Monday, 14 January 2013

If C = 7k, and J = 2k, how many will suffer @ HMV as a result of suppliers calling the tune?

I assume you have recognised C is an abbreviation for Comet and J an abbreviation for Jessops.  The number refers to the number of anticipated jobs lost as a result of suppliers 'calling the tune' and leading to the firms going into administration.

Tomorrow, it is expected that HMV go into administration, once again as a result of suppliers 'pulling the plug' - 4,000+ employees are vulnerable. By 'calling the tune', in HMV's case, we mean suppliers not responding to the request for £300m of additional finance to pay of bank debts.

His Master's Voice must be crying out, loud and clear, to the Secretary of State for Business, Innovations and Skills, and the Chancellor for a strategy which halts the high street decline and can address credit guarantees. Banks were 'to big to fail' - what about retail? The demise of the high street seems to be accelerated by web sales but we must also be reaching a tipping point when shoppers are too depressed and demotivated by the sight of vacant shops to bother.

But will supplier short-termism have jeopardise their own future? Suppliers need buyers as a channel of distribution. Suppliers also need to reflect on how other potential buyers may view their 'short-termism'.
I am reminded of the Caesars and their demonstration of supreme power in deciding who would live or die in the gladiatorial fights. But I am also reminded that neither the Caesars

However, like a broken record, I have been reiterating time and again that Procurement Risk Management needs to be proactive in addressing what has manifestly become a real and present strategic risk.

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