The World’s Most Expensive Pizza!
Having spent the last five years recruiting Buyers, Purchasing Manager and Procurement specialists I have come across many people who have saved their employers vast sums of money and directly increased the bottom line. They don’t just find the cheapest product, ingredient or component, they also find the cheapest and best way to get this manufactured and supplied. Conversely, I have also met some who have sadly done the opposite.
After having my usual lunch time read of the BBC News website I was staggered to find out that it costs the NHS £17 to supply a single gluten-free pizza base. That’s not even including the toppings! At that price I would be expecting to be sat in a posh restaurant and not to be on hospital ward. So why is it so expensive to get a Pizza on the NHS?
The answer lies in the total cost of supply (often referred to as Total Cost of Ownership). According to the article it only cost £8.95 for two pizza bases but the cost of handling and delivering the pizza bases increases to £34 for 2! To get semi political for a moment I am not about to suggest any privatisation of the NHS, but it there was a commercial pressure to supply the Pizza at a competitive price for customers to pay, the delivery cost would fall dramatically.
As an outsider, I am not party to the agreements that the NHS have with their suppliers but I am sure there is a better and cheaper way to deliver products to the hospitals and responsibility must fall on the procurement people who set up these agreements in the first place. In my opinion this supply chain must be review and cost must be taken out. As a taxpayer, I want my money to be spent on the NHS but I am keen to see that users of the NHS get the maximum return possible.
This blog is just my personal opinion with figures quoted being from a story on the BBC News website. I am always interested to simulate on subjects like this so please share your opinions...
May 24, 2012 | Share: