How can I create an award simulation? Follow
Smart RFX Simulation provides "What If" scenario building for Global Commodity Managers (GCMs) to understand spend and savings using their own preferences. Simulation is only available in Commodity Scope in the LevaData Platform. By default, Smart RFX creates two Simulations, and both are available in the Simulation tab from the drop-down menu in the top right.
- System: Same Splits as in Manage Responses view
- Optimal: 100% allocated to Lowest Cost.
Commodity Managers can modify the default Simulations or create additional simulations by choosing their options, clicking save as, and naming their simulation. This simulation will then be available in the dropdown menu.
Best Practices
- Ensure all suppliers have responded with quotes before working on Simulations.
- At this stage you should decide on which quotes you are ACCEPTING for consideration in the simulations and for AWARD.
- You do have an option to "update with latest costs" if a supplier responds after you create a simulation(s).
Simulation Creation
From the Smart RFX module, click into the name of the RFQ you are going to conduct the simulation in, then navigate from the Details tab over to the Simulation tab.
As noted above, two default simulations exist; however, users have options from the preferences list offered on this Simulation tab:
| Preference | Description |
|---|---|
| Incumbent | Supplier share will be allocated based on historical preference (e.g. if supplier 1 received 80% allocation and supplier 2 received 20% allocation on the previous award this distribution will persist) |
| Lowest Cost | Supplier share will be allocated 100% to the single supplier offering the lowest cost. |
| Equal Splits | Supplier share will be allocated equally between suppliers (e.g. if four suppliers are selected, each will receive 25% share) |
| Two Supplier Preference | Based on lowest cost and cost variance between suppliers, the share will be allocated to at least two suppliers:
|
| Lowest Cost + Incumbent | Supplier share will be allocated based on a combination of the historic award and the lowest cost. (e.g. there are three suppliers, Suppliers 1 and 2 tie on lowest cost, but Supplier 2 was awarded 100% in the previous quarter, then Supplier 2 will receive 100% of this allocation as well). |
Single-Source vs. Multi-Source Simulations
- Applying preferences to Single-Sourced Parts in Simulation will yield no change as that part has only one source with full 100% allocation.
- Applying preferences to Multi-Sourced Parts in Simulations will be based on MPN Cost split allocation. For example, Multi-Sourced CPN has different MPN Costs and when trying to apply lowest cost preference then the Lowest MPN Cost for that CPN will get 100% Split Allocation, and the remainder(s) will get 0% Split Allocation.
Editing and Saving
If the user would like to create their own simulation(s), you can modify the options in the simulation and "save as" then give your simulation a name. Regardless, make sure you save frequently if you are working on multiple changes.
When a Simulation is created, the supplier response data is implemented into the simulation. During the creation of a simulation, you can modify the award preferences individually for each line item.
If a Supplier responded after a Simulation is updated/created, the "UPDATED WITH LATEST COST" button will sync the latest Supplier Quote data into Simulation.
Reminder: Be sure to save your work.
Once you have saved your Simulation and named it, this simulation for awarding will be available to you when you actually want to complete awarding the RFQ on the Award tab. You can create as many simulations as you would like to try and produce the results you are looking for.
- From the simulations drop down menu, select one to view
- Spend and savings will be displayed for the simulation selected.
- Select multiple simulations - either your simulations and/or the default simulations to compare results.
Splits
- Splits can be directly updated in the Manage Response Screen.
- Splits can also be updated in the Simulation & Award screen. You will find Excel upload and download options - you can download and change the splits in a large RFQ and then upload back into the platform.
- Any time Splits are updated in Smart RFX, the system validates if the total Split allocation is equal to 100%
- Split allocation cannot be a decimal value. It has to be a positive integer value.
Note: Default and Optimal Simulation splits are not editable, only user created simulation splits are editable.
Reviewing Results of a Simulation or Comparison
- Metrics:
- Spend
- Total Items / Split Allocated
- Total Suppliers / Split Allocated to Suppliers
- Customer Part Numbers (CPNs) Allocated to 1 Supplier, 2 Suppliers, and 2+ Suppliers.
- Spend and Savings: Compared for simulations
- Grid: Compares the User Splits, Spend, and Savings across selected Simulations by each record
- Update Simulations: Edit the Splits, simulate and update the changes to the simulation.
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