Pushing to the limit

3 September 2007

In this story in August 2002, we reported on Camelot's plan to limit its business with any supplier to 20 per cent of the supplier's turnover.

In theory it sounds like a sensible idea. The arrangement would protect its suppliers, if the firm failed to win a new contract to run the national lottery. (Although they needn't have worried, as Camelot has been selected as the preferred bidder for the new contract to run until 2019.)

Does a buyer have a responsibility to look after its suppliers in this way? Or should decisions on how much business is accepted be left to suppliers?

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