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My point wasn't to say that, from the outside and without the actual data, we could know what the optimal buying policy should be. It was to say the point was thrown at us like powder in the eyes, as the French say. Does Gumbel actually show that 29 suppliers was significantly costing more money? No. He's just insinuating. Oh, there were 208 blood labs! (OK, reduction/concentration may well have cut costs, but it would have been better if he'd said so and said how much a year). Oh, 29 chicken suppliers! (Same remark).
In fact, this is part of an overall tactic in his article of talking about plethora. Woah, you guys, you realize they have 99 of everything? How can that be efficient? Obviously all this mess needs cleaning up...
Just, once again, a way of selling "necessary reform" without stating exactly what is wrong, exactly what is proposed, and exactly how that would fix it.
And -- not one minute -- who really wants to fool people into "needed reforms" and why.
Good deconstruction points. You're completely right that touching upon a plethora of services is not a direct argument for reform, but perhaps in Gumbel's world it is. There's no insight in financial numbers.
Finally: since I know you're in favour of quality food production sold as locally as possible, how would you supply a huge hospital group? my answer would be : sounds difficult, but all the same, the hospitals buyer must do her/is best to get quality food and not to concentrate too much on one supplier...
Exactly the question. You know, when I walked the dog today, I may suggest that the hunger for scale enlargement may again be at the heart of it. The distribution from chickens (or pigs) is really not hard: you transport the chikens to the butcher and from there they can be distributed directly to the hospital. It's just that if you do this locally, costs per chicken increases. That's it. Now, if only we could increase transporation costs to make local, small scale distribution/butcher complexes more attractive again... Let's get 29 distribution centres with the best chicken meat from local farmers to ill people. I'm all for it. Perhaps we should contact Jamie Oliver...
(Is there a diary on how much miles a dead chicken currently makes before it ends up in a pot?)
Is there a diary on how much miles a dead chicken currently makes before it ends up in a pot?
The dead chickens I see could walk it. But no, I don't have data, only anecdote.
The chicken distribution problem: the only certain added costs from having a certain number of suppliers seem to me to be administrative/accounting costs. These would be reduced by doing away with competition, but the price might then go up.
If you strike a cheap deal with a mono-supplier far away, he will recoup transport costs in product quality. (And we don't want long-distance transport for environmental reasons).
Anyway, we want a change in hospital attitudes to food. Sick people need good food.
So, logically, we should be looking for best-quality suppliers as close as possible, and in sufficent number for there to be some reasonable competition. 29 suppliers for 38 hospitals may seem like a lot, but some of them may be stop-gap suppliers used every now and again. Agreed the number could be reduced, and the buying centralized, but not to the point of according a quasi-monopoly.
I understood about the dog. Woof!
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