I WAS TALKING in my Risky Business blog on the 21st October about Purchasing Power, and how large corporates will always find ways of”bullying” trade suppliers in order to protect their own financial standing.
Serco Group PLC finds itself on the BBC news for this very reason. A few days ago, its financial director wrote to suppliers asking them to retrospectively agree a 2.5% rebate on annual spend. The letter went on to say “your response will no doubt indicate your committment to our partnership, but will also be something i will seriously consider in our working relationship as Serco continues to grow”. …..Hmm, is that some kind of veiled threat I’m wondering ?
Fortunately for its suppliers,Serco must have re-read its own Corporate Social Responsibility brochurefor 2009 that talks of the company’s governing principles, one of which states, “We listen. In doing so, we treat others as we would wish to be
Serco has now apologised to all its suppliers saying that it had made a U-turn on the enforced rebate idea. I guess Serco wouldn’t have liked its customers threatening them with imposed rebates on past business either…….
BHS auditor PwC questioned over why it described the embattled retailer as a 'going concern' days before it was sold for £1
KPMG raised concerns over Retail Acquisition's ability to continue to trade and fund both BHS
Duff & Phelps’ Irish business now boasts over 70 staff
FRC looks into events at BHS following pressure from MPs to scrutinise directors and advisers involved in sale of department store prior to its collapse