Supply managers must shift their focus in procuring materials,services and equipment from price to total cost.

Question

Quizplus · Accepted Answer

This statement is true. Supply managers should not only focus on the initial price of the goods or services being procured, but also take into consideration the total cost of ownership, which includes factors such as transportation costs, maintenance costs, and the cost of replacing the item in the future. By considering the total cost, supply managers can make more informed decisions that can lead to cost savings and improved efficiency.

Supply Managers Must Shift Their Focus in Procuring Materials,services and Equipment