In tough times the flight to quality is instinctive
In these financially straitened times for us all, we have probably not been as quick to make purchasing decisions as we might have been, say 2-3 years ago. Today when we are buying goods or services we are all being increasingly more careful about where we place our custom. (Anecdotal evidence indicates that this applies as much in our personal lives as in our professional lives).
Naturally when making a purchasing decision, we are factoring in the “normal” criteria of price, specification level, availability, lead time etc. just as before but now we must also consider the suppliers’ ability to survive in the current climate. After all, what use is a ten year warranty if the supplier has gone to the wall?
So how do we minimise the risks associated with the purchasing decision and by corollary increase the level of assurance we need from the goods or services sought?
Most professional organisations will typically opt for suppliers who hold some form of quality management certification. In ESBI we have been continuously certified since 1992 to the relevant standards in the ISO9000 series. These standards have been amended over that period and ESBI has managed to maintain certification through all those changes while at the same time adapting to market requirements.
For an organisation like us, where performance excellence is espoused across a diverse range of engineering services – strategic consultancy, power plant operation and maintenance, renewable energy and carbon solutions – the challenge is to offer a consistently and reliably high level of service to our clients and potential clients. In order to do that, we ourselves require the highest levels of quality from our suppliers in turn.
One way of minimising many of the risks associated with the purchasing decision is to purchase from quality certified organisations. When a supplier has certification to a recognised quality management system standard such as in our case, ISO9001:2008, it gives the purchaser a level of assurance about our commitment to quality. Of course, our certification is awarded by an accredited certification body (NSAI) but we’ll talk more about that in a future blog.
In my own experience the absence of a quality management system certification is a show stopper. If an organisation is not certified there is an insurmountable barrier to making a purchase.
I’d be delighted to hear your views on this post whether you agree or disagree with it.
Noel Clarke is Quality Manager in ESBI
Noel I was delighted to see your “show stopper” comment.Also the hierarchy of controls to minimise risk included in “Normal” selection criteria.In tough times the flight to quality is certainly instinctive however is there a tendency to chase the cost reduction failing to recognise a reduction in quality? Are these two factors intrinsically linked.I agree that these are tough times and we must consider the suppliers ability to survive in the current climate.Are you sure this barrier is insurmountable?
Hi Eamonn, thank you for your comment. In the world of utility scale Engineering projects, the de-facto requirement is weighted towards the need for contractors and/or suppliers to operate a certified quality management system (QMS). That said, the level of quality required needs to be specified and ultimately agreed between all parties.
The question of whether the barrier is insurmountable or not is a matter of opinion. In my personal opinion, in the current economic climate, my view remains as expressed in the original blog.