donderdag 18 februari 2010

ING keeps a stranglehold on its suppliers

ING bank has intimidated its suppliers in the summer of 2009 because ING wanted them to give a reduction on its products and services.
The companies who delivered to ING bank had to reimburse a part of their profit. If they refused this, than the bank threatened to no longer give assignments.

In August,last year, the purchase-department asked a group of suppliers to retroactively reimburse twelve percent of their profit. We talk about a few millions. It's clear that the entrepreneurs felt like they were being blackmailed by ING. However, since ING bank is an important client, most of them had no other choice than agreeing to ING's terms.
ING bank confirmed they negotiated strongly but insisted that the suppliers were free to reject the offer.

ING bank is a listed company and she tries to improve her profit in all possible ways. Indeed ING is a huge victim of the depression. I think it's good to keep ING as a friend during the depression we live in because ING is very important for the suplliers. Besides, once the depression is over, there is the possiblity that ING will do extra efforts for the suppliers.

Important values of the bank are integration and transparency. Do we really have to believe this?
The companies had to send an old invoice to the usual department. Afterwards they had to reimburse twelve percent of that old invoice to the purchase-department. In this way the purchase-department could indicate how many money was saved.
So if I look at this, I don't believe in the 'important' values.

This way of acting found also place in the company 'Belgacom'. Belgacom put an ultimatum to a couple of suppliers and demanded a strong reduction. It's not all that negative I think. ING could as well choose the competition without giving the existing suppliers the opportunity to offer to a huge company.
Anyway the most important cause of all this, is the current depression that hopefully will come soon to an end.


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