The headline news in THE SYDNEY MORNING HERALD today http://www.smh.com.au/national/woolies-executive-fixed-40m-computer-contracts-court-told-20120516-1yrd4.html that a former GM for ICT at Woolies is on trial for alleged corruption in liaison with an IT supplier, is surprising because of the sheer numbers apparently involved. The former GM, David Wills, is alleged to have received $3.7m in kickbacks - a staggering amount, but still less than 10% of the IT contracts awarded on his watch it seems.
So, caveat emptor and all ... let the buyer beware. Autocratic GM level users are capable of maverick spend beyond ordinary imagination. This is one reason we have good procurement process. Use the example of the hapless Mr Wills next time you are justifying the three way match, a new P2P process or just convincing bosses, even stakeholders, that procurement has a role to play in any good business process.
The Buyer - posted 17th May 2012
The views of THE BUYER are personal and are not necessarily those of Procurement Professional magazine, BTTB Marketing nor CIPS.