How suppliers rip-off the unwary

Monday, September 3rd, 2012

How suppliers rip-off the unwary

Brian Farrington Ltd,  the authors of Farrington-Lysons “Purchasing and Supply Chain Management”, the recognised procurement text for 28 years now in its eighth edition warmly invite you to our next roundtable event “How suppliers rip-off the unwary”.

We are the UK’s consulting and training leader in the areas of sustainability and risk in procurement, clients include 33 of the current FTSE100 and internationally.

You are invited to attend our next ticket-only complimentary roundtable event on Tuesday 9th October 2012 at the Mere Resort, Cheshire.

Please follow this link for information on our solutions. Please just let me know if you would like to attend and I can get you registered. If you have any questions please don’t hesitate to contact me.

Stephen Ashcroft

01744 20698


How suppliers rip off the unwary: Tuesday, 9 October 2012 at Mere Resort, Cheshire (9am through to a lovely buffet lunch)

Join us at our forthcoming event and learn as Dr Brian Farrington, the recognised procurement thought leader and passionate orator, with input from his senior team, lifts the lid off supplier’s nefarious actions. You will not be bored and you will leave with a renewed determination to increase the bottom line.

There is ample evidence that many organisations are, right now, fighting for survival. The recent administration of Mouchel is an extreme example of a failure to generate enough return on capital employed. There are other less publicised examples.

Some suppliers are ripping off the unwary. The unwary include procurement, engineers, IT, directors, security and other specialists who all have the mistaken belief that their suppliers are looking after them (whatever that means). Of course, there will be the argument that supplier relationship specialists will have excellent relationships. When we suggest changing a source of supply we can guarantee, within minutes, the standard objections that it will impact on quality and nothing will go right.

Challenging suppliers for competitive prices requires courage and the application of realistic tools, including negotiation. In the latter case don’t try this if you are the public sector because the EU believes it distorts competition. Balderdash!

We have just read an Annual Report where the strap line was ACTION NOW. Excellent. That speaks our language. What is wrong with challenging prices? Yes, we have heard the arguments about value for money and they are valid. That being the case why is it that many buying organisations haven’t a clue what the long-term cost in use is? Why is it that many buyers do not know what the cost drivers are behind a contract price? Yes, we have heard from some buyers that the supplier will not divulge the information.

If we want ACTION NOW there are many proven approaches that will deliver benefits. Take the top 80% of spend (and that isn’t a novel idea) and attack the pricing. There are no known fatalities for renegotiating existing contracts. There are no known fatalities from inviting bids from new suppliers. Neither are there any known fatalities by insisting on cost breakdowns from suppliers.

If you are resisting the thought of attacking prices please explain to us how, in one situation, suppliers who had tendered prices for a ship-repair contract could reduce their prices by 20 – 40% when challenged. Also explain how one supplier of bearings advised its sales people to add an ‘X’ after the standard part number and increase the selling price by 25% by inferring it was a special. Let us try and read your mind. You are asking who would fall for that one?

If you were incompetent or lacking in product knowledge you would fall for it.

Why should you attend?

Based on solid theory and real case studies, this roundtable will provide you with a proper understanding to stop suppliers ripping off the unwary and with tools and techniques required to successfully implement approaches in your approach to engaging suppliers.

Companies that have implemented and continually use Dr Farrington’s methods achieve significant bottom line improvements and recue procurement risks.

What are the benefits for you to attend?

• Learn how to plan, organise and implement procurement techniques that will achieve increased revenue, improved quality, reduced cost and reduced risks

• Understand and analyse your suppliers allowing you to “mistake -proof”, and ” future proof” your buying activities

• Critically analyse and engineer your procurement processes, allowing you to get the suppliers you deserve.

Learn how to educate and involve your teams to stop suppliers ripping off the unwary, achieving “buy-in” and increased knowledge and understanding of how to reduce your costs.

Places are limited for senior professionals committed to excellence and we would welcome you joining us. Request to attend: