Procurement Professional is the official publication of CIPS Australasia

#104 - Who is supplying your suppliers?

20 Jan 2010

The allegations on the front of the Brisbane Courier Mail not too long ago that the biggest sub-contractor on the new ‘Bris Connections’ airport link toll road project has deep connections to a bikie gang  www.couriermail.com.au raises again the question of do you know who exactly is supplying your suppliers? Sometimes deep down the supply chain too. [See previous blogs #28 and#102].

Also, whilst we are on this subject again, why exactly do you need layers and layers of sub-contractors forming such a long supply chain – especially for infrastructure projects. Certainly some projects are too big for a single contractor, but how many do you need? In this case the project builder has a project management team, head contractor, main sub-contractor, appointed  sub-contractors and a wide range of small subbies. A long tail to control and manage specialties and quality. But also at least SIX mouths to feed at the trough. Six margins. No wonder the price is over $5.6billion.

Maybe Dan the man had it right at the conference after all? [see Blog #89]

The Buyer – posted 20 Jan 2010

The views of THE BUYER are personal and are not necessarily those of Procurement Professional magazine, BTTB Marketing nor CIPS