Concerns relating to the quality of supply are not limited solely to the goods on offer. Of at least equal concern is the need to secure timely and reliable sources of supply.
A small manufacturer may not be able to provide a sufficient number of goods of a given kind to meet the demand of a large municipality. Particularly during times of economic hardship, it is wise to consider the financial strength of the supplier.
Suppliers that are financially weak may not survive to honour their warranty obligations. When a corporation is placed into bankruptcy, it is rare for anyone to assume its warranty obligations. Service contracts that promise updates and revisions to technology to meet rising needs may not be honoured by a weak supplier.
A number of quality related considerations require attention to be paid to the kinds of products that are being offered. These include the need to discontinue reliance on obsolete technology and methods; and the need to provide state-of-the-art service to the residents of the municipality.
Most municipalities have several generations of equipment that service each particular area of municipal operations. Consideration must always be given as to how easy it will be to integrate new equipment into any aspect of municipal operations. On the other hand, concern also should be given to the risk associated with the need to avoid the use of unproven technology and methodologies.
Generally, there is a clear benefit in employing suppliers who have a proven track record of successful delivery and good reputation within the business community for integrity and competence.
For major contracts, provided the municipality has access to relevant professionals who can make this kind of assessment, consideration should be given to whether a proposed supplier possesses the experience or financial, technical, personnel or other resources that may reasonably be expected to be necessary in order to carry out the obligations the supplier proposes to assume under the terms of its bid.
Another consideration that should be taken into account (provided there is proper supporting evidence in place to document any decision made) is the prior record of the bidder as a supplier to the municipality. In order to take into account considerations of this nature, the right to do so should be spelled out expressly in the terms and conditions of any RFP or tender.
On the other hand, one should not overemphasize the importance of quality. As with every other concern in purchasing, there are declining marginal gains in quality. Thus, quality cannot be considered without regard to other aspects of cost, much as price cannot be considered without regard to quality.
Quality is not absolute. It must be considered relative to expected usage (how often, how long, under what conditions, etc.). If usage is rare, a cheaper model may be the best buy even of it is less durable.
Quality management or control may be approached on a proactive or a reactive basis. The provision of proper specifications to potential suppliers plays a key role in proactive quality management, because the risk of unsatisfactory performance is greatest where suppliers lack a full understanding of what is expected of them and the things they are to supply.
Proactive quality management also involves incorporating measures into the contract award and documentations process to minimize the change that a supplier will be selected who cannot satisfy the specifications. Finally, a proactive approach involves the systematic testing and inspection of items procured to determine whether or not they are qualitatively deficient.
A reactive approach to quality management involves the identification of qualitative problems in supplied material during the course of use: the isolation of the cause of the problem and the procedures for dealing with a supplier whose materials do not conform to contract quality requirements, or are otherwise incomplete.
