Eric, thanks for this post. How timely to go back to the basics of Deming, particularly at a time when arms-length, "objective" contracting is at an all-time high. These days there are clients who seem to feel that "trusted relationships" between seller and buyer are code words for cozy, illicit, price-fixing agreements. They find their natural allies in those who preach the cost-cutting value of increasing reliance on contracts, and of kicking things to purchasing.
There's nothing wrong per se with buying through purchasing, but the motives for going there are often suspect. (And, by the way, it makes for a very tough job for purchasing to deliver on--"find the low-cost provider and make sure they've got high quality.").
I think it's worth noting your comment that "I cannot think of a single organization that has awarded a contract based on the lowest price and has not suffered in the end." I'm not sure I have either; certainly it's rare in any case. And therein lies a lesson.
Eric Brown
· 2 years ago
You are welcome Charles. It always amazes me to be able to go back to some of the 'original thinkers' and realize how relevant their ideas still are today.
All Comments
There's nothing wrong per se with buying through purchasing, but the motives for going there are often suspect. (And, by the way, it makes for a very tough job for purchasing to deliver on--"find the low-cost provider and make sure they've got high quality.").
I think it's worth noting your comment that "I cannot think of a single organization that has awarded a contract based on the lowest price and has not suffered in the end." I'm not sure I have either; certainly it's rare in any case. And therein lies a lesson.
Great blog BTW.