What does piece price refer to in a procurement context?

Piece price refers to the price at which a supplier is willing to sell a single item or unit of a product. This concept is crucial in procurement because it serves as a fundamental basis for negotiations and purchasing decisions. Knowing the piece price allows procurement professionals to evaluate offers from different suppliers, compare costs more effectively, and consider the implications of volume purchases versus single-item acquisitions.

In contrast, the other options do not accurately define piece price. For instance, specifying bulk orders or total costs that include transportation introduces additional factors that are not inherent to the definition of piece price itself. Likewise, focusing solely on the cost of manufacturing neglects the broader context that also includes logistics and supplier pricing strategy. By understanding piece price, procurement professionals can make informed decisions about sourcing and budgeting within their supply chains.