What is the name of the procurement method where a buyer uses one vendor for most of their purchases?

What is the name of the procurement method where a buyer uses one vendor for most of their purchases?

• A. Centralized purchasing
• B. Formal, competitive bid buying
• C. Prime vending
• D. Group/co-op purchasing

Answer: (C)

The procurement method referred to as prime vending involves the buyer establishing a relationship with a single vendor to fulfill most of their purchasing needs. This approach simplifies the procurement process, provides consistency in product quality and pricing, and can also lead to better negotiation terms due to the volume of purchases being concentrated with one vendor. By relying on a prime vendor, the buyer can streamline ordering, reduce administrative costs, and often improve service levels. In contrast, centralized purchasing typically refers to a system where purchasing decisions are made from a central location within an organization, which may involve multiple vendors rather than focusing on one. Formal, competitive bid buying involves soliciting bids from multiple suppliers to ensure the best price and service, which differs from the single-vendor focus of prime vending. Group or co-op purchasing refers to a consortium of buyers who pool their purchasing power to obtain better pricing from suppliers, rather than relying on a single source. Thus, prime vending stands out as a strategic method for organizations seeking efficiency and consistency in their purchasing strategies by leveraging a primary supplier for a majority of their needs.

The procurement method referred to as prime vending involves the buyer establishing a relationship with a single vendor to fulfill most of their purchasing needs. This approach simplifies the procurement process, provides consistency in product quality and pricing, and can also lead to better negotiation terms due to the volume of purchases being concentrated with one vendor. By relying on a prime vendor, the buyer can streamline ordering, reduce administrative costs, and often improve service levels.

In contrast, centralized purchasing typically refers to a system where purchasing decisions are made from a central location within an organization, which may involve multiple vendors rather than focusing on one. Formal, competitive bid buying involves soliciting bids from multiple suppliers to ensure the best price and service, which differs from the single-vendor focus of prime vending. Group or co-op purchasing refers to a consortium of buyers who pool their purchasing power to obtain better pricing from suppliers, rather than relying on a single source.

Thus, prime vending stands out as a strategic method for organizations seeking efficiency and consistency in their purchasing strategies by leveraging a primary supplier for a majority of their needs.