Hi
We had a purchasing policy that required staff to obtain:
This has recently changed to:
It is hoped that by lowering the threshold for two quotes that it would encourage more competition and achieve a better financial outcome.
For example:
first quote at $3,000
second quote at $2,500
Which would efficiently mean by seeking the extra quote it has saved the organisation $500 in this instance.
Is there a formula that works in this scenario?
We had a purchasing policy that required staff to obtain:
- one quote for values between $0 and $5,000
- two quotes for values between $5,000 and $10,000
This has recently changed to:
- one quote for values between $0 and $2,000
- two quotes for values between $2,000 and $10,000
It is hoped that by lowering the threshold for two quotes that it would encourage more competition and achieve a better financial outcome.
For example:
first quote at $3,000
second quote at $2,500
Which would efficiently mean by seeking the extra quote it has saved the organisation $500 in this instance.
Is there a formula that works in this scenario?