Tuesday 27 September 2011

Capitalism doesn’t work and is not efficient

You would think that in these lean times buying parts for industry would be a piece of cake. But, I suspect if you were to ask any buyer in the private sector if their job at the moment was a doddle you would get a resounding “No!”

There is a perception peddled by much of the press, big business and the Tories that the private sector is ultra efficient and the most effective driver of the economy. At best this is utter nonsense. I’ve worked all my life in the private sector and it never ceases to amaze me how little people care about their company, their job or their customers.

Unless your only procurement requirements are for water coolers, photocopiers, fork-lift trucks or telecoms your are unlikely to have a long queue of suppliers desperate or even willing to sell you the goods and services that you require. I’ve never understood why you almost have to beg suppliers to accept an order. Nobody seems to want business. It is an everyday struggle.

I suppose if you are buyer for the likes of Tesco, Glaxo Smith Kline, BAE or other big spenders then you could well be beating suppliers back with a stick every single day, but I’m sure it is not the case for the majority of supply chain personnel in most SMEs up and down the country.

It is a sheer fallacy that capitalism and market forces fill demand. They do not. They take the path of least resistance. Their destination is making a ‘fast buck’. Far too many businesses in this country are no longer interested in manufacturing, investment or the long term. If you are relying on the private sector to drive us out of recession I think you could well be living in cloud cuckoo land!

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