So many NEGATIVE comments here.
Let's do this scenario.
XYZ Corporation sends out a bid for making Widgets for their product line.
Gold Star Manufacturing bids $25 per Widget and Double Down Manufacturing bids $29 per Widget. Gold Star wins the bid for 200 widgets per week at $25 per widget with a 1-year contract.
For the first 3 months, Gold Star supplies 2580 widgets earning $64,500.
Then for some reason, XYZ starts getting decreased amounts from Gold Star when it drops to 60% of the required amount and holds steady at that rate for a couple weeks. XYZ contacts Gold Star and asks why the decrease in shipments. Gold Star replies that they allow their employees to do whatever they want, whenever they want, since they're not slave drivers and XYZ will get the widget whenever because they're in a Legal Binding Contract with Gold Star to pay.
XYZ then contacts Double Down, informing them that they're current supplier cannot meet demand. XYZ also asks about Double Down's manufacturing procedures. Double Down informs XYZ that they're ISO-9004 Certified, that they keep track of all products produced per hour, down-time, over-time, QA checks, Engineering, Safety, First Aid occurrences, and supplier shortages. XYZ asks for a quote of 130 widgets (GS is not meeting shipment, but contract terms say to pay). Double Down bids at $26.50 for 6 months with the option to increase the amount to their original bid and a 5-year contract. XYZ agrees to the terms.
Eventually the year is over, and Gold Star wants to Renew the Contract.
XYZ declines saying that they've found another manufacturer that not only will meet production but guarantees shipment with on-time delivery.
This happens ALL time and the Majority of you SAY that it doesn't.