Better Procurement Practices are Required to Improve Productivity in Fiji
Better Procurement Practices are Required to Improve Productivity in Fiji
Fiji needs to increase its productivity or face ever increasing irrelevance in a world where economic and social barriers to trade are decreasing rapidly. Much has been discussed in Fiji about the need to increase investment to increase labour utilisation and productivity.
An element of productivity which is seemingly ignored on the input side is the cost of purchasing goods and services. The act of taking possession of a good or service, or procurement, has developed rapidly along with supply chain management as a science over the last twenty years.
A nation which imports goods and services at the high level Fiji does needs to learn both these sciences and apply them, urgently.
Procurement is not a difficult science. It does however, like all sciences, have techniques to be learnt and applied.
A simple but effective technique to use as a buyer is Короткое замыкание the buying relationships matrix. Constructing this matrix allows a buyer to understand where their purchase is positioned with suppliers and develop strategies to suit.
The two dimensional matrix plots on one axis the product value, Sony KDL-26P2520K complexity and buyer strength from low to high. On the other axis the matrix plots market complexity, market risk and supplier strength from high to low.
When a purchase is low on the product value axis and high on the market complexity axis, the ability to attract the interest of suppliers is low. The likelihood is that contracts SAMSUNG VCC5630V32 will be SAMSUNG VCC6260V3R more important than relationships, due to the difficulty in sustaining senior level interest from the supplier.
When the purchase is low on
(more…)