality points, the total quality points received by the bidders are related to the highest total quality score of the comparison and scaled to the set maximum quality score

Example 1: Calculation of total quality points, when you want to use the sum of criteria-specific quality points (so-called absolute scoring)

View on the procurement object's criteria tab:

FIGURE: An example of defining the criteria for the procurement object, where the quality points are made up of criterion-specific quality points. 

 

View with comparison table:

FIGURE: An example of a comparison table where the quality points are made up of criterion-specific quality points. 

 

Example 2: Calculating total quality points when you want to use quality point scaling

 

View on the criteria tab of the procurement object:

FIGURE: An example of the definition of criteria for the procurement object, which uses the scaling of quality points. 

 

View with comparison table:

IMAGE: An example of a comparison table where the quality points have been scaled using quality points. NOTE The prices of the examples are the same as in example one, but the ranking changes with intermediate scaling.  

 

Defining the order of importance in the "Overall economic affordability, order of importance" selection criteria

 

If you don't want to use scoring in the comparison, you can set the selection criteria with the "Overall economic affordability, order of importance" option.

  • At the end of the procurement object criteria page is the section "Priority of selection" 

    • Add a priority order line under "Add order information" 

      • Change the order of priority lines by dragging the lines to the desired order (Drag&Drop)

      • Delete a row from the checkmark icon  

IMAGE: Defining the order of priority of the selection in the criteria section of the procurement target.