Sorry To Ask – But Does Any Of This Make Sense?
If what Balfour Beatty are reported as saying about their supply chain re-structuring is true, then it seems to me like the world’s finally gone completely mad!
According to Balfour Beatty supply chain director Andrew Haworth the company currently carries out around 150,000 transactions a year – 130,000 of which are for low-value items including building materials and plant equipment.
What about transactions with its Sub-Contractors then? Are they considered “low value” or are they just not considered at all?
The report goes on to say that the system will become automated for low-value goods.
Haworth said: “Procurement teams no longer have to get involved in ordering low-cost supplies. The transactional desk means anyone can do it. Now we only have 20,000 procurement transactions that need attention.”
Do Balfour Beatty order low value goods for construction projects?
If so how can they magically reduce the number of transactions to 20,000 just because now “anyone” can place an order?
But the worst bit for me is that;
“A central procurement team – Supply Chain Solutions – has been set up and it will consist of 13 supply chain managers who will work alongside firms that supply sub contractors to Balfour Beatty.
The team will get involved in bids and seek out innovative and effective design solutions. That’s BB speak for “cheap”
In addition, a team of around 60 senior procurement managers will be put in place to oversee larger, more complex deals.”
So the whole procurement process is going to be handled by “procurement managers” who will seek out “innovative and effective design solutions”.
Talk about lunatics running the asylum.
God help us!