There are a number of standard ‘truths’ that I hear buyers say often and I thought it was about time to dispel some of these myths.
The business engages us too late in process:
Get out of the process, if all you do is sit in a process and slow it down then no wonder they try to avoid you. Stop moaning about it. You need to get out of the process, remove procurement from the critical path, make it easy for the business to comply and get on with what they want to do.
£1 saved by procurement is £1 added to the profit:
This may be true in theory. But theory tells me that if I spend £200m a year and I stop buying entirely then I can save £200m a year. I doubt whether the business would be making an extra £200m, they would be out of business. It’s not true and we need to look at total value added by our suppliers and to keep improving it.
It would be better if I had it all under control, we need more control:
Better for who? Better for procurement certainly but would it really be better for the business, go and ask them. What they need is procurement to help them to deliver their objectives, this may be cost reduction through better control in some areas but I doubt it is the only thing they need.
We are focussed on VFM and not on lowest cost:
Whenever I hear this (and I hear it a lot) I want to check on what basis they are paid. I bet their management are looking for savings and this drives a focus on lowest cost. Buyers want to believe in vfm but they rarely get past lowest cost. Of course, they are right to believe in vfm, it’s just that their objectives rarely reflect it.
Our tender process is fair and transparent:
No it isn’t. Like all human interactions it is biased. Sourcing decisions are nearly always based on relationships to some extent and relationships are subjective not objective. There may be some processes that are fairer than others but find me a buyer who happily buys from a sales person that he dislikes and you will find that they can’t wait to move the business.
Whilst ever so slightly cynical, but then aren’t most things on this day in particular, I cannot help but agree. Especially about control and process – and in particularly in the public sector.
All to often I hear colleagues rant and rave about the procurement process and they don’t realise that it is that same attitude to the process that means the business do not engage with them sooner. Working with the business to use the public procurement rules as a framework to engage the Market, identify the best solution for the money available will have them coming screaming to our door. I’m a cog in the machine, not the organ grinder and procurement should never be the grinder.
Wasn’t intended to be cynical! Guess, it might read like that. Intended to be a call to arms for buyers to break out of some of their old thinking.
New year, new hope!