Which procurement method focuses on purchasing at the lowest possible cost through competitive bids?

The procurement method that focuses on purchasing at the lowest possible cost through competitive bids is formal, competitive bid buying. This method involves soliciting bids from multiple suppliers and selecting the one that offers the best price while also meeting the specified quality and service requirements. By inviting different suppliers to submit their bids, organizations can compare offers and choose the most cost-effective option.

This approach is structured and regulated, often used for larger purchases where the total cost of goods or services can significantly impact budgetary constraints. It emphasizes the importance of transparency and fairness in the purchasing process, ensuring that all suppliers have an equal opportunity to compete for the business.

In contrast, other procurement methods, such as informal purchasing, often rely on fewer suppliers and may not emphasize competitive pricing to the same degree. Group or cooperative purchasing involves pooling resources with other organizations to leverage collective buying power, but it doesn't exclusively focus on competitive bids. Centralized purchasing means that all purchasing decisions are made at a central location, but it doesn't specifically highlight competition for the lowest cost like formal competitive bidding does.