Thursday 11 October 2012

Tesco Want Closer Links With Suppliers – Ready?

The Tesco presentation has been well covered elsewhere, and  Philip Clarke’s full speech is available on the Tesco website.

However, in terms of ‘getting personal’, nothing beats the real thing. Best to have been a member of the audience and to have experienced the passion in person. Straight from the main man, a promise to work more closely with suppliers. These guys are really serious about more collaboration with the right trade partners in order to create a more personalised consumer offer, reflecting the current multi-channel environment and anticipating future demand.

In other words, Tesco feel the need to innovate and believe they can best do that in collaboration with suppliers. 

Keeping the best for Tesco, on condition...
However, I would suggest that they feel the need to such an extent that they will go to third parties should suppliers be found wanting…  This means saving your best ideas for Tesco, thereby potentially accessing 31+% of the UK market.

In return, it is vital to demand a fair-share relationship, based on a robust financial partnership, all wrapped up in a contractual agreement, of equal value to each side, in terms of both letter and spirit of the deal…

Getting there means being able to calculate the real cost to you, and being able to demonstrate the full financial value of your offering to Tesco, convincingly…

This time it is different
Tesco are serious, and they need serious trade partners.  In going for broke with Tesco, you are going to make your biggest UK customer bigger.
It is therefore vital that you also secure a fair share of the action…

Incidentally, participating in the live personal experience is truly incremental.
It probably explains why the IGD Convention is a sell-out every year – a key issue being the location of a venue large enough to accommodate all applicants…! 

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