A supplier may be found that markets in any one of a number of channels. Selecting the proper channel improves the chances of obtaining the lowest purchase cost for your purposes.

Buying directly from the manufacturer of a product avoids the cost of middlemen who increase the cost by keeping inventory of the item, by adding to the cost for extra transportation and by the added cost of administration. However manufacturers may refuse to sell small quantities, and they add to leadtime because they do not inventory finished products of what they make. Leadtimes may be long because the item you want may not be scheduled for production very soon. On the plus side, it is usual for manufacturers to sell for a reduced price to buyers who plan to use their products as components in an assembly. This is referred to as OEM (Original Equipment Manufacturer) pricing.

Prices from middlemen such as distributors, service centers, and warehouses, are usually higher than from manufacturers, but they are happy to sell in low quantities, often have inventory of what you need, and can deliver quickly - sometimes within a day.

Sometimes when there is a shortage of supply in an industry and product is placed on allocation, the service warehouse will provide what you need at a lower cost than from the manufacturer, but that is a rare situation. Nevertheless, a good buyer will always check various sources and types of sources to get the best deal possible.