Which purchasing method is typically used for expensive items?

The competitive bid purchasing method is commonly used for expensive items primarily because it allows for a fair and transparent process in uncovering the best value for money. In this process, multiple suppliers are invited to submit proposals or bids for the items required. This not only fosters competition among suppliers but also enables the purchaser to evaluate various offers based on price, quality, and service.

When large expenditures are involved, purchasing managers can benefit from the competitive bidding process as it helps mitigate risks associated with overspending and ensures that the organization receives quality products at a reasonable price. Additionally, having multiple options facilitates better negotiations and can lead to improved contractual terms.

In contrast, direct buy is often utilized for items that are readily available and where price competition is not critical, while emergency procurement is reserved for situations requiring immediate sourcing due to urgent needs. Consultative purchases typically entail more personalized advice and assistance, often for specialized items or services rather than straightforward competitive pricing. These methods do not provide the same level of cost-efficiency and oversight that competitive bidding does, especially for high-value items.