Many companies these days have a procurement process to follow when purchasing items over a certain value. How does this work?
- Obtain 3 quotes from 3 suppliers
- Ensure the items being purchased is the same across all quotes
- Pass this over to the purchasing department to get the "best" deal
- Negotiate the prices
But one of these quotes is always going to be cheaper because the first company will get their hand in first to carry out the registration. This means that the other companies do not have a chance at getting the same price, so what happens if the first company who has got the offer is the one who has poor customer services, the bigger company, more costs to over, more bureaucracy, bad management and high costs? They will get a big discount and offer you the deal which is "cheaper" overall. But then looking between the lines there are savings they can pass to the client but they do not because they know they have made the deal and they have a huge discount so they will gain more percentage on that.
So when good supplier does not have the capability to give the discount because the vendor has already offered it to someone else ? How is this a "fair" market when one company is getting an advantage over others? How can small businesses succeed in the sector when all they see is bigger businesses getting bigger and small businesses unable to compete because they are not given the opportunity.
It seems that the Deal Registration process works great for sales, but how does that work whilst trying to maintain a customer relationship long term ? Or making smaller businesses succeed ?