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thers iis no ultimate target for any item when we need to buy any item the procedure will be depends on specification and quality request
You should be more specific about what you are buying. It makes a lot of difference if you are buying high tech equipment / medicines / textiles or FMCG.
You have to consider your constraints in order to answe this question correctly. Best quality has a price but do you really need best quality? Low cost items might have some quality problems which might increase your total cost of ownership and damage your company's bottom line figure.
So you need to optimize it depends on your needs.
depending on the item procured.
engineering and high tech. items or usable jute bags .
i always stay with high quality at an acceptable cost.
more times than ever low quality ,low price items cost more in terms of cost analysis.
The ultimate Target of is subject to the PR requester the PO is to follow the specification set by the consignee in order to have the Service in place regardless the low cost
As a general principal, there is always a trade-off between quality and price. The more you pay, the better you get. However, decision on this is required to be made prior to starting the actual purchase process.
In fact, the buyer has an important task before going to market or floating RFP, and that is: to identify requirement in terms of specifications, quality, reliability, after sales service etc etc. The rest follows automatically, and you have to take the lowest priced offer only.
Low Quality - Low Price, High Quality - High Price! This concept is a passé! These days the competition is roaring and the High Quality products can be availed at Low Cost, provided one has the ability to negotiate strategically.
Usually in competitive bidding where two or more vendors are invited to quote, there will be a necessity of technical evaluation of the material or services offered by the bidder. Wherein, one may also need to research about the aftersales service and do the background check of the bidders.
The high quality of their offerings would probably be evident with the points awarded in the Technical Evaluation. Moving further, as there is a possibility of this vendor’s quote being on a higher side, one may need to compare these prices with the lowest and prepare a strategy to negotiate and get the prices down, if not lower, at least closer to the lowest quotation received. Thus, making the deal work in the best interest of the company.
Answer varies according to the requester's requirements
but in general a combination of both factors is required
professional Procurement / Purchaser should get the both low cost and best quality as a procedure and rule . but sure you have consider the value of project .
in some laxury projects like Hotels or resorts specifications will apear clearly about the brand and vendor so you can only follow the specs and get prices from short list vendors .
Depends on what your motive is..
Low cost might make you buy in bulk and hence there could problem in logistics or warehousing. Or you might have to compromise on quality for which you would have to have strong reverse logistics chain.
Best quality might overshoot your budget and also contribution margin could be reduced drastically, but than there would be less repair or returns or recall which would save your support costs.
Both cost and quality matter. So, without dropping the quality requirements, if a buyer achieves lower costs then that is the accomplishment of the buyer, that is his professionalism and expertise.
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