Normalize the ingredient comparison
Before comparing quotes, align EPA and DHA targets, total omega-3 if relevant, molecular form, assay basis, acceptance limits, pack size and quantity. Confirm whether a price is based on a named specification or a supplier’s “typical” profile.
Where the profiles differ, calculate the ingredient mass required to reach the same EPA/DHA serving target. Keep any assumptions—such as process yield or overage—visible and have the formulator confirm them.
Build the landed-cost view
For a defined shipment, add the ingredient price to packaging, inland transport, freight, insurance, duties and taxes where applicable, customs brokerage, inspection or testing, and receiving costs. Clarify the Incoterm and named place because it determines which cost and responsibility sits with each party.
Do not add a generic risk premium without evidence. Instead, list possible costs separately—such as testing, document correction, temperature-controlled handling or delay—and estimate them using the buyer’s actual route and process.
Compare cost per usable dose
For formulation decisions, divide the total ingredient cost by the number of compliant doses the batch can make under the agreed formula and yield assumptions. This is more informative when concentration, form or fill mass differs. Check with the manufacturing team that the candidate can run at the assumed fill weight and capsule format.
Include quality and continuity criteria
Two offers at the same delivered price may not have the same scope. Review batch-specific COA coverage, document availability, packaging, storage conditions, lead-time assumptions and the process for handling nonconformities. These are evaluation criteria; their financial impact should be estimated from the project’s own data rather than treated as a universal value.
Fish oil landed-cost checklist
- Same profile, form, assay basis and quality limits.
- Same order quantity, pack format and Incoterm basis.
- Freight, insurance, duties and brokerage included or clearly excluded.
- Testing, document review, storage and receiving costs identified.
- Cost per usable EPA/DHA dose calculated from agreed formula assumptions.
- Lead time, batch release and exception handling compared separately.
Request comparable offers
Send suppliers one specification and ask each to quote the same volume, pack size, destination, delivery term, required document set and schedule. Request an itemized statement of assumptions and exclusions. That turns a set of headline prices into a decision the purchasing, QA and formulation teams can review together.