543: Who is responsible for making sure suppliers break even? w/ Philip Ideson and Kelly Barner

543: Who is responsible for making sure suppliers break even? w/ Philip Ideson and Kelly Barner

In challenging economic times, each company has to eke the most value out of every contract. But are there limitations to that?

A recent article from CIPS' Supply Management Magazine, How the Actions of Procurement Teams Are Contributing to Insolvencies, brought this question to the forefront.

In a LinkedIn Pulse Poll, Philip Ideson asked, should procurement be responsible for what they ask for in situations where they hold a high amount of leverage or is it up to the supplier not to offer what they cannot afford?

In this episode of the podcast, Philip is joined by Kelly Barner to discuss the results of the poll as well as some related 'ethical' questions that procurement teams may be facing today:

  • How can procurement 'protect' suppliers from bankruptcy if those suppliers are not fully transparent about their cost model?
  • Who should decide what it means to make a 'fair profit?'
  • Could holding a supplier's feet to the fire lead to brand damage for the buying company?

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