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In the past, organization bought goods of good quality and quantity to offer excellent services to the clients but recently the trend has changed as purchasing is seen as a strategic form used by…
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Download file to see previous pages In the past, the process of purchasing was clerical as the buyer was focused on buying quality goods from the supplier with the lowest price possible (Reddick 148). The buying of quality goods attitude has changed over the years as there has been increased competition locally and internationally over goods and services, hence suppliers do consider both quality and the prices of goods.
Total Cost Ownership also referred to as TCO, is the purchase of an asset plus the cost of the operation (Reddick 150). When buying an item the buyer should not look at the item purchase price but also the cost of ownership. That is, and the item with a lower total cost will have a better value in the end. Lowest purchase price on the other hand, refers to the lowest amount of cash that a seller offers to the purchaser regarding the sale of a particular ...Download file to see next pagesRead More
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