Why volume is not king
13 September 2012
The idea that greater volume equals lower prices may be accepted wisdom in procurement circles, but it doesn’t add up, argues Wally Johnson
For far too long, purchasing has dined out on the idea that the more you buy, the better the price. But the fact is that the “Viking” (volume is king) model applied ad infinitum to business-to-business and business-to-government purchasing has not delivered significantly better prices than those achieved by less volume-intensive buyers.
Evidence collected by my...