SUPPLIER RELATIONSHIPS

Supplier Relationships in Context with Public Sector Point of View Against Private Sector Organizations



Table of Contents

Supplier Relationships in Context with Public Sector Point of View Against Private Sector Organizations4

Introduction4

Discussion5

List of improvement8

Conclusion10

References11

Appendix15

Supplier Relationships in Context with Public Sector Point of View Against Private Sector Organizations

Introduction

The public sector has sought to solve in the last decades the tensions between more market-based provision and more value-added public from the provision of public services. In spite of numerous critiques of the proceed to the externalization of services, by the late 1990s there was a much greater understanding than ever before that the market had a foremost potential role in supplementing—even occasionally replacing the role of public sector in-house provision. With this understanding, although, there came the realization that the public sector had traditionally misunderstood the variety of likely relationships between actors in the 'market'. With the dawning appreciation that market relationships were socially assembled in the procurement process, not simply a product of 'market conditions', the require became clear for a more pro-active role by public sector organizations in market management and greater vigilance to developing mutually rewarding relationships with external contractors, if they were in the public, private or voluntary sectors. Also, the success or failure of any alternative service-delivery arrangement probable depends on how well governments can manage the entire contract process. Effective contract management needs mitigating exact difficulties that can plague the contract process. These problems originate from the dissatisfaction with prior contracting experiences, transaction costs, characteristics of government's structure and procedure and characteristics of external environment (Bolton, 1998 , pp: 56).

Discussion

In the public sector since the 1980s there has been an international trend to contestability and market approach in the delivery of public services, mainly with reference to local public services. It has been paralleled by the adoption of contract instead of regulator contract. The underlying foundation of this trend was that competition would result in improved outcomes such as : greater efficiency, higher quality of service, a clearer focus on customers and better value for money (Oliver, 2001, pp: 481).

In such a direction, the ongoing reforms started all over the world with the separation between the public authority that owns the assets and the supplier (a public, private, or public-private organization) to which the service provision is contracted out. This separation between the buyer and the supplier, as well as the use of competitive bidding, needs that the service could be clearly specified in a form that can be utilised as part of the contract and contrary to which performance can be monitored. Due to the increasing customer pressure, the evaluation of the performance of suppliers of public services is gaining more and more importance in the processes of rationalization of public total cost aiming at achieving adequate improvements in service quality (Boyne, 1998, pp: 705).

The concept of service improvement is inherently political and contestable. The performance of public service providers is judged by multiple constituencies. Each of them values distinct criteria to referee the standard of public ...