State whether the following statements are true or false with brief reasons: Don't always focus on the lowest price when choosing suppliers.

True. Focusing solely on the lowest price when choosing suppliers can be detrimental in the long run. While cost is important, other factors like quality, reliability, delivery timeliness, supplier's financial stability, flexibility, and after-sales service are equally, if not more, critical. A supplier offering the lowest price might compromise on quality, lead to production delays, or have poor service, resulting in higher overall costs (e.g., rework, lost sales, reputational damage) for the company. Sometimes, more flexible payment terms from a slightly higher-priced supplier can improve cash flow more than a bargain-basement price.