Blog•Apr 1, 2026
Price Should Almost Never Decide Which Supplier You Choose: The Real Process That Creates Value
The piece argues that price should rarely be the decisive factor in supplier selection, emphasizing the need for early procurement involvement. It highlights a "late engagement problem" where stakeholders bring procurement in after the need is defined, creating biased shortlists and hidden costs—as illustrated by a car maker losing $13.2 million after a €0.40 ($0.44) per‑chip price cut caused production delays. Experts recommend structured models like Carter’s 10 C’s and thorough market analysis before issuing an RFP to evaluate total cost of ownership. Ongoing post‑signature governance is also essential to sustain performance and mitigate risk.
