# How Do You Factor in Shipping and Logistics Costs in an RFQ Evaluation? ▴ Question

**Published:** 2025-08-07
**Categories:** Question

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![Sleek, modular infrastructure for institutional digital asset derivatives trading. Its intersecting elements symbolize integrated RFQ protocols, facilitating high-fidelity execution and precise price discovery across complex multi-leg spreads](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-system-optimizing-high-fidelity-block-trade-liquidity-and-multi-leg-spread-precision.jpg)

![Diagonal composition of sleek metallic infrastructure with a bright green data stream alongside a multi-toned teal geometric block. This visualizes High-Fidelity Execution for Digital Asset Derivatives, facilitating RFQ Price Discovery within deep Liquidity Pools, critical for institutional Block Trades and Multi-Leg Spreads on a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-digital-asset-derivatives-rfq-execution-optimization-leveraging-proprietary-institutional-prime-os-for-optimal-price-discovery-and-latency-reduction.jpg)

## Concept

Integrating shipping and logistics costs into a Request for Quote (RFQ) evaluation moves the analysis from a simple price comparison to a comprehensive assessment of [total cost](https://prime.greeks.live/area/total-cost/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). This process requires a systemic view, treating the RFQ as more than a procurement tool and instead as a critical input for modeling the entire [supply chain](https://prime.greeks.live/question/can-the-principles-of-a-hybrid-netting-system-be-applied-to-supply-chain-finance-programs/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)’s financial and operational health. The objective is to quantify not just the explicit freight rates but also the implicit costs and risks associated with each potential logistics partner. A successful evaluation framework reveals the full economic impact of a logistics decision, ensuring the selected bid provides the greatest value, stability, and efficiency for the organization’s specific operational context.

At its core, this evaluation methodology is about creating a true “like-for-like” comparison that extends beyond the base rate per lane. Many organizations face challenges with ineffective RFQ practices, such as unclear requirements or a failure to quantify the [Total Cost of Ownership](https://prime.greeks.live/area/total-cost-of-ownership/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (TCO), leading to budget overruns and poor vendor performance. A sophisticated approach demands a detailed breakdown of all potential cost components, from fuel surcharges and accessorial fees to the financial implications of transit times and service reliability.

This requires a shift in mindset, where the procurement function operates as an integrated part of a larger strategic operation, deeply connected with finance, operations, and risk management. The initial RFQ document becomes the foundation for this analysis, designed to elicit precise, standardized data from suppliers to fuel a rigorous evaluation model.

> A robust RFQ evaluation process transforms procurement from a cost-centric function into a strategic value-creation engine for the entire supply chain.

The process begins with the design of the RFQ itself. It must be constructed to compel potential suppliers to provide data in a structured and uniform format. This foundational step is critical for the subsequent analysis. Vague proposals or a narrow focus on a single category are common pitfalls that undermine the effectiveness of the entire process.

By standardizing the input, the evaluation team can build a model that accurately reflects the nuances of each bid. This model must account for the variability in how different carriers structure their pricing and service offerings, translating disparate data points into a cohesive financial picture. The ultimate goal is to create a system that allows for objective, data-driven decisions, moving beyond intuition and establishing a partnership based on a mutual commitment to efficiency and cost transparency.

![A central dark nexus with intersecting data conduits and swirling translucent elements depicts a sophisticated RFQ protocol's intelligence layer. This visualizes dynamic market microstructure, precise price discovery, and high-fidelity execution for institutional digital asset derivatives, optimizing capital efficiency and mitigating counterparty risk](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-engine-visualizing-high-fidelity-execution-and-market-microstructure-dynamics.jpg)

![An intricate, transparent digital asset derivatives engine visualizes market microstructure and liquidity pool dynamics. Its precise components signify high-fidelity execution via FIX Protocol, facilitating RFQ protocols for block trade and multi-leg spread strategies within an institutional-grade Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-digital-asset-derivatives-rfq-liquidity-ecosystem.jpg)

## Strategy

Developing a strategy for incorporating logistics costs into an [RFQ evaluation](https://prime.greeks.live/area/rfq-evaluation/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) centers on the principle of Total Cost of Ownership (TCO), or [Landed Cost](https://prime.greeks.live/area/landed-cost/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). This framework expands the analysis beyond the carrier’s quoted price to include all expenses incurred until the goods arrive at their final destination. A successful strategy requires a multi-departmental approach, ensuring that data collection is thorough and that the evaluation criteria align with the organization’s broader business objectives. The strategy is not merely about selecting the cheapest carrier; it is about identifying the partner who offers the optimal balance of cost, service, and risk for specific supply chain needs.

![A symmetrical, high-tech digital infrastructure depicts an institutional-grade RFQ execution hub. Luminous conduits represent aggregated liquidity for digital asset derivatives, enabling high-fidelity execution and atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-institutional-digital-asset-derivatives-rfq-system.jpg)

## Defining the Cost Structure

The first strategic step is to deconstruct the total cost into distinct, measurable components. This provides the necessary granularity for a precise comparison. The structure must be comprehensive, capturing every potential charge that could impact the final invoice. This detailed cost mapping is essential for preventing unforeseen expenses and ensuring true comparability between bids.

- **Base Freight Rate** ▴ This is the foundational cost for moving a shipment from origin to destination. The RFQ must specify the required unit of measure (e.g. per mile, per container, per hundredweight) to ensure all bids are directly comparable.

- **Fuel Surcharges** ▴ These charges are highly variable and can represent a significant portion of the total cost. The strategy should define how these will be evaluated, whether as a fixed percentage, a floating index-based charge, or another methodology. This ensures fairness when market conditions fluctuate.

- **[Accessorial Charges](https://prime.greeks.live/area/accessorial-charges/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)** ▴ These are fees for services beyond standard transportation. It is critical to identify all potential accessorials relevant to the business and require suppliers to provide a specific price for each. Examples include detention, layover, liftgate services, and inside delivery. Standardizing these charges in the RFQ simplifies the evaluation and later, the invoice auditing process.

- **Customs and Duties** ▴ For international shipments, these costs are unavoidable. The strategy must clarify which party is responsible for these fees (the shipper or the carrier) and how they will be calculated and billed.

- **Insurance Costs** ▴ The evaluation must consider the level of liability coverage offered by the carrier and the cost of any additional insurance required to protect the value of the goods in transit.

![Two intersecting technical arms, one opaque metallic and one transparent blue with internal glowing patterns, pivot around a central hub. This symbolizes a Principal's RFQ protocol engine, enabling high-fidelity execution and price discovery for institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/principal-grade-digital-asset-derivatives-rfq-execution-engine.jpg)

## Quantifying Qualitative Factors

A purely quantitative analysis of cost is insufficient. The strategy must also incorporate a system for evaluating [qualitative factors](https://prime.greeks.live/area/qualitative-factors/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), which can have a significant, albeit indirect, financial impact. These elements relate to service quality, reliability, and risk mitigation.

> Transforming qualitative service metrics into quantitative inputs allows for a holistic and objective comparison of supplier bids.

Assigning a weighting to these factors allows them to be integrated into the total cost model. This process translates abstract performance indicators into concrete financial data points, enabling a more complete evaluation.

![A precise stack of multi-layered circular components visually representing a sophisticated Principal Digital Asset RFQ framework. Each distinct layer signifies a critical component within market microstructure for high-fidelity execution of institutional digital asset derivatives, embodying liquidity aggregation across dark pools, enabling private quotation and atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/principal-digital-asset-rfq-protocol-layers-for-high-fidelity-execution.jpg)

## Key Qualitative Metrics to Model

- **Transit Time** ▴ Longer transit times increase inventory carrying costs and can impact production schedules or customer satisfaction. The strategy should assign a daily cost to inventory in transit, allowing for a financial comparison of different delivery timelines.

- **[On-Time Performance](https://prime.greeks.live/area/on-time-performance/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (OTP)** ▴ A carrier’s reliability is paramount. A low OTP rate can lead to production disruptions, stockouts, and expedited shipping costs to compensate for delays. The strategy can model this by assigning a risk-adjusted cost to carriers with lower OTP scores.

- **Carrier Capacity and Scalability** ▴ The evaluation should assess a carrier’s ability to handle peak season volumes and support future growth. A lack of capacity can result in service failures or the need to source expensive spot-market transportation.

- **Customer Service and Support** ▴ The quality of communication and problem resolution can impact administrative overhead. A carrier with poor customer service may require more internal resources to manage, representing a soft cost that should be considered.

By building a comprehensive model that blends quantitative cost data with quantified qualitative factors, the organization can move toward a data-driven decision-making process. This strategic framework ensures that the selected logistics partner aligns with both financial targets and operational requirements, creating a resilient and cost-effective supply chain.

![A sophisticated teal and black device with gold accents symbolizes a Principal's operational framework for institutional digital asset derivatives. It represents a high-fidelity execution engine, integrating RFQ protocols for atomic settlement](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocol-core-engine-for-best-execution.jpg)

![A curved grey surface anchors a translucent blue disk, pierced by a sharp green financial instrument and two silver stylus elements. This visualizes a precise RFQ protocol for institutional digital asset derivatives, enabling liquidity aggregation, high-fidelity execution, price discovery, and algorithmic trading within market microstructure via a Principal's operational framework](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-high-fidelity-execution-via-rfq-protocols-optimizing-market-microstructure-and-price-discovery.jpg)

## Execution

The execution phase translates the strategic framework into a repeatable, data-driven workflow for evaluating RFQ responses. This involves a meticulous process of data normalization, cost modeling, and scenario analysis. The objective is to build a robust evaluation tool, often in the form of a sophisticated spreadsheet or a dedicated software platform, that allows for the objective scoring and ranking of each supplier bid. This operationalizes the TCO strategy, ensuring that every decision is backed by a comprehensive and consistent analytical methodology.

![A precise, multi-faceted geometric structure represents institutional digital asset derivatives RFQ protocols. Its sharp angles denote high-fidelity execution and price discovery for multi-leg spread strategies, symbolizing capital efficiency and atomic settlement within a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-execution-microstructure-framework.jpg)

## Building the Evaluation Model

The cornerstone of execution is the creation of a dynamic evaluation model. This tool serves as the central repository for all bid data and performs the calculations necessary to determine the true total cost of each proposal. The model must be designed for both flexibility and precision.

The first step is to structure the model to accept the standardized data requested in the RFQ. This includes dedicated fields for every cost component, from base rates to all identified accessorial charges. This structured data entry is fundamental to the integrity of the analysis.

![A futuristic, dark grey institutional platform with a glowing spherical core, embodying an intelligence layer for advanced price discovery. This Prime RFQ enables high-fidelity execution through RFQ protocols, optimizing market microstructure for institutional digital asset derivatives and managing liquidity pools](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-prime-os-intelligence-layer.jpg)

## Data Normalization and the Landed Cost Calculation

Once the raw data from each supplier is entered, it must be normalized to create a true apples-to-apples comparison. The model should automatically apply the predefined formulas to calculate the total landed cost for a variety of shipment scenarios. This process moves beyond simply comparing the quoted rates and builds a complete picture of what each supplier will cost under real-world conditions.

The following table illustrates a simplified [Landed Cost calculation](https://prime.greeks.live/area/landed-cost-calculation/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) for a single hypothetical lane, comparing three different carriers. This model integrates both direct and indirect costs to provide a holistic view.

| Cost Component | Carrier A | Carrier B | Carrier C |
| --- | --- | --- | --- |
| Base Freight Rate | $2,000 | $1,950 | $2,100 |
| Fuel Surcharge (15%) | $300 | $292.50 | $315 |
| Detention Fee (2 hours @ $75/hr) | $150 | $150 | $150 |
| Subtotal Direct Costs | $2,450 | $2,392.50 | $2,565 |
| Transit Time (Days) | 3 | 4 | 2 |
| Inventory Carrying Cost ($100/day) | $300 | $400 | $200 |
| On-Time Performance | 98% | 95% | 99% |
| Reliability Risk Cost (5% of Base Rate for each 1% below 100% OTP) | $200 | $487.50 | $105 |
| Total Landed Cost | $2,950 | $3,280 | $2,870 |

In this model, Carrier B initially appears to be the cheapest based on direct costs. However, after factoring in the financial impact of a longer transit time and lower reliability, Carrier C emerges as the most cost-effective option. This demonstrates the power of a comprehensive execution model.

![Sleek, domed institutional-grade interface with glowing green and blue indicators highlights active RFQ protocols and price discovery. This signifies high-fidelity execution within a Prime RFQ for digital asset derivatives, ensuring real-time liquidity and capital efficiency](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-prime-os-execution-interface.jpg)

## Scenario and Sensitivity Analysis

A static analysis is insufficient. The execution phase must include scenario and [sensitivity analysis](https://prime.greeks.live/area/sensitivity-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) to understand how different operational conditions could affect the total cost. The model should allow the evaluation team to adjust variables such as shipment volumes, fuel prices, and the frequency of accessorial charges. This stress testing reveals the robustness of each supplier’s proposal and identifies potential hidden costs.

> A dynamic evaluation model that enables sensitivity analysis is the critical tool for moving from a static price comparison to a predictive cost forecast.

The following table outlines a sensitivity analysis for accessorial charges, showing how the total cost changes if the frequency of these charges deviates from the baseline assumption. This is a crucial step in understanding the risk associated with each bid.

| Carrier | Baseline Landed Cost | Cost with 25% Increase in Accessorials | Cost with 50% Increase in Accessorials |
| --- | --- | --- | --- |
| Carrier A | $2,950 | $2,987.50 | $3,025 |
| Carrier B | $3,280 | $3,317.50 | $3,355 |
| Carrier C | $2,870 | $2,907.50 | $2,945 |

This analysis provides a deeper understanding of the cost structure of each carrier and helps in negotiating contract terms. For instance, the team might seek to cap certain accessorial charges with a carrier whose costs escalate quickly in the sensitivity analysis. This proactive approach to risk management is a hallmark of a sophisticated procurement operation. The final step in the execution is to present these findings to stakeholders in a clear, concise manner, using the data from the model to justify the final selection.

![A light sphere, representing a Principal's digital asset, is integrated into an angular blue RFQ protocol framework. Sharp fins symbolize high-fidelity execution and price discovery](https://options.greeks.live/wp-content/uploads/2025/07/principals-core-asset-rfq-protocol-framework-for-digital-derivatives.jpg)

## References

- 1. Lambert, D. M. & Stock, J. R. (2001). Strategic Logistics Management. McGraw-Hill.

- 2. Chopra, S. & Meindl, P. (2016). Supply Chain Management ▴ Strategy, Planning, and Operation. Pearson.

- 3. Monczka, R. M. Handfield, R. B. Giunipero, L. C. & Patterson, J. L. (2015). Purchasing and Supply Chain Management. Cengage Learning.

- 4. Fawcett, S. E. Ellram, L. M. & Ogden, J. A. (2014). Supply Chain Management ▴ From Vision to Implementation. Pearson.

- 5. Coyle, J. J. Langley, C. J. Novack, R. A. & Gibson, B. (2016). Supply Chain Management ▴ A Logistics Perspective. Cengage Learning.

- 6. Institute for Supply Management. (2015). The ISM Glossary of Key Supply Management Terms.

- 7. Bowersox, D. J. Closs, D. J. Cooper, M. B. & Bowersox, J. C. (2019). Supply Chain Logistics Management. McGraw-Hill Education.

![Intersecting angular structures symbolize dynamic market microstructure, multi-leg spread strategies. Translucent spheres represent institutional liquidity blocks, digital asset derivatives, precisely balanced](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-platform-4.jpg)

## Reflection

![Abstract layers in grey, mint green, and deep blue visualize a Principal's operational framework for institutional digital asset derivatives. The textured grey signifies market microstructure, while the mint green layer with precise slots represents RFQ protocol parameters, enabling high-fidelity execution, private quotation, capital efficiency, and atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-layered-rfq-protocol-for-digital-asset-execution-system.jpg)

## From Cost Center to Strategic System

The framework for integrating logistics costs into a quote solicitation protocol moves the procurement function beyond the confines of a simple cost center. It repositions it as the analytical engine for a complex operational system. The data gathered and the models built provide a level of foresight that transforms how an organization interacts with its supply chain. This process illuminates the intricate connections between price, service, and risk, revealing that the lowest quoted rate is often a misleading indicator of the true economic impact.

The ultimate value of this rigorous evaluation lies in its ability to create a resilient, predictable, and financially optimized logistics network. The knowledge gained becomes a foundational component of a larger intelligence system, empowering the organization to make strategic decisions that create a sustainable competitive advantage. This is the transition from reactive procurement to proactive supply chain design.

![A sleek, multi-layered institutional crypto derivatives platform interface, featuring a transparent intelligence layer for real-time market microstructure analysis. Buttons signify RFQ protocol initiation for block trades, enabling high-fidelity execution and optimal price discovery within a robust Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/institutional-crypto-derivatives-os-precision-execution-rfq-protocol-intelligence-layer.jpg)

## Glossary

<a href="https://prime.greeks.live/question/can-the-principles-of-a-hybrid-netting-system-be-applied-to-supply-chain-finance-programs/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A glowing blue module with a metallic core and extending probe is set into a pristine white surface. This symbolizes an active institutional RFQ protocol, enabling precise price discovery and high-fidelity execution for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-protocol-driving-institutional-digital-asset-derivatives-high-fidelity-execution-precise-price-discovery-for-block-trades-and-capital-efficiency.jpg)

## Supply Chain

A hybrid netting system's principles can be applied to SCF to create a capital-efficient, multilateral settlement architecture. </a><a href="https://prime.greeks.live/area/total-cost/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sophisticated apparatus, potentially a price discovery or volatility surface calibration tool. A blue needle with sphere and clamp symbolizes high-fidelity execution pathways and RFQ protocol integration within a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-protocol-institutional-digital-asset-derivatives-execution.jpg)

## Total Cost

Meaning ▴ Total Cost represents the aggregated sum of all expenditures incurred in a specific process, project, or acquisition, encompassing both direct and indirect financial outlays. </a><a href="https://prime.greeks.live/area/total-cost-of-ownership/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precision optical component stands on a dark, reflective surface, symbolizing a Price Discovery engine for Institutional Digital Asset Derivatives. This Crypto Derivatives OS element enables High-Fidelity Execution through advanced Algorithmic Trading and Multi-Leg Spread capabilities, optimizing Market Microstructure for RFQ protocols](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-optimal-execution-system-microstructure.jpg)

## Total Cost of Ownership

Meaning ▴ Total Cost of Ownership (TCO) is a comprehensive financial metric that quantifies the direct and indirect costs associated with acquiring, operating, and maintaining a product or system throughout its entire lifecycle. </a><a href="https://prime.greeks.live/area/rfq-evaluation/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precise mechanical instrument with intersecting transparent and opaque hands, representing the intricate market microstructure of institutional digital asset derivatives. This visual metaphor highlights dynamic price discovery and bid-ask spread dynamics within RFQ protocols, emphasizing high-fidelity execution and latent liquidity through a robust Prime RFQ for atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineering-driving-institutional-digital-asset-derivatives-execution-across-advanced-rfq-protocols-and-prime-brokerage-frameworks.jpg)

## Rfq Evaluation

Meaning ▴ RFQ Evaluation, in the context of institutional crypto trading, refers to the systematic process of analyzing and comparing quotes received from multiple liquidity providers in response to a Request for Quote (RFQ). </a><a href="https://prime.greeks.live/area/landed-cost/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, light interface, a Principal's Prime RFQ, overlays a dark, intricate market microstructure. This represents institutional-grade digital asset derivatives trading, showcasing high-fidelity execution via RFQ protocols](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-prime-os-execution-system.jpg)

## Landed Cost

Meaning ▴ Landed Cost represents the total cost of a product or asset once it has arrived at the buyer's destination, encompassing all expenses incurred from its origin. </a><a href="https://prime.greeks.live/area/accessorial-charges/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![An intricate, transparent cylindrical system depicts a sophisticated RFQ protocol for digital asset derivatives. Internal glowing elements signify high-fidelity execution and algorithmic trading](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-protocol-architecture.jpg)

## Accessorial Charges

Meaning ▴ Accessorial charges, within crypto request for quote (RFQ) and institutional options trading systems, are supplementary costs incurred beyond the base price of a digital asset or derivative instrument. </a><a href="https://prime.greeks.live/area/qualitative-factors/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A dark, circular metallic platform features a central, polished spherical hub, bisected by a taut green band. This embodies a robust Prime RFQ for institutional digital asset derivatives, enabling high-fidelity execution via RFQ protocols, optimizing market microstructure for best execution, and mitigating counterparty risk through atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-optimizing-high-fidelity-execution-across-diverse-market-microstructures.jpg)

## Qualitative Factors

Meaning ▴ Qualitative Factors in crypto investing refer to non-numerical elements that influence investment decisions, risk assessment, or market analysis, contrasting with quantifiable metrics. </a><a href="https://prime.greeks.live/area/on-time-performance/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A teal-blue textured sphere, signifying a unique RFQ inquiry or private quotation, precisely mounts on a metallic, institutional-grade base. Integrated into a Prime RFQ framework, it illustrates high-fidelity execution and atomic settlement for digital asset derivatives within market microstructure, ensuring capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-prime-os-execution-1.jpg)

## On-Time Performance

Meaning ▴ In the context of crypto systems, particularly for transaction processing and data delivery, on-time performance measures the reliability of a system or network component in completing operations within predefined time parameters. </a><a href="https://prime.greeks.live/area/landed-cost-calculation/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Polished concentric metallic and glass components represent an advanced Prime RFQ for institutional digital asset derivatives. It visualizes high-fidelity execution, price discovery, and order book dynamics within market microstructure, enabling efficient RFQ protocols for block trades](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-prime-os-precision.jpg)

## Landed Cost Calculation

Meaning ▴ In the context of digital asset acquisition, particularly for institutional investors, landed cost calculation determines the total expense associated with obtaining and holding a cryptocurrency, including all direct and indirect charges from purchase to readiness for investment or use. </a><a href="https://prime.greeks.live/area/sensitivity-analysis/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Two sleek, abstract forms, one dark, one light, are precisely stacked, symbolizing a multi-layered institutional trading system. This embodies sophisticated RFQ protocols, high-fidelity execution, and optimal liquidity aggregation for digital asset derivatives, ensuring robust market microstructure and capital efficiency within a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/institutional-grade-digital-asset-derivatives-platform-architecture-high-fidelity-execution-protocols-and-liquidity-aggregation.jpg)

## Sensitivity Analysis

Meaning ▴ Sensitivity Analysis is a quantitative technique employed to determine how variations in input parameters or assumptions impact the outcome of a financial model, system performance, or investment strategy. </a>

**Tags:** [RFQ Evaluation](https://options.greeks.live/area/rfq-evaluation/), [Strategic Sourcing](https://options.greeks.live/area/strategic-sourcing/), [Freight Procurement](https://options.greeks.live/area/freight-procurement/), [Carrier Performance Metrics](https://options.greeks.live/area/carrier-performance-metrics/), [Logistics Cost Modeling](https://options.greeks.live/area/logistics-cost-modeling/), [Qualitative Factors](https://options.greeks.live/area/qualitative-factors/)	

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- 
### [What Are the Most Effective Criteria for a Weighted Rfp Scorecard?](https://options.greeks.live/question/what-are-the-most-effective-criteria-for-a-weighted-rfp-scorecard/)
![An abstract metallic circular interface with intricate patterns visualizes an institutional grade RFQ protocol for block trade execution. A central pivot holds a golden pointer with a transparent liquidity pool sphere and a blue pointer, depicting market microstructure optimization and high-fidelity execution for multi-leg spread price discovery.](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-market-microstructure-optimization.jpg)

A weighted RFP scorecard is a data-driven system for translating strategic priorities into a quantifiable, defensible partner selection.

- 
### [What Is the Optimal Weight for Price in a Complex Technology Rfp?](https://options.greeks.live/question/what-is-the-optimal-weight-for-price-in-a-complex-technology-rfp/)
![A beige spool feeds dark, reflective material into an advanced processing unit, illuminated by a vibrant blue light. This depicts high-fidelity execution of institutional digital asset derivatives through a Prime RFQ, enabling precise price discovery for aggregated RFQ inquiries within complex market microstructure, ensuring atomic settlement.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-engine-prime-os-3.jpg)

The optimal price weight in a tech RFP is a dynamic calibration that subordinates initial cost to the systemic value of quality and risk.

- 
### [What Are the Primary Cost Categories to Consider When Calculating TCO for an RFP System?](https://options.greeks.live/question/what-are-the-primary-cost-categories-to-consider-when-calculating-tco-for-an-rfp-system/)
![Precisely balanced blue spheres on a beam and angular fulcrum, atop a white dome. This signifies RFQ protocol optimization for institutional digital asset derivatives, ensuring high-fidelity execution, price discovery, capital efficiency, and systemic equilibrium in multi-leg spreads.](https://options.greeks.live/wp-content/uploads/2025/07/systemic-equilibrium-in-digital-asset-derivatives-rfq-protocols.jpg)

Calculating RFP system TCO is a systemic analysis of all lifecycle costs to quantify total economic and operational impact.

- 
### [What Are the Key Differences between a Price-Focused Rfp and a Value-Focused Rfp in Terms of Supplier Selection?](https://options.greeks.live/question/what-are-the-key-differences-between-a-price-focused-rfp-and-a-value-focused-rfp-in-terms-of-supplier-selection/)
![A sleek, bimodal digital asset derivatives execution interface, partially open, revealing a dark, secure internal structure. This symbolizes high-fidelity execution and strategic price discovery via institutional RFQ protocols. It optimizes capital efficiency by aggregating latent liquidity, minimizing slippage, ensuring best execution for multi-leg spreads and block trades, and mitigating information leakage.](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocols-price-discovery.jpg)

A price-focused RFP seeks the lowest cost, while a value-focused RFP targets the optimal balance of cost, quality, and long-term partnership.

- 
### [What Are the Key Performance Indicators to Measure the Success of a Collaborative Rfp?](https://options.greeks.live/question/what-are-the-key-performance-indicators-to-measure-the-success-of-a-collaborative-rfp/)
![Abstract forms on dark, a sphere balanced by intersecting planes. This signifies high-fidelity execution for institutional digital asset derivatives, embodying RFQ protocols and price discovery within a Prime RFQ. It represents market microstructure, managing latent liquidity and counterparty risk for block trades.](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-platform-microstructure-execution-prime-os.jpg)

Effective collaborative RFP measurement quantifies the systemic value of strategic partnerships beyond transactional cost.

- 
### [What Are the Best Practices for Modeling Total Cost of Ownership in a Private Sector Rfp?](https://options.greeks.live/question/what-are-the-best-practices-for-modeling-total-cost-of-ownership-in-a-private-sector-rfp/)
![Glossy, intersecting forms in beige, blue, and teal embody RFQ protocol efficiency, atomic settlement, and aggregated liquidity for institutional digital asset derivatives. The sleek design reflects high-fidelity execution, prime brokerage capabilities, and optimized order book dynamics for capital efficiency.](https://options.greeks.live/wp-content/uploads/2025/08/precision-engineered-digital-asset-derivatives-execution-via-optimized-rfq-protocols-enhancing-principal-operational-frameworks.jpg)

A comprehensive TCO model in an RFP quantifies the full lifecycle cost of an asset, enabling strategic, value-based procurement decisions.

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---

**Original URL:** https://options.greeks.live/question/how-do-you-factor-in-shipping-and-logistics-costs-in-an-rfq-evaluation/
