Competition in society

The “competition-promoting” purchasing practices are Multiple Sourcing, Short-term Contracting, Competitive Bidding, and Fully developed specifications. Multiple Sourcing is designed to assure availability among all of the required materials. Short-term contracting is designed to get the full benefits of changing markets and to help search for better alternatives. Competitive bidding is designed to help achieve the best price for a product in a given market through a competitive environment. Finally, Fully developed specifications are designed to ensure the correct and uniform product quality. Another rationale for this practice is to promote a competitive buying environment and to exploit a competitive situation. One of the major...