Plate IQ's Contract Pricing is a custom tool and report that allows you to setup a price threshold for items. It uses your invoice data to alert you of any changes in vendor pricing based on your threshold. Knowing how Contract Pricing works will help you clearly see price changes and control your costs or issues with your vendor.
In this article:
How can Contract Prices be used?
Contract Pricing is ability to define and create a contract price based on company, vendor, and item. If the contract price is broken, the invoice will be flagged in Needs Attention and an email alert sent.
Contract Pricing appears under the Insights section of Plate IQ. From the top left, navigate to the app selector and choose Insights.
Step 1 - Add a Contract Price
Step 2 - Setup your item's contract price by location, vendor, desired price and price change threshold. Items can be defined by name, SKU, or both.
Step 3 - You can view all of the Contract Prices you create in the list view.
Contract Prices shows your existing Contract Prices in a list view in the order that they were created.
To change how the report is organized, click a column header. To switch from an ascending sort to a descending sort (or vice versa), click the header a second time.
Contract Prices are used to control costs. For example, after reviewing items with different purchase prices in Group Savings, you'll likely want to contact your vendor to negotiate better, more consistent prices. But how do you know your vendor is honoring those prices?
Take this Flour example. A Contract Price was set for $47, but the vendor increased the price by ~1%. With Contract Prices, you'll be alerted via email about the breach and the invoice will appear in Needs Attention.
Contract Pricing focuses on setting up a item price threshold, tracking vendor prices, and bringing relevant price changes to your attention. Examples of questions you can answer using Contract Pricing include:
- Are my prices fluctuating?
- How can I ensure my Contract Prices are being honored?