Comparing count proposals: eight criteria beyond the price
The cheapest proposal is not always the best value. How to judge a contractor by team experience, equipment, liability and the quality of the report.
You have three proposals for a stock count and the prices differ noticeably. The temptation to pick the cheapest is strong, but mistakes in a count are expensive: wrong balances, a second count, extra days and documents drawn up again. Below is how to compare the price properly and eight criteria to judge besides it.
First, put the prices on the same basis
Three proposals often sell different things: one quotes per item, another per day, a third per team. Ask each contractor to answer against one list: what the price includes, whether night and weekend work carries a surcharge, whether travel to a region is counted, whether a recount and report corrections cost extra, and whether equipment and labels are included. Until the list is the same, comparing figures means little, because what looks cheap often grows extra charges later.
Eight criteria beyond price
1. Team experience
Has the contractor worked in your industry: pharmacies (batches and expiry dates), building materials (heavy goods and open yards), manufacturing (raw materials and semi-finished goods)? Above all, which people will actually come to your site, and who is the team leader? If the proposal says "qualified specialists", ask for the actual line-up.
2. Equipment
Number and type of scanners, spare devices, a label printer, spare batteries, the way data is collected (paper sheets or a terminal). One broken device must not stop the count. One or two scanners are too few for a large warehouse, so ask whether the kit matches the volume.
3. Method and two-stage checking
What happens when a difference appears? The recount rules, spot checks and a second team's verification should be written down in advance. This is also where you learn how stock movement during the count is handled and who signs the sheets.
4. Capacity and timing
How many items are counted per day, how many people work, and does it fit your deadline? Night and weekend work, and how quickly the team can be enlarged, are judged here too. An unusually short promised time is a warning sign as well: it is often bought at the cost of quality.
5. Report quality
Ask for a sample report. Does it have a summary, an analysis of differences, a file for Excel or 1C and recommendations? A report with analysis saves the chief accountant's and the owner's time compared with a bare table. The delivery date for the report should be in the proposal.
6. Liability
What does the contract say in case of error or damage? Is a recount free if a mistake is found? Who answers if goods are damaged during the count? Go through these terms with a lawyer before signing.
7. Confidentiality and access security
A non-disclosure agreement (NDA), the list of team members, how they are admitted to the site, where data is kept and what happens to it when the work ends. Ask about phone photography rules as well.
8. Working arrangements
Is there one responsible manager, are daily progress reports given, will they visit the site beforehand, how fast do they answer questions? Asking previous clients for their view, with permission, also helps.
A scoring table
To move from impression to calculation, use a scoring system. For example, give price 30 points and the eight criteria 70 in total: experience 12, method 12, report 10, capacity 9, equipment 8, liability 8, confidentiality 6, working arrangements 5.
A hypothetical example: proposal A costs 18 million so'm, B 22 million, C 25 million. On price the cheapest gets the full 30 points and the others proportionally less: B 24.5, C 21.6. On the criteria A scores 36, B 55 and C 51. Totals: A 66, B 79.5, C 72.6. The cheapest proposal can end up last because its experience and control are weaker. Put a short note beside each score: you will need it later to explain to management why the decision went the way it did.
Conclusion
Price matters, but it is one criterion, not the first and only one. Inventory's proposal can be compared on this same table too: at the free assessment we evaluate the site, and the price, timeline and confidentiality terms are set out in the contract.