How are savings calculated?

Modified on Mon, 26 Dec, 2022 at 12:08 PM

Savings on each enquiry on GoComet are calculated on 2 parameters. These parameters are:

Auction

For each enquiry when the bidding begins, the minimum quote among the first submissions of each vendor is the initial minimum quote. In the example Forwarder B has the initial minimum quote of 110 USD which was submitted at 2:00 PM. After the enquiry is closed the minimum quote is the final minimum quote. In the example Forwarder A has the final minimum quote of 90 USD.

The final auction savings will depend on the rank of the quote selected. The 2 cases that arise from this are:

L1 is confirmed or no quotes are confirmed: In this case if the quote of Forwarder A is selected (90 USD), the savings will be the difference in cost of the initial minimum quote and the final minimum quote.
```
Initial Minimum Quote = 110 USD (Forwarder B at 2:00 PM)
Final Minimum Quote = 90 USD (Forwarder A at Bid Close)
Auction Savings = 110 - 90 = 20 USD
```
Quote higher than L1 is confirmed:If the L3 quote of Forwarder B (95 USD) is selected, then the savings will be the difference between the final and initial quote of Forwarder B.
```
Initial Forwarder B quote = 110 USD
Final Forwarder B quote = 95 USD
Auction Savings = 110 - 95 = 15 USD
```

Net Landed

Quotes in a enquiry can be compared using their freight cost or the net landed (total) cost. GoComet helps you compare the net landed (total) cost instead of just freight.

In the above example Forwarder A has the L1 quote by total cost (90 USD) and Forwarder C has the minimum quote by freight (75 USD), but the Net Landed cost of Forwarder C is higher than Forwarder A. The net landed savings in this case will be:

Quote with minimum Net Landed Cost = 90 USD (Forwarder A)
Quote with minimum Freight Cost = 92 USD (Forwarder C)
Net Landed Savings = 92 - 90 = 2 USD

Total Savings

Total savings = Auction savings + Net Landed savings