A procurement manager has been approached by a key supplier requesting that the current 60-day payment terms between the companies be reduced to 45 days due to cash flow problems. After consideration, the procurement manager agrees to this but requires an additional 5% discount on the supplier's prices for doing so. Is this the correct thing to do?
a) Yes, as the procurement manager is helping the supplier so the supplier should help the purchasing manager by reducing its costs
b) No, as the procurement manager is taking an unfair advantage of the suppliers' financial position to gain an advantage
c) No, the payment terms in the contact are 60 days and the procurement manager should insist that the supplier accepts this position
d) Yes, as the procurement manager has a cost-saving target to achieve and looks at the supplier's financial position as an opportunity to achieve this target