Cost Avoidance Definition in procurement is a strategy to mitigate costs in the acquisition process. It involves minimizing spending by researching potential suppliers thoroughly and selecting those who offer quality supplies at the lowest prices. This process also includes sourcing from reliable subcontractors or alternative solutions that can help save money. Cost avoidance works best when used with other cost-cutting strategies, such as reducing lead time, pre-qualifying suppliers, taking advantage of discounts and rewarding repeat customers. The goal of cost avoidance is to purchase items while not compromising on quality or breaking your budget.