In addition, buyers review suppliersprices, quality, availability, and selection. Once buyers find a few good suppliers, they solicit bids. This means buyers give suppliers a list of what they want. Suppliers then give buyers a written statement of how much it will cost for all those goods. Buyers and suppliers then discuss technical and business problems that may affect the purchase.
Buyers try to bargain for a lower price on the goods.
Once buyers are happy with the price, they sign a contract with the supplier. Purchasers must know how their products are created. They must know when parts will be needed so the order can be placed in time. If the parts are missing, many businesses have to stop production. Buyers often are not told what to buy.