Monday 8 November 2021

Supermarket Buyers Using Delay Tactics To Thwart Supplier Cost Price Increases

According to a report by trade publication The Grocer, retailers are asking suppliers for increasingly complex cost breakdowns for individual ingredients, packaging, storage, transportation, as well as manufacturing and labour overheads and profit margins to justify any price increases.

The report highlighted that signoff processes are also lengthening and often requires a level of detail only an ‘open book’ supplier would be expected to share.

NamNews Implications:
  • Because of the relative size and importance of a major customer…
  • …NAMs may not take the risk of ‘getting mad’.
  • But for sure these buyer tactics will encourage NAMs to ‘get even’.
  • And in unprecedented market conditions…
  • …there are many ways of getting even.
  • (better still, suppliers, why not focus on optimising your good customer relationships?)

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