PPP Management

An earlier blog today highlighted a leading FTSE100 company commenting on no longer using price only tender evaluations.  Clearly such practices makes for strained relationship with suppliers and when used wholesale across the procurement spectrum drives a culture of transactional behaviour. The first of the link identifies that little has been done to develop supplier relations; this clearly has strong implications for the end user or consumer as well as ethical and health implications. http://www.supplymanagement.com/news/2014/no-increase-in-srm-efforts-following-supply-chain-scandals In a retail environment where cost is very much a deciding factor to the consumer the article, linked below, illustrates further steps to heighten price sensitivity as a key factor. http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/10617384/Argos-and-Homebase-demand-rebate-from-suppliers.html

   Surprising to see the article in Supply Management commenting on evaluation criteria not being on price alone ( http://www.supplymanagement.com/news/2014/dont-always-go-for-the-cheapest-price-buyers-warned  ). Awarding on price alone raises risk around quality, compatibility, subsequent additional costs, product life etc.  However, there are some services that can be competed on price alone and there is absolutely nothing wrong in competing on price alone when the other issues of service and quality do not play a factor. What are these areas? Utilities are a prime example where the quality of the product is mandated by the regulator and there are no delivery issues that would differentiate competitors. Without stating the obvious the following link provides a wide variety of reasons why other factors are important: https://www.google.co.uk/#q=tender+evaluation+price+alone&start=0 Some of the links from Australia are excellent and all of the articles ...