1:14 PM
In our private lives, we all buy goods and services almost every day. We do so usually but not always without any problems. If there are problems, then we are protected by a raft of consumer legislation which helps take some of the sting out of caveat emptor (let the buyer beware). Protection is not perfect but it is there and it is supplemented by a number of voluntary codes of conduct practiced by customer focused vendors.
In business to business buying and selling transactions, however, such buyer friendly legislation either does not exist or is much more limited in its scope. Moreover, many vendor organizations have a much more hard nosed approach to their customers. The importance of power in a relationship is much more evident and so is the vendor organization's use of its power to more aggressively protect itself.
The consequences of poor procurement of goods and services can be more evident. Consumers buy relatively few things which are seriously likely to damage their wealth if they buy badly (examples are a home, a pension, may be a savings plan and a loan scheme). Organizations buy critical goods and services much more frequently and they can be are put out of business by the cost of a poor procurement.
In many organizations, staff are often given little or no formal training in procurement. There is also widespread ignorance of the causes of commercial failure arising from poor procurement of goods and services. We look here at some of the things which you should know and which are covered by a series of modular courses which are designed using the Pareto 80:20 principle to quickly bring purchasing and contracting staff up to speed without the need for long term study.
Mapping Procurement to Corporate Strategy
Commercial Failure - avoiding procurement roulette