A major cost in the purchasing function is the number of purchase orders processed.One technique that may reduce purchasing-related expenses is to have suppliers compete with each other to meet demand at the lowest price.The name of this technique is

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The technique of having suppliers compete with each other to meet the demand at the lowest price is called a reverse auction. This approach can significantly reduce purchasing-related expenses as it promotes competition among suppliers and can result in better prices for the buyer. An EDI auction and a trading exchange are similar approaches, but they do not necessarily involve competition among suppliers to drive down prices. A supplier consortium, on the other hand, involves a group of suppliers who work together to serve the needs of the buyer, which may not result in the most competitive pricing.

A Major Cost in the Purchasing Function Is the Number