In the supply chain world, it often means picking the best based on price. For instance, you have a list of items and 5 suppliers that bid. You would pick the lowest price for each item from whoever had the lowest bid.

An example would be that out of 100 items, you would do the following:

Supplier A was low on 40 items

Supplier B was low on 20 items

Supplier C was low on 20 items

Supplier D was low on 10 items

Supplier E was low on 10 items

If you are still doing this, I would like you to consider the extra costs for all involved. You might get free shipping, but it will be more expensive to do 5 shipments instead of 1 for the suppliers. Your company will have to pay 5 invoices versus one which adds to the cost for the accounting department. None of the suppliers will be happy with the results as they most likely submitted a bid based on their getting the entire order.

So if you are cherry-picking, please consider every factor and not just the price.


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