A Few Thoughts

When I used the word “decimate” to describe the impact of Family procurement on the supplier base I was using it colloquially. Those with a bit of Roman history will be aware of its real meaning.
The effect has been a reduction of more than a tenth and we did, of course, avoid the clubbing and the stoning – although to failed firms it has often felt like that.
It is almost impossible to impart our overview of the scale and nature of things – in some cases because this would possibly allow failed firms to be identified. We are also just starting to appreciate the significantly wider set of unintended consequences which will follow. In snapshot;

Clients faced with significant travel to find a LA firm (if they even can) – minimum 3-hours is the longest reported to date.
Matter starts in large rural areas being concentrated in geographically distant towns.
Large firms with interrelated contracts bounced out whilst smaller firms, without capacity to deliver the NMS awarded, survived (with no blame on them).
Nationally renowned firms losing Family contracts not just as the LSC would like to suggest mainly firms doing less than 100 NMS per annum.
Commercially sensible bids, on the basis of the information available, resulting in staggering numbers of NMS.
Towns the size of Leeds reduced to tiny numbers of suppliers

The general picture, perhaps best represented by where we are based, Middlesbrough, is of solid, longstanding general and LA practices (you have to do the latter in this part of the world) being culled by more than 50%. Years of commitment to working at the lowest rates, investment in franchising and related IT, constant upheaval, never-ending cost auditing, payment delays and latterly dealing with indifference at best from the LSC leading to this nightmare scenario.
I will make a start on untangling the practical ramifications of this on Friday at the regular Webinar.
Those wanting some more direct consultancy impute, either way, should give us a ring.

About Author: SP

3 comments on “A Few Thoughts

  • Decimation, massacre, annihilation, destruction, slaughter; plenty of words to describe the outcome for many family firms. I sure everyone is hearing stories of who has and who has not got a contract.
    To lighten the gloom.
    Apt Poster
    Plus a video on how the LSC do things.
    (Watch from 1 min if short of time)

  • Can I post that U tube link on the main page? V good indeed

  • Don’t see why not, you normally do for your weekly music slot.
    Originally posted on this blog.

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