Do not focus only on cost and speed
when selecting suppliers. Because
most firms tend to award contracts to
suppliers with the lowest bid, many
suppliers may commit unethical acts
in order to ensure profitability after
winning a contract with the lowest
bid. To break this vicious cycle, a firm
should develop a more balanced view
and consider different attributes than
simply cost and speed when selecting
suppliers and the firm should communicate
this holistic measure with potential
suppliers.