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When selecting a supplier, managers should always choose the supplier who offers the lowest per-unit cost....

When selecting a supplier, managers should always choose the supplier who offers the lowest per-unit cost. Do you agree? Using your own words, justify your answer. (Maximum 200 words)

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Answer - I do not agree. Choosing suppliers much more that scanning a series of price list. Your choice will depand on a wide range on factors such as value for money, quality, reliability and service. Even through, price is important but it shouldn't be the only reason you choose the supplier. Lower price may reflect poor quality goods and service, which in the long run, may not be the most cost effective option. The most effective suppliers are those who offer products or services that match or exceed the needs of your business.

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