Businesses are created to make money for the investors and the investors need to have some confidence that their resources will be put to good use.
Purchasing & Supply with Nyasha Chizu
No sane man would want to carry water using a leaking bucket. Very little, if anything, will be available in the bucket on reaching the intended destination.
The procurement function, therefore, acts as the drain plug on a kitchen sink. It is capable of regulating the outflow of cash in a business as goods and services are procured.
There are many ways in which the procurement function acts as a leaking bucket.
A good procurement process must provide due diligence on the costs to provide some comfort to the investors.
Value of the appropriate buy is determined by competitive comparison of quotations.
The word competitive is used to separate a good decision from the bad ones. It is a fact that not all quotations are competitive and therefore, an effective buyer shall be in a position to compare apples with apples in procurement decisions.
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Emergencies are inevitable in procurement management. While emergencies are part of the mishaps of business, some of them are deliberate, created by officials with corrupt tendencies to short circuit the system for self enrichment.
Chaos theory in management information system assumes that there is some order in the disorder. The situation is really bad when the emergency is merely a smoke screen with the objective of deceiving onlookers through stage-managed effective arrest of the situation.
Nyasha Chizu is a Fellow of Chartered Institute of Purchasing and Supply writing in his personal capacity.
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