Developments in technology and information systems increasingly focus on eliminating thinking and the associated decision-making (fact-based). Mobile phones can increasingly take over tasks from our memory and thinking processes. Robotics, for example, not only increasingly take over repetitive tasks from humans, but can even perceive the environment and, based on these observations, make independent choices to perform certain actions with the help of sensors. These developments are fuelled by a need to achieve the highest possible performance while minimising risks, by means of processes that are as efficient as possible. Fact-based purchasing is in its earliest stages.
Purchasing still makes decisions based on cost savings
Despite the above developments, we are seeing that most business sectors are still characterised by traditional control principles. Thinking, decision-making and use of influence and control are still dominant. These traditional principles are also reflected in purchasing when selecting suppliers and cooperation partners, where an efficient process, high performance and minimising risks are important.
The majority of organizations in Europe and North America also continue to make purchasing decisions based on cost savings. In addition to the legality issue, which mainly affects public authorities, this is still the driving force behind many purchasing organisations, both in the private and public sector.
Of course, this approach is beneficial in the short term. But on a strategic level, it won’t work. Especially for government organizations, it is important that purchasing takes on a more strategic role and, in addition to savings and legitimacy, focuses more on efficiency and delivering added value. Fact-based purchasing helps with this.
Selecting potential suppliers based on their actual expertise and performance
Developments in the field of digitization and big data mean that fact-based purchasing will be one of the most important developments for purchasing in 2019: Purchasing on the basis of objective figures and data. Now fact-based purchasing may not sound like a super trend to many readers, but ask yourself this: Are performance and risk really part of all your purchasing decisions? Are potential suppliers truly selected on the basis of their actual expertise and performance? And if so, are the actual expertise and performance related to the (strategic) goals of the organization?
The Best Value selection process offers you the opportunity to make the step to fact-based purchasing and to actually start selecting on the basis of actual performance and expertise.
Would you like to know more about the Best Value selection process or what else the Best Value approach has to offer you? Please contact us.