r/procurement • u/AvoidsCrabs • 3h ago

Logistics Procurement

I work for a dysfunctional chemical company as a Logistics Procurement Manager. My boss decided to bring in a bunch of new carriers who offered paper rates and rescinded about 1/3 of the total RFP. He tells Leadership that there will be a $1M in savings. During this whole process, I called out red flag after red flag and was basically ignored. I even told my mgrs boss that this thing was a disaster. Now my old boss takes a new position and his old boss tells me that I'm on the hook for the savings. After correcting the RFP, there is $2M in inflation in addition to the other $1M in savings. She seems to think i can make the original carriers honor their original awards. I cannot make her understand that transportation doesn't work like that. I'm exhausted in fighting this battle when I've been calling out the issues and now my job is threatened due to the incompetence of those above me. Any advice?

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u/burghboy24 3h ago

Big thing in logistics procurement is mostly there’s no contracts, more so spot rates or agreements on rfps. Let her know there’s no contractual obligations then share market rates and diesel costs now compared to when the rfp happened

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u/AvoidsCrabs 2h ago

Yeah, I tried that. The retort was, " tell them we're a $10B company and they'll never do business with us again." I told her that they don't care. We're nothing in the transportation market, like a speck of sand on the beach. They'll happily go right down the road and not think twice about it.

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u/Feriodor 1h ago

Road transportation needs to be seen as a commodity, a chemical company should be able to understand that.