Performance and the Price Production Indicators
A purpose of production is for getting the best price. The best price in many circumstances is at the lowest price. Meanwhile, the developing of several misconceptions that said low prices are considered likely to ignore the quality of work. Or low prices are considered increasing the risk of contract failure and working failure. Low prices or terms that are often used is a drastic reduction which is also be acknowledge as a form of unfair competition.
In the procurement, the purpose of obtaining the best price, reducing the risk of contract failure, or creating a healthy competition were not the things which are related to each other. The potential of the contract failure or the potential of lack quality of working are not associated with a low price unless the offer is from the suppliers that are not credible and did not have the ability.
Low prices also are not the indicators of the occurrence of unfair competition, unless the low price is continuously offer by one business unit which have been killed its competitors. As it’s understandable, the procurement process would eventually produce a contract with the supplier which the essence was an agreement of the parties about the supplier’s obligation to provides goods or complete and submit the work to users of the goods.
August 23, 2010
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Product whether in the form of good or service is a source of income for a company. Product is something that is offered by the producer to the consumer. Therefore, you can not simply just offer a product to the consumer without making it more attractive than your competitor’s product. It must be have an added value that could be the reason why the consumers should choose your product. Therefore I made a list or check list or standards that should be met in order for your products to compete and hopefully can make the consumer choose your product.