Food Production
Most people who work in purchasing are, unfortunately, slaves to numbers. They are usually none too interested in the relative value of a product or service; they want to know only what will cost them the least. One of my former clients ran a production facility that handled potatoes. This client, I’ll call him Smith, would receive several tons of potatoes each week and his equipment would transform those potatoes into french fries, curly fries, and other potato products. Smith needed to purchase some new potato-slicing equipment, so he asked his purchasing agent to gather some proposals and find the best deal. Lou, the purchasing agent, solicited proposals from three companies.
Company A quoted a price of $205,000 for the new ...
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