Question

A firm once made purchasing decisions based on which supplier had the lowest cost. But once cash flow was healthy, purchasing decisions were made based on which company could provide the goods and services the fastest. In this case, delivery speed is clearly the order qualifier.

a) True
b) False

Answer 1

The statement is false as the shift in the firm's priorities from cost to speed suggests a change in strategy, not that delivery speed is an 'order qualifier'. Speed might be an 'order winner', which allows a company to outperform its competition.

Step-by-step explanation:

The statement that delivery speed has become an order qualifier for a firm is false. In business terminology, order qualifiers are the characteristics that allow a company's goods or services to be considered for purchase by customers. They are the minimum standards that must be met. The change in purchasing decisions from lowest cost to fastest delivery indicates a shift in the firm's priorities rather than establishing speed as an order qualifier.

Initially, cost was the main concern, probably making low-cost an order qualifier at that time. Later, as the financial situation improved, delivery speed became a priority, but not necessarily an order qualifier. It could be an order winner, which is a factor that differentiates a firm's offerings from its competitors and wins customer orders.