[Supplier] A new supplier offers aggressive pricing. How do you decide whether the savings are worth the risk?

Official answer available

Preview the opening of the answer, then unlock the full walkthrough.

I would first ask what kind of risk the business would really be taking on by moving. Low pricing matters, but it matters very differently in a low-consequence category than it does in something critical to service, quality, or production continuity. So I would test capability, references, ramp-up risk, and whether the supplier can actually support the volume and timing we need.

If the savings are real, I still want...

Related Questions