Understanding Tiered Quantity Pricing with Multiple Suppliers
In modern supply chains, flexibility at the item level is essential. One powerful approach is supporting tiered quantity pricing with multiple suppliers per item. This model allows businesses to source the same item from more than one supplier, each offering different prices based on order quantity.
At the item level, the system links a single product to multiple suppliers. Each supplier may define price tiers, where the unit cost decreases as the ordered quantity increases. For example, Supplier A may offer a lower price for bulk purchases, while Supplier B may be more competitive for smaller quantities or faster delivery.
This structure provides several advantages. It encourages competitive pricing, reduces dependency on a single supplier, and allows buyers to choose the best option based on cost, availability, lead time, or quality. Also, it supports smarter procurement decisions by aligning purchase quantities with the most cost-effective tier.
By enabling multiple suppliers and tier-based pricing at the item level, organizations gain greater control, resilience, and efficiency in their procurement process.
You can find out more about tier pricing on this link: https://www.erpag.com/news/tier-pricing
*What Is a Supplier SKU and Why It Matters:
Each supplier assigns a unique Supplier SKU to identify their products. While a business may use its own internal item code, suppliers often reference products using their own SKU’s, which can differ from one supplier to another.
Using Supplier SKU’s helps ensure accurate communication during purchasing, ordering, and invoicing. They allow systems to correctly match supplier-specific pricing, packaging, lead times, and quantity tiers to the right item. This is especially important when the company sources the same item from multiple suppliers.
By maintaining Supplier SKU’s, organizations reduce ordering errors, streamline procurement processes, and improve supplier collaboration. It creates clarity at the item level and supports more efficient supply chain operations.
How to update Supplier Price List
The supplier price list can be updated using one of the following methods:
- Manual entry
Prices are entered or adjusted manually by the user. - Auto (Supplier Invoice)
Prices are automatically updated based on the latest supplier invoice data. - Purchase price + Landed Cost
Prices are calculated using the purchase price plus applicable landed costs (e.g. freight, duties, taxes).
Read more about supplier price list update on this link: https://www.erpag.com/news/automating-supplier-price-list-updates
*The Repairs and Maintenance button at the supplier level:
You can find detailed instructions in this link :
Repair and Maintenance: Essential Tips for All – ERPAG
Stay tuned for more updates!
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