BA, outsourcing
BA row shows need for back-up plan
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The dispute between British Airways and Gate Gourmet should act as a warning to the profession, purchasing experts have claimed.
They say the high-profile case illustrates why purchasing staff drawing up contracts for outsourced work must carry out risk assessments, monitor supplier performance and implement contingency plans in case contractual terms are not met.Kevin Barrow, outsourcing and staffing partner at law firm Tarlo Lyons, said: “Procurement loves consolidation, but there is a downside if you have all your eggs in one basket.
“Perhaps what BA needs is a lot of suppliers and a bigger procurement department so it’s not totally exposed if one has a problem.”
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