Cheaper and cheaper and more and more worthless

Far too many businesses still stick to the principles of competitive tendering (bidding), on the basis that it ensures better “value for money” by forcing suppliers to compete. In reality, it is a deeply flawed approach to procurement.

Although it may offer transparency and a low-cost solution, competitive tendering leads to suppliers cutting costs to ensure a satisfactory profit margin. This implies the use of cheaper labour and materials. Safety standards are often jeopardised and the buyer may end up with inferior, poor quality products or services.

I could refer to several egregious examples of this, but a particularly salutary one is the story of the Space Shuttle Challenger disaster:

Click here for an analysis of the Space Shuttle Challenger disaster.

In a world where striving for success is everything, we lose sight of the meaning of value. In the end, making a product or service cheaper and cheaper risks making it worthless.

About thespeedofdark

David Winship has written an unauthorised autobiography and several critically disdained literary tomes. His work is frequently compared with Steinbeck, Orwell and Hemingway, but unfortunately Mike Steinbeck, Daisy Orwell and Howard Hemingway were all terrible writers. He has been totally overlooked for the most prestigious literary awards worldwide, which is a shame as most of the words are spelled correctly. In fact, his books contain material that ranks with the finest literary works in history: all the right letters are there, just not necessarily in the right order.

Dave’s blog (The Speed Of Dark Blog) is part of his crusade for truth and justice and universal entitlement to free real ale. It may well be that his whole purpose in life is to serve as a warning to others.

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Category(s): Dark Mutterings, Opinion
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