An award scenario is a modeled allocation of sourcing demand among one or more suppliers for comparison before a final award decision. A scenario may reflect price, capacity, technical fit, risk, location, policy, or business constraints. It is a decision aid rather than the award itself; the authorized team reviews rationale and evidence before approval.
In plain English
It is one possible way to divide a sourcing award among suppliers.
Illustrative example
At Northstar Industrial Systems, procurement compares a lowest-cost scenario with a dual-source scenario that reduces concentration risk before requesting approval.
- Related terms
- Bid comparison; Sourcing event; Supplier evaluation; Total cost of ownership
- Lifecycle stages
- Source; Award; Approve
- Stakeholders
- Procurement; Operations; Finance; Approver