Interesting thoughts.
I originally tried to stay away from competition in sports, as ultimately, this is not my main arena for concern (business and education are). So I’ll avoid this discussion if that’s o.k. with the group.
Firstly, Cindy, welcome to the Cove!! We are happy to have you here. I would like to use your example as a point of discussion, so please don’t take anything here as a personal attack. I feel that I needed to make this clear based on some not so recent (but not distant enough) events.
Let’s examine the case with trying to get the best price for a given item. My first question is in how we look at our supplier base. Are they a necessary evil? Or, are they a partner in our effort to make good products/services? How should we treat our partners, if in fact, that is what we see them as? I give Energy my vote here.
Also, what are the hidden or unknowable costs involved with leveraging your supplier? What are the costs associated with getting three quotes and processing them internally? Do these costs out weigh any savings found on paper? But this speaks mostly to good business practice.
On the topic of Competition, competing suppliers lower their costs arbitrarily, without knowing the ultimate effects to the system or organization (their own). One may loose their hat on one job to gouge you on another. Some see this as give-and-take. I see this as a lack of trust and as a lack of a common AIM (or vision) for both parties. If a company cannot make the required margins on their products to sustain their business, how will they be able to invest in ‘innovation’ or organizational improvements? While we are enjoying our savings here today, in this case, we are losing elsewhere and for how long? Take for instance the automakers today. Most are engaged in a 0% financing campaign in order to draw business. While automakers sales dollars soar, their profit margins plummet. Loss of margins mean that R&D dollars aren’t available. Net gain: loss of innovation. Does this impact the customer (dealerships)? Does this impact the consumer (you and me)? The answer is yes. Competing to give cars away at cost today nets losses of unknown magnitude in the future. But the scenario I’ve described plays out in all industries. Innovations and excellence (quality) are what separate one maker from another. This creates competition, but competition is not a means here. It is an outcome.
Cindy, your intentions are good and noble, but I’m afraid that they are guided by old theory (perhaps you are required by company policy to shop around). Many Buyers I know are operating under this prevailing style, and the practice is quite common. While you feel you are saving money for the organization (proof is on paper after all) by getting the best at the lowest price, are you accumulating costs somewhere else in the process/organization?? Are you sure that you are saving money? Because in a very real sense, the money you are talking about isn’t just the company’s, it is partly yours too.
The theory I share is that Competition will ultimately destroy Quality, and as such, is not a good thing. Thanks for the posts, everyone!
Regards,
Kevin

I originally tried to stay away from competition in sports, as ultimately, this is not my main arena for concern (business and education are). So I’ll avoid this discussion if that’s o.k. with the group.
Firstly, Cindy, welcome to the Cove!! We are happy to have you here. I would like to use your example as a point of discussion, so please don’t take anything here as a personal attack. I feel that I needed to make this clear based on some not so recent (but not distant enough) events.
Let’s examine the case with trying to get the best price for a given item. My first question is in how we look at our supplier base. Are they a necessary evil? Or, are they a partner in our effort to make good products/services? How should we treat our partners, if in fact, that is what we see them as? I give Energy my vote here.
Also, what are the hidden or unknowable costs involved with leveraging your supplier? What are the costs associated with getting three quotes and processing them internally? Do these costs out weigh any savings found on paper? But this speaks mostly to good business practice.
On the topic of Competition, competing suppliers lower their costs arbitrarily, without knowing the ultimate effects to the system or organization (their own). One may loose their hat on one job to gouge you on another. Some see this as give-and-take. I see this as a lack of trust and as a lack of a common AIM (or vision) for both parties. If a company cannot make the required margins on their products to sustain their business, how will they be able to invest in ‘innovation’ or organizational improvements? While we are enjoying our savings here today, in this case, we are losing elsewhere and for how long? Take for instance the automakers today. Most are engaged in a 0% financing campaign in order to draw business. While automakers sales dollars soar, their profit margins plummet. Loss of margins mean that R&D dollars aren’t available. Net gain: loss of innovation. Does this impact the customer (dealerships)? Does this impact the consumer (you and me)? The answer is yes. Competing to give cars away at cost today nets losses of unknown magnitude in the future. But the scenario I’ve described plays out in all industries. Innovations and excellence (quality) are what separate one maker from another. This creates competition, but competition is not a means here. It is an outcome.
Cindy, your intentions are good and noble, but I’m afraid that they are guided by old theory (perhaps you are required by company policy to shop around). Many Buyers I know are operating under this prevailing style, and the practice is quite common. While you feel you are saving money for the organization (proof is on paper after all) by getting the best at the lowest price, are you accumulating costs somewhere else in the process/organization?? Are you sure that you are saving money? Because in a very real sense, the money you are talking about isn’t just the company’s, it is partly yours too.
The theory I share is that Competition will ultimately destroy Quality, and as such, is not a good thing. Thanks for the posts, everyone!
Regards,
Kevin


