Prof. Rob Handfield Contributes to CNBC Conversation on Heinz Kraft Procurement Practices
Professor Rob Handfield, Bank of America University Distinguished Professor of Operations and Supply Chain Management, weighed in on the questionable procurement practices of Heinz Kraft being implemented to meet bonus targets.
Suppliers say Kraft Heinz employees are aggressive in demanding lower contract costs, sometimes at the sacrifice of longer-term alternatives used by peers like Unilever or Procter & Gamble. One example is pushing for extra savings in the next quarter, if a supplier in unable to do so in shorter term.
“They’re just using it as a blunt instrument, saying ‘give me 10%.’ You can’t do that, especially in a mature, consumer goods company,” said Rob Handfield. Read full article at CNBC.com.