Outlier Analysis is a great feature within DNA to help identify any Bids which may be far above or below the “normal pricing”. Setting Outlier ranges and utilizing them will help define what and where our Outliers are within DNA.
In this article, we will cover:
- Benefits of using Outliers Analysis
- Prerequisite before using Outlier Analysis
- Setting up Outlier Ranges
- Utilizing Outliers
Benefits of using Outlier Analysis
Using Outlier Analysis will help you easily catch possible mistakes within the very large data set of your Suppliers’ Bids. Identifying these outliers will allow you to exclude any data that would throw off overall pricing numbers.
Example: if all of the Bids are .1202 cents and a Supplier had forgotten to include a decimal and entered 1202 as the bid price, this outlier will be flagged and removed from the bid competitiveness data (ie max, average).
Additionally, you will be able to notify your Suppliers of these outliers and request any necessary changes from them.
Before running your outlier analysis, it is recommended to add reference data in order to help identify outliers in DNA.
For more information on how to include reference data in DNA, please review our article here.
Setting up Outlier Ranges
Step 1: Navigate to your RFP Dashboard and click the “Analyze Bids” button in the Invite Suppliers section:
Step 2: From the action bar located near the top on the DNA page, click the "Analytics Toolbox" button:
Step 3: Click “Set Up” next to Outlier Analysis on the right-hand side panel:
Step 4: After clicking “Set Up”, you will be able to set the columns you want to compare and Outlier Ranges for your analysis.
Clicking "Update" will refresh the data and will tag the outliers within the dataset.
After setting Outlier ranges, navigate to the Item Details tab to see a summary of how many outliers were found per line item and where Outlier's are flagged for each Supplier's bid.
If you require any changes to be made for these outliers, you can request updates from your Suppliers to update their Bids. For more information on requesting updates, please see our article here.