What is an issue with the three quote problem in procurement?

The three quote problem in procurement refers to the challenge associated with obtaining just three quotations as a means of sourcing. It's widely understood that merely collecting three quotes does not necessarily ensure that the procurement process is robust or comprehensive enough to secure the best value for money or to assess the quality effectively. This approach can lead to insufficient competition, overly simplistic evaluations, and potentially overlooking more favorable options or providers.

Considering this context, stating that it is "considered not good enough" accurately captures the critique of relying solely on three quotes. Simply obtaining three quotes can create a false sense of security and may not always reflect the market's true offering or the complexity of the supply chain needs, which often require a more thorough analysis and a broader range of options. It highlights the limitation of this method, as important factors such as quality, capability, and after-sales service might be disregarded in favor of a quicker, more quantifiable process.