QHow can I get my suppliers to recognise that my business strategy, fascias and customers are different to my competitors? When they come to sell their ideas and new products, why don't they see the points of difference between us supermarkets?
AHaving spent time as an account manager for various manufacturers, let me try and give you an answer and then some ideas on how to change the way your suppliers are behaving with you.
A recent report predicted imminent food shortages across the world. At the macro level this will force up prices. Combined with a low RPI on food, it would seem logical that there is pressure building to increase prices. The newspapers are full of reports of food manufacturers under pressure from shareholders to improve financial performance.
Shopper and consumers are as fickle and demanding as ever, so manufacturers must out- smart their competitors. Other reports state that there is "over-capacity" in food manufacturing, thus the likelihood of consolidation ever looms. It would seem, therefore, that the link under the most pressure has to be the manufacturer.
With the retail landscape changing every month and the bigger of you retailers getting bigger and stronger, no wonder suppliers are nervous about creating points of difference. They are, at best, hanging on to what they have with you.
QSo how do I get them to change their behaviour and treat me differently?
AThis is part two of your answer. Both of you should start by developing trust. Start to share information about each other, meet more regularly and frequently (this doesn't mean loads of time-consuming meetings). Have shorter, sharper and better-prepared sessions rather than lengthy moaning ones. Get to know other people in other functions and let them do the same within your business. Develop a real joint business plan.
This really should be two-way - one manufacturer said to me, "What's the point in us being good to the retailer if we get nothing in return?" The more you know and understand each other, the more you should know what each other needs and wants, and what you can offer each other in return.
Here's a question to ask your team: "What are we doing that is causing our suppliers to distrust us?"
It's tough out there - you need the specialist manufacturers in their respective categories.
Grow the cake with them before you cut it and divide it! What do you think?
Has the number of customer complaints about the price of goods increased recently?
