Today’s post is written by Heather Powell, Manager of the COE Department & Project Manager at SafeSourcing Inc.
1. Greed – Wanting too much of something.
a. Greed is wishing you had more power over the people around you. This comes from having money or valuable objects. (Note: wanting the power of respect is a sin of pride, not of greed.) Greed is wanting the power to force someone to do what we want. Money is the universal solvent; enough of it can make anyone do anything. Wisdom is knowing what your price is. Greed, the obsession with power, can drive out all positive forces in your life, even if you think your objective is a just one.
2. In e-procurement greed can be defined as- confusing low cost with value for money.
An area to be wary of is maintenance contracts. The headline cost of an annual maintenance contract may look very attractive but delve in to the details of labor and parts costs and you may discover that the low price will work out as anything but.
Likewise, we all know that poor service often negates the benefit of low cost.
Think too about items such as desk top printers. The printer itself may look like good value for money but what about the ink cartridges? These days you might be better off looking at a MFD (Multi- Functional Device) with toner included as a more cost effective option.
How to avoid this:
• Look into the details of ALL of the potential costs of a contract including those aspects that might initially be a little ‘hidden’.
• Ensure when benchmarking goods you don’t just use a select basket, do the whole lot. With regard to the service element, always take references on potential suppliers to check they’ll be able to deliver. There is nothing worse than choosing a new supplier based on a good price only to discover you have to waste hours of your valuable time because their service is not up-to-scratch.
Do you recognize Greed as a sign of sin in your business practices today? Stay tuned tomorrow for the 2nd sin in e-procurement: Gluttony and how to realize and avoid it.
For more information on how SafeSourcing can assist you in exploring your procurement solutions for your business or on our “Risk Free” trial program, please contact a SafeSourcing Customer Service Representative. We have an entire customer services team waiting to assist you today. We look forward to your comments.