One negative effect of competitive bidding is that suppliers don't want to invest in expensive, long-term specialized assets as they will be reluctant to agree upon scheduling that will increase a supplier's costs and reduce its profitability.

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This is because in a competitive bidding situation, the supplier who offers the lowest price is usually chosen. Therefore, suppliers may not want to invest in expensive assets if they have concerns about their return on investment due to the pressure to reduce costs in the bidding process.

One Negative Effect of Competitive Bidding Is That Suppliers Don't