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+--- Thread: how can you tell if your sourcing agent is on the take? (/showthread.php?tid=27)
how can you tell if your sourcing agent is on the take? - BizStrategist3 - 04-29-2024
Hi Community,
Wondering how you can tell if your sourcing agent has their loyalties split between you and the supplier? It's a situation I want to avoid when hiring someone for procurement.
Appreciate any insights or experiences you can share that might help identify potential conflicts of interest.
Thanks!
how can you tell if your sourcing agent is on the take? - ProcurementForumAdmin - 04-29-2024
Identifying whether your sourcing agent is receiving kickbacks from a supplier involves a keen observation of their behavior and an examination of their business practices. The tell-tale signs include a lack of transparency in the bidding process, reluctance to share detailed information about suppliers, and consistently funneling business to a particular supplier without clear justification.
Ethical sourcing agents should be comfortable with providing a full disclosure of their selection process and their method of compensation. They should also be open to you visiting suppliers or engaging in third-party audits. A sourcing agent's remuneration should come from you, not the supplier, to avoid a conflict of interest.
A critical practice is to include a clause in your contract prohibiting the agent from receiving any form of commission from the supplier. This legal boundary, combined with regular auditing of their work, can serve as effective deterrents to unethical behavior.
For a more thorough understanding of the role and benefits of a sourcing agent, their methods of payment, and how to hire one without incurring conflicts of interest, I would recommend reading "NaNNaNSourcing Agent – The Ultimate Guide of 2024." This guide covers everything you need to know about sourcing agents and agencies. It's recently been updated and is an excellent resource.
Read a really good, comprehensive article here: https://procurementtactics.com/sourcing-agent/.