public sector spend £22 on 65p light bulbs. Sums these fools up really

Graham_Devon

bobthedambuilder wrote: »

Well how else do you think the buying dept heads pay for their kids to go to private school?

Well they won't be soon, as it's all changing, and we'll be able to buy from whereever we want. New government changes.

Rochdale_Pioneers

FATBALLZ wrote: »

Regardless of the article, this actually sounds like a good idea. Moving straight into the public sector is much like having your parents pay all your expenses when you're growing up, you never learn the value of money or really understand where it comes from. This should at least apply to management roles.

Have to agree with this. I spend all my time trying to eke out every last drop of profit from the contracts I have with my customers. From haggling the deal down to the last penny to managing costs as low as they can go to worrying about every pound of expenses I put through my cost centre. Thats MY money going out the door, I just pass it onto my employer once I hit my EBIT number.

But why are we still singling out the public sector? As so many of us have noted, dodgy procurement is everywhere.

vivatifosi

Rochdale_Pioneers wrote: »

But why are we still singling out the public sector? As so many of us have noted, dodgy procurement is everywhere.

The logical solution with this type of procurement would be to have a framework agreement rather than a call off contract. Then people could buy from the catalogue where it is logical to do so, but also buy elsewhere when the skillset would allow. Anyone who says that their suppliers wouldn't agree to that in the current market is talking b*llox.

Clearly it wouldn't make sense for everyone to buy their own bits and bobs because the cost of administering that wouldn't make sense. Even if someone could buy a bulb for 60p from Tescos, by the time that's processed through expenses it could be more expensive than one that costs 90p. However if an engineer is regularly buying parts for £120 that can easily be bought for £60 elsewhere, then that sort of saving should be factored into the system. It's common sense, not rocket science.

Degenerate

Whatever the truth of this particular story turns out to be, I have no doubt that many genuine examples of such waste can be found. This has nothing to do with party politics or public vs private sector, however. Overpaying through dodgy procurement arrangements is a symptom of bureaocracy and bad managment that has afflicted all administrations and many large companies.

The private-sector company I work for used to pay £700 for a £150 monitor on the basis that our framework agreement provided "installation" and "support". It took a long time for them to realise that it was more cost effective for us to just plug it in ourselves and buy another one should it break down.

Orpheo

The private sector has been suckling at the teat of the public sector. Successive governments have encouraged and increased this; the current government intends to accelerate the process.

ILW

I believe that a major difference between public and private sector is that, if it transpires that a purchasing dept has been grossly overpaying over a period of time, the private sector manager would be sacked, whereas the public sector manager would probably be promoted. The public sector does not like individuals to be accountable which is why it can be so innefficient.
I did work for one company where the MD found out that we were paying more for some supplies than our competiton, the head of purchasing was told bluntly to renegotiate or go.

Gorgeous_George

Incompetence from a civil servant maybe. Outrageous profiteering from a private sector supplier definitely.

By all means bash the buyer but use the cosh on the vendor as well.

GG

daveyjp

When you outsource massive contracts there are only a few companies who can provide it, so you don't get the best price.

Procurement cartels are rife:

http://www.mms.co.uk/MMSKnowledge/latest-email-news.aspx?pageid=54358

teameffort

over spend sadly happens often, if they find they have money in the back whilst nearing the end of the fiscal year, they go on a spending spree, i have even known the managers to authorise painting the walls, changing the carpets and furniture each year for the exact same items...just to spend the money. that way they don't lessen the budget next year. a gross waste of money and sickening.:mad:

when in the private sector i had to get permission to buy in everything from loo roll to stationary and overtime. i had to account for it all.

RJP33

Gorgeous_George wrote: »

Incompetence from a civil servant maybe. Outrageous profiteering from a private sector supplier definitely.

By all means bash the buyer but use the cosh on the vendor as well.

GG

Can't really blame the vendor for wanting to make as much money as possible in the situation, that's their business at the end of the day.

Some of the public sector contracts, in particular IT ones are absurdly uncompetetive. It's the civil service's job to get a competetive deal from vendors.