Procurement – MEAT? Considerations in the light of Bexit Dr. Paul Davis Dublin City University Business School
‘It is unwise to pay too much, but worse to pay too little ‘It is unwise to pay too much, but worse to pay too little. When you pay too much, you lose a little money. When you pay too little you sometimes lose everything, because the thing you bought was incapable of doing what it was supposed to do. The common law of business balance prohibits paying a little and getting a lot – it can’t be done. If you deal with the lowest bidder, it is well to add something for the risk you run, and if you do that, you will have enough to pay for something better’. John Ruskin (1819 -1900)
What is MEAT? MEAT – Most Economically Advantageous Tender How do we interpret this ? Price vs. Quality ? Is there not more we should be thinking of? Sustainability Economic / Environmental / Social
Is that all there is to MEAT? What about Risk? How do we assess Risk? Lowest Price vs Risk Brexit as factor
Some Key Questions ? What happens post Brexit? How do we reconfigure our supply chains? How do we change the focus to more local supply chains? What we need to do to rebuild these local relationships?
Trends in Procurement Emphasis is on strategic procurement Procurement Contributes to making Markets Upstream integration and partnerships with suppliers will increase
Trends in Procurement Maturing Procurement and sourcing governance models Purchasing ethics, purchasing social responsibility or green purchasing are growing Problems are shared responsibly
Trends in Procurement Margin Pressure Debasing of currencies Increased reliance on spend analytics
Trends in Procurement New Regulatory Regimes perhaps Drive to Compliance – but to whose rules Supply Chain Risk – where ?
Questions ?