Editing Purchasing (section)

=== Commercial evaluation ===
[[Cost of Money]] is calculated by multiplying the applicable currency's [[interest rate]] by the amount of money paid prior to the receipt of the goods. If the money was to have remained in the buyer's account, interest would be drawn. That interest is essentially an additional cost associated with such progress or milestone payments.

The manufacturing location is taken into consideration during the evaluation stage primarily to calculate for [[Cargo|freight]] costs and regional issues. For instance, it is common in Europe for factories to close during the month of August for a summer holiday. [[Collective bargaining|Labor agreements]] may also be taken into consideration and may be drawn into the evaluation if the particular region is known to have frequent labor disputes.

The manufacturing [[lead-time]] is the time from the placement of the order (or time final drawings are submitted by the buyer to the seller) until the goods are manufactured and prepared for delivery. Lead-times vary by product and can range from several days to years.

Transportation time is evaluated while comparing the delivery of goods to the buyer's required use-date. If goods are shipped from a remote port, with infrequent vessel transportation, the transportation time could exceed the schedule and adjustments would need to be made.

Delivery Charges - the charge for the goods to be delivered to a stated point.
* Bid validity
* Packing
* Bid adjustments
* [[Contractual term|Terms and Conditions]]
* Seller's services
* [[Standards organization]]s
* Financial review
* Payment currency
* [[Risk management|Risk analysis]] ([[Volatility (finance)|market volatility]], financial stress within the bidders)
* Testing