What is the cost of lowest bid wins?

A lowest-bid-wins strategy is always a choice.  And it has a cost.

Price can only be the determining factor when the benefits of all purchase options are exactly the same. 

Inflexibly assuming the benefits of every bid submitted are the same (you do if all that matters is low price) motivates your bidders to give you - more of the same.

If you're always rewarding your supplier base for more of the same, it's the opposite of innovation.  Because innovation is something different that creates value.

So don't be surprised if your industry or organization lacks innovation.  It's the natural cost of using a low-bid-wins strategy.