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This is really a myth, I've never seen any large enterprise do this type of bonus on such a bogus construct and I've seen many.


I've absolutely seen it, so it's not a myth.

I worked for a large company (>£50bn revenue) that used to do this in the UK - I had to sign off the 'savings' my procurement stakeholders achieved on the projects (you had to 'agree' their savings and sign them off) because that would go into their performance reports which then triggered their bonus. So it happens.

What else do you think procurement teams get targeted on if not savings/price decreases?

So what do procurement teams hate? Things purchased from a single supplier, with no competition/accepted substitute, and no/little ability to negotiate the price or payment terms.


> So what do procurement teams hate? Things purchased from a single supplier, with no competition/accepted substitute, and no/little ability to negotiate the price or payment terms.

That is also my experience with procurement. That's their whole reason d´etre




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