Thursday 8 July 2021

Tesco Hikes Transport Costs For Suppliers

According to trade publication The Grocer, the extra charges will apply to Tesco’s primary distribution rates, a service run by the retailer that brokers third-party hauliers to collect goods from supplier depots and transport them to its distribution centres.

Tesco is reported to have told suppliers that it will apply an additional 14% surcharge on primary distribution rates from next month until the end of the year.

NamNews Implications:
  • Puts official inflation figures of 2-4% in perspective…
  • We need to think ‘pound-in-your-pocket' inflation.
  • i.e. suppliers and retailers now need to factor real supply chain cost-increases into pricing.
  • Negotiation will simply determine who takes the hit first…
#Inflation #PriceIncreases #LockdownConsequences

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